If you're interested in switching to the 4-day work week model, you might have concerns about how it could affect your pay. Since your salary is one of the most critical aspects of your job, it's essential to understand how a 4-day work week would affect your income.
A 4-day work week doesn't mean less pay. Most often, employees work around 32 hours weekly and receive regular salaries. You should consult your employer if you have concerns about your salary.
Understanding how a 4 day work week may affect your pay is essential. Luckily, this article will discuss this topic in greater detail, so keep reading to learn more!
Why Most Salaries Stay the Same in a 4-Day Work Week
It makes sense to think that your salary would decrease if you switched to a 4-day work week because you're essentially working fewer hours for the same amount of money.
But as I've already mentioned briefly, it's common for salaries to remain the same if companies switch to 4-day work weeks. The main reason is that employers want to keep their employees happy and working hard, so keeping their pay at the same rate is the best option.
Plus, many employees will have signed contracts with agreed-upon salaries, so it might be difficult for employers to decrease the pay.
Below, I'll discuss some main reasons salaries stay the same in a 4-day work week.
To Increase Employee Retention and Satisfaction
Nowadays, there are so many job opportunities available in different sectors. Therefore, employers want to be competitive and offer job seekers and current employees the best possible offer.
Switching to a 4-day work week while keeping the pay the same is one excellent way to retain valuable employees and keep them satisfied. If the income were to decrease, many employees wouldn't see the point in moving to a 4-day work week. They might even end up getting a better job somewhere else.
To Attract New Employees
Employers like to keep the pay the same when moving to a 4-day work week because it makes it easier to attract new, valuable employees. People will be more willing to apply for a position if they only have to work 4 days a week but can still earn a typical five-day salary.
To Motivate Employees
Decreasing pay when moving to a 4-day week could cause some employees to become annoyed. According to a study by Eurofound, not being paid enough can demotivate employees, meaning they don't work as hard and might fail to meet deadlines.
Also, many low earners already feel like their employers aren't compensating them fairly, so further decreasing the pay could cause workplace issues. This perception of fair compensation is one of the reasons why income often remains the same after transitioning from a 5-day week to a 4-day week.
To Adhere to Employee Contracts
As I briefly mentioned, most employees sign contracts when they start a job. Unless stated otherwise in the agreement, it's unlikely that your employer can decrease your pay because it would go against the contract.
However, when the contract runs out (or if there are no salary agreements), your employer could legally change your salary (although it's unlikely they will).
According to the Texas government website, employers must live up to the promises given to employees concerning pay rates. Laws can differ between states, so check your state's laws (and your employment contract).
Do You Keep Your Benefits in a 4-Day Week Job?
You can usually keep your benefits in a 4-day week job. The idea of a 4-day week job is to allow employees to keep their benefits and salary while giving them more free time to spend with family and friends (or to spend time on other things, such as hobbies).
So, if your job gives you benefits, you'll most likely get to keep them. Some examples of benefits you should be able to retain:
Health insurance
Retirement plan
Paid vacations
Free or paid training
But of course, whether or not you can keep your benefits will depend on your employer. So, it would be best to speak with them to learn more about how the change will affect your benefits.
Can Your Pay Decrease When Changing to a 4-Day Week?
Your pay can decrease when changing to a 4-day work week, but generally, it's not the case. This new initiative aims to keep the income the same to keep everyone happy. If the employer decided to decrease the wage, it wouldn't be worth it for many employees, and they might choose to get another job.
However, it's important to note that money is generally not the primary driver of happiness and satisfaction among employees (although it certainly helps). The company's culture is one of the most critical factors for many employees and is often more important than salary, particularly among higher earners.
It's unlikely for your employer to decrease your pay when switching to a 4-day work week because it would somewhat defeat the purpose in the first place.
Why Do Some Companies Offer 4-Day Work Weeks?
Now that you know most salaries remain the same after switching to a 4-day work week, you might want to understand why companies allow them. When you think about it, it seems like a way for companies to lose money while employees earn the same amount for doing less work.
However, a 4-day work week has many benefits. Below are the main reasons that some companies have begun offering them.
A 4-Day Work Week Offers a Better Work-Life Balance
People are becoming more concerned about having a healthy work-life balance in recent years, and a 4-day work week is one excellent way to achieve a nice balance. When people have an extra day off, they can spend that time recharging and doing things they enjoy.
And since most people who switch to a 4-day work week continue receiving the same salary, they don't have to worry about earning less money. So it's a great way to make employees happier by giving them more personal time without money loss.
A 4-day work week is convenient for workers with kids who want to spend more time with them but find it difficult due to a long work week.
When people are overworked, they're less inclined to:
Take care of their health (mental and physical).
Set boundaries between home and work.
Feel competent at their job.
So, giving people an extra day off is a way for them to take better care of their health, and it can also give them more confidence about their job performance since being overworked can make people feel incompetent.
Employees Are Happier
When people switch to a 4-day work week and continue to earn the same amount as they would if they were working 5 days, they tend to be happier and more fulfilled.
They're working less, earning the same amount of money, and have more time to do the things they enjoy the most. And when employees are happier, they're more motivated to work and do a good job. Hence, employers get better results from their employees.
According to an article by Forbes Magazine, a company with happy employees is highly productive. And even though a high salary or shorter work week isn't the main thing that makes employees happy, it certainly helps! But it's also important to remember that engagement and inclusion are significant for employee happiness and motivation.
Lower Electricity and Maintenance Costs
Another reason some companies offer 4-day work weeks is that it can help lower costs, such as electricity and maintenance costs. That's because when there is no one at work, there is no need to use any electricity in the building.
Things like lights, heaters, and computers are not active. The savings can quickly add up after moving to a 4-day week, so it's certainly an enticing idea for many employers.
Good Publicity
Since 4-day work weeks aren't the norm in the United States (yet), companies are likely to get good publicity for adopting such schedules.
A company willing to let its employees work one less day for the same salary will be looked at favorably by the general public. It shows that the company respects its employees enough to give them a better work-life balance.
But that's not the only reason the employer would get good publicity; switching to a 4-day work week will also help the environment by decreasing the need for transport and high amounts of electricity.
And as you may know, environmental concerns are becoming more prominent in recent years, so this is another aspect that would garner positive publicity and attention.
Does a 4-Day Week Mean Longer Hours? (PAA)
A 4-day week doesn't always mean more extended hours. It generally means a 32-hour work week, with 8-hour shifts making up the 32 hours. However, some employers might want to stick to a 40-hour work week, meaning the days would be longer.
For example, some employees may have to work 10-hour shifts, but this is generally not the case. In almost all instances, a 4-day work week still entails 8-hour shifts.
If your employer offers a 4-day work week but wants you to continue working 40 hours a week, you will receive the same pay (i.e., your salary shouldn't decrease).
Does a 4-Day Work Week Mean Less Vacation Time?
A 4-day work week generally doesn't mean less vacation time, so you shouldn't worry about losing out on paid days off.
However, you should check with your employer because they might change your benefits (although it's unlikely if your employer states them in your contract).
When you switch to a 4-day work week, you should still receive the same amount of vacation days unless your employer states otherwise.
Is a 4-Day Work Week Worth It?
A 4-day work week is worth it when the pay remains the same, and you don't have to work longer hours. You're getting the same salary for less work and more personal time, so there's no reason why a 4-day work week wouldn't be worth it (unless you have to do longer days).
Here are the main reasons why a 4-day week is worth it:
You get the same pay for doing less work in most cases.
You get to spend an extra day doing the things you love.
You have more time to rest and recharge.
You will be happier and more motivated when you are at work.
You likely won't mind working as much.
The weekend doesn't come and go as quickly.
A 4-day work week decreases transport costs.
Does a 4-Day Work Week Affect Daily Rates?
If you earn an annual salary, your pay is unlikely to change as you transition to a 4-day week. However, if you make a daily rate (for example, if you're a contractor), you may earn less due to the lost day each week.
But you might be able to negotiate a pay rise to make up for the lost day, so it's always good to speak with your employer if you're on a daily rate and unsure how it'll affect you.
According to Investopedia, daily rates are most common in jobs with specific projects (for example, the construction industry). They can also apply to people who work for companies as freelancers. If any of these positions apply to you, you may need to negotiate a higher daily rate when moving to a 4-day week.
Conclusion
A four-day work week generally doesn't mean less pay; it also usually doesn't mean more extended hours. In most cases, employees work fewer hours (32 a week) and earn what they typically earn when working 40 hours.
Some companies are introducing 4-day work weeks to improve employee motivation and well-being. A contented workforce is productive—it stands to reason the employer will reap financial rewards from the changeover.
Shorter work weeks give people more free time without sacrificing part of their income, and they can save employers money by reducing energy costs.
