As the buzz around the four-day work week reaches fever pitch, businesses must carefully consider the full implications that such a work model could bring. Though promising, research on the benefits of the four-day work week on productivity and work-life balance don’t apply to businesses across the board.
For small businesses in particular, this model triggers several unintended consequences that seriously raise the question: could the four-day work week do more harm than good?
For starters, its implementation could exacerbate existing disparities between small businesses and employees of larger corporations.
Large corporations typically possess the financial means to implement and maintain a four-day model without compromising on operational efficiency. In contrast, smaller businesses may struggle to sustain their operations under this system, potentially leading to reduced productivity, delayed outcomes, and financial strain.
As a result, these businesses may be forced to make difficult choices, such as not paying themselves, cutting employee benefits or downsizing their workforce.
This outcome is already the reality for many small business owners who are struggling to survive in a slowing economy. Post-lockdowns, small businesses are facing cash flow issues, insolvency, and lack of market demand in record numbers.
One of the most significant concerns about the four-day week lies in the availability of talent for small businesses. If larger enterprises offer a shorter work week for the same pay and benefits, attracting skilled workers to small businesses would become increasingly challenging.
And yet without small businesses, the economy would suffer. It’s a little-known fact that 97.5% of all businesses in Australia (or around 2.5 million) are small businesses. Small businesses contribute $506 billion to the economy, equivalent to a third of the nation’s GDP.
Another aspect to consider is the increased burden placed on small business owners. Business owners don’t enjoy the same perks and benefits as employees of larger corporations, but they regularly work 60-80 hour weeks.
More competition for skilled workers between small businesses and businesses at the larger end of town means there is less support for struggling small business owners.
Workers who dismiss small business employers out of hand will also miss out on the growth opportunities and skill development inherent to the flatter company structure of a small business.
While advocating for a fair and balanced approach to a four-day work week, it is crucial to consider the potential ramifications it could have on the overall labour market.
As we explore new ways to enhance the workforce’s wellbeing, we should remain cautious about models that make it more difficult to strike balance in the delicate business ecosystem.
Policymakers, business leaders, and employees must engage in thoughtful dialogue to identify solutions that can preserve the vitality of small businesses while promoting a healthy work-life balance for all employees. Most importantly, the concerns of small businesses must be addressed in order to preserve their valuable contributions to the economy and community.
Amanda Rose is the founder of Small Business Women Australia.
Amanda Rose is the founder of Small Business Women Australia, Western Sydney Women and Western Sydney Advisory. She has also been named as one of the most influential people in Western Sydney.
