In the past few years, employees and job seekers have put increasing emphasis on improving their work-life balance. Remote and hybrid work arrangements have proved a boon in this area, and, for many, they’re now a must-have.

Workers are also finding value in having more flexibility in their daily and weekly schedules, such as the freedom to choose nontraditional office hours or windowed work . More recently, an even greater shake-up of the social contract between workers and employers has been gaining traction: The four-day workweek.

It’s not a completely new concept. In 2018, a Robert Half survey found that the four-day workweek was the second most sought-after perk after flexible hours. Interest in the model has since spiked as more businesses attempt to promote their flexibility.

Governments have gotten involved, too. For example, in 2022, Belgium became the first country in Europe to legislate for a four-day week, and other countries, including Scotland, Wales and Portugal are part of the growing global movement to transition to a shorter workweek. Several U.S. states are also moving in that direction.

Thus far, however, the four-day workweek can’t be considered a widespread trend — yet.

What is the four-day workweek, and is it a fit for your company?

In a nutshell, the four-day workweek means employees can clock in four days a week instead of the usual five. Whether people work Monday through Thursday or Tuesday through Friday, every weekend becomes a long weekend. In theory, this gives people more time to devote to their personal responsibilities and interests, improving their work-life balance.

There are two models of the four-day workweek. One, often referred to as a “compressed workweek,” allows employees to squeeze their usual 40 hours of work into just four days, typically working 10 hours per day. In the other format, employees clock in for a total of just 32 hours spread across four days for the same pay.

The four-day workweek: potential benefits

Companies might want to consider the four-day workweek for several reasons. For example, the strategy can help them to:

Attract top talent and bolster retention

By far the greatest advantage for employers of a four-day workweek is that it can be a powerful recruitment and retention tool for those willing to offer it. The prospect of extra personal time, coupled with an innovative and flexible work culture, can be a magnet for top talent.

It can also foster loyalty among current employees who may view the added flexibility as a sign of a company that cares about its people and their work-life balance.

Fuel productivity

There’s plenty of evidence that a happier workforce is more productive. When Microsoft experimented with the four-day workweek in Japan, giving its entire workforce five Fridays off in a row without decreasing pay, the tech giant reported a 40% surge in productivity.

Employees who work fewer days may feel more refreshed and motivated, translating into better focus and output during their hours on the clock.

Boost wellness and fend off burnout

Another draw of the four-day workweek is its potential to enhance employees’ mental health.

The extended weekend gives them time to stave off the job burnout that can accompany a five-day schedule. The potential result? A healthier, more engaged and more resilient workforce.

Trim costs

For employers who have called their workers back to the office after an extended period working from home during the pandemic, the four-day workweek can result in some tangible savings for both the company and the employee.

Firms that choose to shut down their offices entirely for one day per week could reap savings from decreased maintenance and utility costs. Those opting to stagger their employees’ days off may achieve cost benefits through reduced absenteeism, lower turnover and increased productivity.

For employees, a four-day week can translate into less expenditure on commuting and childcare. Beyond the monetary savings, less commuting also means a smaller carbon footprint, helping companies hit their sustainability goals.

The four-day workweek: potential pitfalls

While there are clear benefits to adopting a four-day workweek model, employers must also consider the potential challenges:

Coverage gaps

A critical factor to consider is your team’s availability, especially if you serve customers who expect five-day coverage or if your operations require consistent support across departments.

While one solution could involve splitting your workforce’s off-days (half working from Monday to Thursday and the other half from Tuesday to Friday), this requires careful planning and coordination.

A dip in productivity instead of a gain

A four-day workweek doesn’t automatically guarantee that productivity will skyrocket.

If the 10-hour day/40 hours per week model is adopted, some people’s personal work style and stamina might make it tough for them to put in the required 10-hour workdays in a compressed week — potentially leading to a drop in performance.

Some employees might end the week feeling more drained than they did with a traditional five-day workweek. It makes for a long day, especially if the employee is required to work in the office and faces a long commute.

Compliance with overtime laws

Some jurisdictions may require you to pay overtime rates to workers exceeding eight hours in a single day, even if the total weekly hours stay at 40. Before implementing a four-day workweek, be sure to check your state and federal overtime laws.

Potential pay inequity

Most companies greenlighting the four-day workweek concept pay their employees at the same rate earned when working a 40-hour week. To help ensure everyone is treated fairly, employers who offer a 32-hour workweek at the same pay must offer it to all employees. (It’s not exactly a freebie for workers, though. The still have to get all the work done in 32 hours that they used to have 40 hours to handle!)

The four-day workweek can be a game-changer for companies looking to attract and retain talent by improving employees’ work-life balance. But it’s not a decision to take lightly.

Weigh the potential benefits against the challenges and keep in mind that what works for one company might not work for another. Evaluate your specific circumstances, corporate culture and staffing needs to determine whether this model makes sense for your organization — and your employees.

Are you up to date on the latest compensation trends for your profession? Check out Robert Half’s Salary Guide to get details on salaries, benefits and perks.