Topline: Microsoft’s Japan office experimented with a four day workweek in August, resulting in a 40% productivity boost, with over 90% of employees reporting they preferred the shorter week—which aligns with previous studies that show greater work-life balance makes for more productive employees.
- In addition to a burst of productivity, Microsoft Japan reported it used about 23% less electricity and printed around 59% fewer pages during the experiment.
- Microsoft Japan will conduct a second experiment over the winter and will encourage more flexible working, but it won’t include the shorter work week.
- But previous studies show that giving employees more flexibility increases productivity; a New Zealand company permanently adopted the four day workweek in 2018, after a trial resulted in a 24% productivity increase.
- The Harvard Business Review reported that a Chinese travel agency experienced a 13% productivity boost when it allowed call center employees to work from home.
- In the U.S., a 2017 Stanford University study found the average worker is willing to give up 20% of their pay to avoid their schedule being set with short notice, and 8% of their pay in exchange for the option to work from home.
- A work-from-anywhere program for patent examiners at the U.S. Patent and Trademark Office showed productivity gains of 4.4%, according to a 2019 working paper by the Harvard Business School.
Big number: 80 hours.That was the length of a required workweek for 25% of Japanese companies in 2016, according to CNBC.
Key background: Japan’s culture of overwork first made headlines in 2015, when a Dentsu employee died by suicide on Christmas Day after working excessive overtime, and again in 2017, when a Japanese reporter died after clocking 159 hours of overtime the month before her death. Since then, prime minister Shinzo Abe has introduced “workstyle reform” to Japan, including an annual cap of 720 overtime hours per person. Although workstyle reform’s intent is to get big companies to improve their productivity internally, the Japanese government acknowledged the burden of overwork might be passed onto small and medium businesses as a result.
Surprising fact: As a result of their brutal working culture, the Japanese coined the term “karoshi,” meaning “death by overwork.”
Tangent: Despite studies that show benefits to the four day workweek, it’s not universally favored by executives. Some owners have employees work on Friday when there’s a holiday the following Monday. Others have reduced vacation time to make up for the extra weekly day off. And one Portland, Oregon tech firm experimented with a four day workweek before returning to a five day schedule, because the owner realized a shorter week meant its competitors had a leg up.