Perpetual Guardian to test four-day week

Thursday, 8 February 2018

A three day weekend would allow you more time to do things like this.

We could all use a long weekend from time to time, but what if you had one every week?

In March, trust company Perpetual Guardian will launch a six-week trial where its full time staff will work for four days a week but still be paid for five days.

Employers and Manufacturers Association chief executive Kim Campbell says Perpetual Guardian has taken on an 'expensive experiment'.

If successful, the company will implement the policy permanently from July 1.

Perpetual founder Andrew Barnes said the idea behind the four-day week was to increase productivity and start a conversation that challenged the traditional working week.

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Andrew Barnes, founder of NZ's largest corporate trustee company, Perpetual Guardian, says the four-day work week would provide greater productivity.

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Barnes wants to change the traditional working week model of having Saturday and Sunday as days off.

Four-day weeks could mean employees might have to work weekends and take weekdays off, he said.

The hours would not be compressed - workers would work 32 hours instead of 40 hours.

All employers faced the challenge of providing their employees with a work-life balance to ensure their performance levels were strong, Barnes said.

'Employees live very different lives today. They are single parents, or both working parents, and most of all they want a life outside of work too,' he said.

'Employers have the responsibility of thinking about the health and well being of their employees.'

According to findings from the New Zealand Productivity Commission, innovative firms grew on average at a faster rate than those that did not, but productivity remained the same.

This is in contrast to numerous international studies which show innovation is a key driver of productivity growth.

Germany and the Netherlands already have 32-hour work weeks.

But Employers and Manufacturers Association chief executive Kim Campbell said he was sceptical about Perpetual Guardian's trial.

'It's an expensive experiment if you ask me,' Campbell said.

He said it could be a big cost for businesses if productivity was not met.

'If a business is well funded then go for it. Trial it, good luck,' Campbell said.

Barnes said the results would provide a better understanding of whether this could be plausible in New Zealand too.

He said the trial had attracted a lot of interest from other employers.

'I'm very committed to this, and I really hope that the trial works in proving that you don't have to work five days to be productive.'

Barnes said with technology and artificial intelligence threatening many jobs, a shorter but more productive week would allow businesses to get the most out of their workers.

Jarrod Haar, professor of human resources management at Auckland University of Technology, said the shorter week could benefit businesses in the long run by reducing employee turnover, as more workers would be satisfied with their jobs.

National Secretary for E tū union Bill Newson said enforcing a four-day week nationally was complex as it also raised questions around overtime pay, sick leave provision, statutory holidays and annual leave accumulation.

'These are all issues that have to be identified and agreed on so that there's no argument further down the track when people move to a four-day week,' Newson said.

'But assuming all of those issues and others are recognised and agreed to, then the attraction of a three-day weekend is compelling.'

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