Starting this January, the U.A.E. will move to a 4.5-day work week. The change will directly impact federal entities like state banks and schools. Private companies will be able to select their own work week, though it is likely that many will adopt the new 4.5-day work week.

With this change, the UAE joins a group of nations trialing variations over how workers can spend their productive hours. Examples of pilots include that of Spain where volunteering companies will be paid to test a 4-day, 32h-work week. New Zealand Prime Minister Jacinda Ardern and Finland Prime Minister Sanna Marina have also pushed for flexible work options.

One country that stands apart from others that have tried the reduced work week is Iceland. Its 2015-2019 experiment with reducing the work week to 35 hours (from 40h) was so successful that 86% of Iceland’s workforce has now moved to shorter hours for the same pay or has the ability to do so. The success inspired a similar policy move in Scotland, and has helped the idea gain traction amongst progressive lawmakers in the US.

Even Asian countries, traditionally known for their long working hours, have begun experimenting with shortened work weeks. The Philippines has been incrementally implementing a reduced work week as a result of COVID, first in its government offices and then in its courts. Japan went a step further last June by encouraging firms to offer an optional 4-day work week to their employees as part of its annual economic policy guideline. Even China, famous for its 996 work culture, may be in for serious change. Several provinces have already extended weekends by half a day, and last September China’s top court and labor ministry issued a statement declaring 996 schedules illegal.

The economic benefits of a flexible work week could be substantial, with one study estimating it could add up to $10 trillion to the global economy by 2030. The average American employee wastes an estimated 2.09 hours every day – excluding lunches and scheduled break time. Another study of UK employees found that the average worker was only productive for about three hours each day. If the same level of output can be achieved while cutting out these wasted hours, companies can expect to both boost productivity and save on overhead costs. Microsoft Japan’s 4-day workweek trial increased productivity by 40% and reduced electricity costs by 23%, for example.

Flexible working arrangements can also go a long way to improving workers’ welfare. Time poverty (defined as the inability to do everything one wants to do) can be a greater detractor from happiness than unemployment. Providing workers to the flexibility of time can thus boost both productivity and happiness. It may also help with worker retention. Data suggests millennials are particularly attuned to this, with 92% of them prioritizing flexible work arrangements when looking for jobs. Retaining them with flexwork would reduce a millennial turnover that is estimated to cost the U.S. economy $30.5 billion annually.

Companies looking to implement a reduced work week should anticipate and embrace a company-wide cultural shift. Part of this means accepting that the new culture might not work for everyone at first. Proactively identifying the concerns of employees and of customers will also enable employers to manage expectations and plan a successful rollout. Utah’s 4-day workweek for state workers had to be scrapped in 2011 partly because residents complained about the lack of service on Fridays.

The pandemic has upended our preconceived notions of what the typical work week looks like. And while arrangements like the 4-day work week are far from universal, it is likely that we will see more experiments with the concept in the near future. Companies should pay attention to this ongoing movement. They might have something to gain from it, as will their employees.

Can Less Be More? Reducing The Work Week