Employer of record (EOR) provider Peak PEO has been moving to a four-day working week model since 2023 and introduced a genuine three-day weekend (rather than a compressed working week) last year. With interest growing, its CEO Alex Voakes outlines just how transformational it has been.
There is no doubt that the four-day working week is gaining traction, both among employers and employees.
Four-day working
London Tube drivers vote for TfL’s four-day week plan
In the UK’s largest four-day working week trial, of the 61 organisations that took part 54 are still operating the policy a year later, and 31 have made the change permanent. In addition, according to research from Flexa, 48% of people looking for jobs now want a four-day working week. I am not surprised by this, and expect the figure will be far higher in another 12 months or so.
Despite its rapid rise, the move continues to split opinion. A quick Google search will show how the four-day week has transformed employee engagement and wellbeing, boosted productivity and led to a better work-life balance at businesses around the world.
As a result, employees experience reduced stress, with more time for personal activities, family, and hobbies. Some companies are also reporting huge cost savings related to reduced operational expenses and increased efficiency. On the flip side, some employees are reporting that they are working longer during their four days at work to compensate for the reduced time and experiencing burnout as a result.
At Peak PEO, we have been implementing a four-day working week in some form since 2023. Back then, we first called the policy ‘Ultra-Flexible Fridays’, which meant that my staff had Fridays to dedicate to work if it desperately needed doing or could instead spend the day doing whatever they wanted.
This worked – to an extent – but I noticed that staff, especially senior members of the team, were still online on Fridays monitoring emails and messages.
Fast forward to October 2024, and we implemented a true four-day working week where an additional day off is viewed in the same way as a Saturday or Sunday would be. To be clear, when referencing a four-day working week, I am not referring to a week in which employees painfully compress their hours across four days so that they can have a fifth free. Instead, I am talking about a ‘true’ four-day working week, with no additional hours or reduction in pay.
So, what have we noticed at Peak following our decision to implement the four-day working week?
Happier, healthier employees
The biggest benefit of a four-day week for us, by far, has been an increase in employee engagement, wellbeing and productivity levels across the whole team.”
In the early 1990s, the sociologist Ray Oldenburg coined the term ‘the third place’, which describes a familiar public spot, away from work and family, where you can regularly connect with others known and unknown, over a shared interest or activity. These places offer a sense of connection and are important for our wellbeing and overall happiness.
Yet, how many people can honestly say that they regularly visit a third place when cramming chores and general life admin into the weekend? How many times have we all cleaned the house, put the washing on and done the weekly food shop only to realise the weekend has evaporated before our eyes and it’s Monday once again?
With this in mind, the biggest benefit of a four-day week for us, by far, has been an increase in employee engagement, wellbeing and productivity levels across the whole team. By giving our staff a three-day weekend, they have more free time to visit their third place and do things that they enjoy, be it language learning, running, reading or spending more time with family. As a result, they come to work feeling refreshed and with renewed energy to tackle the week ahead.
Contributing to the community
One unexpected benefit of the four-day working week that we found in the long term was that some of our staff are now spending their days off volunteering which is improving their self-esteem, confidence and overall wellbeing.
One of our team members regularly gives up his time on his day off to give technology support to elderly people”
For example, one of our team members regularly gives up his time on his day off to give technology support to elderly people and another volunteers at a dog rescue charity.
The other aspect worth considering is that our employees are helping others, and making a positive contribution to the local community. This allows often vulnerable people to connect with individuals, build relationships, and feel a stronger sense of belonging.
Boosting recruitment and retention
Because our employees feel valued, engaged and motivated, we have an extremely low staff turnover rate. When we compare our own figures with the UK national average of 35%, which means that more than one-third of employees leave their jobs each year, it really hits home and I am so proud of the culture we have created here.
Because our employees feel valued, engaged and motivated, we have an extremely low staff turnover rate.”
In addition, when listing job vacancies referencing a four-day working week as a benefit, we have found that the quality and quantity of candidates applying increases tenfold. This means that businesses, no matter the industry or sector, can recruit the brightest and best candidates which is particularly important in today’s world as the UK job market is experiencing a slowdown with skills shortages and reduced economic confidence.
To summarise, we have been operating within the constraints of a five-day working week since the 1900s, and now we are well into 2025, something needs to change.
People, in their public and private lives, are under more pressure than ever and mental health issues are increasing.
We all want our employees to be healthier and happier, and in return, boost our businesses, so we need to start treating them like the adults they are and trusting them to get on and do their jobs. Overlooking this long-overdue and heavily in-demand discussion will not make the idea go away.
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
Latest HR job opportunities on Personnel Today
Browse more human resources jobs
