Should Your Nonprofit Implement a Standard Four-Day Workweek?

President Franklin D. Roosevelt signed the 1938 Fair Labor Standards Act (FLSA) into law. While it originally established a 44-hour workweek, the FLSA transitioned to the current five-day, 40-hour workweek by mandating overtime pay after 40 hours in 1940. In recent years, the standard workweek has been scrutinized, paving the way for some companies to institute a four-day, 32-hour workweek.

Major companies, like Panasonic, Kickstarter and ThredUp, are increasingly exploring four-day workweeks. But it’s not just happening in corporate America. Nonprofits, including Minneapolis-based Arts Midwest; Common Future in Oakland, California; and Atlanta’s New Disabled South, have implemented four-day workweeks, with the help of WorkFour, a nonprofit advocating for the four-day workweek.

The 100:80:100 principle that 4 Day Week Global, the advocacy group promoting this shift, developed believes employees can maintain 100% of their productivity in 80% of the time — while receiving 100% of their regular pay.

When considering whether a four-day workweek is right for your nonprofit, understand that there are pilot studies examining the implementation of four-day workweeks in the United Kingdom, Spain, Portugal, South Africa, Belgium, Iceland and Sweden. Early results show shorter workweeks can reduce burnout and stress; promote improved sleep; increase exercise; create a new sense of wellbeing; and lower business expenditures. It could also be a wonderful recruiting tool for individuals that desire more time off each week.

Microsoft tested a shorter workweek in Japan where the company reported a 40% increase in employee productivity. Microsoft founder Bill Gates even thinks a three-day workweek is in our future due to the creation of artificial intelligence.

In March, U.S. Rep. Mark Takano of California introduced The 32-Hour Workweek Act to establish a standard 32-hour workweek in America with no loss in pay. Sens. Bernie Sanders of Vermont and Laphonza Butler of California co-sponsored a similar bill in the Senate. Neither bill has made any progress since its introduction when each was referred to committee in its respective chamber of Congress. The bills slowly reduce the 40-hour workweek by two hours weekly over the course of four years after its signed into law, culminating in a 32-hour workweek.

Nonprofit Case Studies on the Four-Day Workweek

Here’s a look at how others in the nonprofit sector are implementing eight-hour, four-day workweeks.

My Own Experience

Until the latest four-day workweek movement, a four-day workweek in the U.S. was usually defined as four days consisting of 10 hours of work each day. The days of the week may differ, but the cumulative effect is four days on and three days off in a seven-day week.

My nonprofit employer offered employees the chance to work a four-day workweek over two years ago. I accepted that offer. I enjoy working 10-plus hours a day, so the change to a four-day workweek was perfect for me. The only downside to this scenario is over time, I have been called to work either for part or all my Friday, aka my day off, to attend special meetings and activities. Though the four-day workweek system is not perfect, I do enjoy my three-day weekend to recharge, relax, catch up and enjoy life to a greater degree.

Feathr

Nonprofit marketing software provider Feathr moved to a 32-hour, four-day workweek during the pandemic in 2020. To offer customers flexibility in payments while avoiding employee layoffs, the company decided on a 20% pay cut for employees to weather the storm. To make the salary reduction more palatable, the team also reduced employees’ hours by eight hours, giving employees off each Friday.

“As our industry began adapting and recovering, we knew we would soon be able to resume full pay, but we also noticed how much employees seemed to be benefiting from having the extra day off — so we decided to keep that part,” the company shared in a blog post last year. “On Jan. 1, 2021, we returned to 100% compensation for all employees and made the permanent switch to four-day workweeks.”

Arts Midwest

Two years ago, Arts Midwest, an organization that supports local arts and culture efforts via grants in nine Midwest states and the Native Nations, introduced a four-day workweek to nurture creativity instead of burnout.

The transition started as a six-week trial in 2021, but a rocky rollout resulted in many team members needing to continue working during the trial. At the end of the trial, the organization returned to five-day workweeks, but tried again the next year with more advanced planning, monthly check-ins and a six-month trial to allow more time for adjustments.

At the end of the trial 90% of staffers reported feeling more creative, and voluntary staff turnover dropped from 23% in fiscal year 2022 to 0% the next fiscal year.

“Between 2022 and 2023, we launched new programs, introduced a new brand and website, implemented new technology, and continued to invest in the professional development of our team, all without disrupting our regular activities,” the organization shared in a March blog post. “These results made it clear that our team could continue to meet the needs of our constituents within a four-day workweek. And to our delight, many constituents told us they were interested in learning more about the four-day workweek.”

How to Test a Four-Day Workweek

The Harvard Business Review shared key steps to follow when evaluating whether a workweek should be changed from five days to four days.

• Shift your mindset. Focus on success metrics, such as actual productivity.
• Define your goals and metrics. Make sure leadership and staff are on the same page.
• Communicate internally and externally. Be clear why the organization is testing a four-day workweek while assuring employees that their needs will be met, and how to effectively continue their work.
• Run a pilot. This will allow the organization to finetune a new implementation plan.
• Assess the pilot. Evaluate qualitative and quantitative information, productivity comparisons and data from various perspectives.
• Scale up but do not stop iterating. Take steps to make the change permanent regarding a new four-day workweek.

Only time will tell if the four-day workweek becomes commonplace throughout the nonprofit sector. For many organizations, a four-day workweek could be an excellent choice.

The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.