Startups

Should Your Startup Consider a Shorter Working Week?

  • 4 min Read
  • November 4, 2019

Author

Escalon

Table of Contents

 

A business in New Zealand experimented by offering their employees a 32-hour work week while paying them for 40 hours. 

The results? Happier employees and increased productivity.

In fact, the experiment worked so well the company found their staff to be on time, have better attendance, take less breaks, and produce at the same level as they did with their five-day work week.

While this same experiment has been repeated in countries all over the world, it may leave you wondering if your startup should consider a shorter working week.

Let’s look at the benefits.

What Do Your Employees Do All Day?

Does your staff actually work the whole eight hours you are paying them for when they work five days per week?

It seems the answer is actually, “No.”

A study on worker productivity found that office workers are only productive about two hours and 53 minutes of each day.

While this study finds employees actually work for about three hours each day, other studies show they may work up to five hours a day.

This is still a long way off from the eight hours you are paying them for.

Procrastination, breaks, web surfing, distractions, texting, and talking to co-workers often eats up the other hours in the day.

The conclusion? Having your team members stay at the office for eight hours doesn’t make them more productive.

While they are “putting in” the hours and are at work, they aren’t actually working.

What are Your Employees’ Frustrations?

Many employees struggle with a work-life balance, and this causes them a lot of stress.

You’ll find that a large portion of your team members feel burned out and lack the drive to get the job done in an efficient manner.

This may all be because they don’t have enough time off. Employees today get frustrated when their work-life balance is out of sync with their real lives.

So, what can you do?

Your Options as a Startup

First, you want to concentrate on results and not hours. The results are what’s important not the hours each employee works.

Hire employees you trust, give them a job to do, and let the hours work themselves out.

If you’re ready to try a 32-hour work week, a work week of four 10-hour days, or even shortened days, you want to rethink how you do things.

Concentrating on results and not people in chairs is the best way to do it. You also want to review how your team works. Here are a few suggestions to increase productivity even more:

  • Drop unproductive meetings.
  • Let workers work remotely.
  • If you schedule meetings, set a start and end time and don’t put them in the middle of a day.
  • Use messaging platforms like Slack to communicate.
  • Fine-tune your job descriptions and responsibilities.
  • Revise your review platform so you focus more on productivity and results goals.

You’ll find that by taking these steps you set up an environment where your staff is more rested and relaxed and prepared to work hard during the four days they are on.

Final Thoughts

So, does a shorter working week make employees more productive? It seems that it indeed might.

Employees can use their extra day off to run errands, go to appointments, and feel less stressed and more refreshed.

With a few less hours in the office, you might just find they are more productive and energized. They need fewer breaks and time off because you’re actually giving them the time off they need.

Work life balance improves, and with a shorter working week, so may your startup’s overall productivity.

Ready to give it a try? Set a time frame for your experiment and see if you have the same great results as businesses the world over.

Are you a new startup ready to succeed? Are you looking to get your new business off the ground and watch it rise to success? We are here for you. We can help answer your questions and guide you through the process. Outsource your HR duties, finances, payroll and more to us. Contact Escalon today to get started.

Image: Emma Matthews Digital Content Production on Unsplash

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Accounting & Finance

The Role of Accounting Software in Simplifying Audit Prep  

If you have ever spent the weeks before an audit digging through spreadsheets, chasing down receipts, or reconciling accounts that should have...

Taxes

The SMB Owner’s Audit Preparation Timeline: 90 Days Out 

Three months before your audit starts is when you should begin serious preparation, not three days. Yet many business owners...

Taxes

The Cost of Waiting: Why Proactive Voluntary Disclosure Agreement (“VDA”) Filing Almost Always Beats an Audit 

Unaddressed, historical state tax exposure is often an outgrowth of being focused on building a company and not properly keeping track of  an expanding state and local tax footprint. The exposure accumulated as the...

Taxes

R&D Tax Credits for Non-Tech Companies: Are You Missing Out? 

When most business owners hear "R&D tax credit," they immediately think of software companies and biotech firms. This narrow perception costs non-tech businesses billions...

Taxes

5 Business Triggers That Should Prompt an Immediate Nexus Review 

There is a persistent myth in the world of state and local tax compliance that a nexus review is something...

Accounting & Finance

The SaaS Rule of 40: What It Means and How to Achieve It 

If you're running a SaaS business and talking to investors, you've probably heard someone mention the Rule of 40. This simple metric has become a...

Accounting & Finance

Common Audit Findings in SMBs and How to Avoid Them 

Nobody enjoys finding out that their financial audit uncovered significant deficiencies. Yet according to data from the Center for Audit...

People Management & HR

The True Cost of Employee Turnover: How to Calculate and Reduce It 

Employee turnover represents one of the most significant yet often underestimated costs facing American businesses today. While most business owners recognize that...

Accounting & Finance

SaaS Revenue Recognition: Mastering ASC 606 Compliance 

Revenue recognition might not be the most exciting topic at your next board meeting, but get it wrong and you'll have far bigger problems than a...