Why do 30 percent of Australians predict a four-day workweek?
Last updated on 31 January 2024
- More than one in four Australian workers believe it will be normal to have full flexibility over hours in five years
- 11 percent of Australian workers said their employers now offer a four-day week to help support mental health in the workplace
- Aussie workers also predicted significant changes to workplace entitlements like annual leave
A new report from the ADP® Research Institute has been released, echoing previous research conducted by the Swinburne University of Technology, about the value of a four-day workweek at the workplace.
The survey, People at Work 2023: A Global Workforce View, explored employees’ attitudes towards the current world of work and what they expect the future of Australia’s work culture to look like.
Over 1,400 Australian workers provided their insight to leading HR and Payroll solutions provider ADP and 30 percent reported that a four-day week will be the norm in their industry within the next five years.
Additionally, 11 percent said their employer already offers four-day workweek arrangements as a means of promoting positive mental health at work, a trend that has increased by 8.6 percent since last year.
Managing Director ANZ at ADP Kylie Baullo said the four-day workweek was no longer a distant dream for many, as it has gradually become a real approach to employee satisfaction.
“When traditional approaches like pay rises or offering remote work arrangements are not feasible, employers should explore innovative ways to ensure employee satisfaction, loyalty, motivation and talent retention. They need to think outside the box,” she said.
“A four-day working week could be a favourable solution for both employers and employees. If a four-day working week aligns with business needs, enabling workers to achieve a better work-life balance without compromising productivity, this will result in a mutually beneficial outcome for all.”
For those considering partial retirement, to supplement their pension with additional private income at work, the prospect of a four-day workweek could incentivise employees to stay longer.
A pensioner can receive an amount of private income before their pension rate starts to reduce, which is known as the ‘income-free area’ which, from July 1, 2023, is $204 for single-rate pensioners and $360 for couples [combined]. For each dollar of income above the income-free area, the single pension is reduced by 50 cents.
The ADP Research Institute also found that workplace incentives were predicted to become more commonplace, as per feedback received from the worker survey participants.
Of these expected changes 13 percent of Australian workers believe that in the next five years, it will be the norm to purchase additional holiday allowance. One in eight also reportedly thought that workers would soon have the option of reducing their salary in exchange for more annual leave.
The Australian Bureau of Statistics reported that approximately 28,100 retired workers, between the ages 45 – 66, in 2020 – 2021 reported that they had left their job due to ‘ unsatisfactory work arrangements or [wanting] to work part-time.’
“Numerous businesses are already reaping the advantages of this change. The fact that an increasing number of companies are utilising a four-day week as a means to enhance mental health [and] well-being highlights the significant transformations in the workforce over the past few years,” Ms Baullo said.
In October 2023, to address workforce shortages in the aged care sector, HammondCare Chief Executive Officer Mike Baird said that retirees could be an untapped pool of potential recruits, if not for the Age Pension penalty.
The CEO said pensioners would lose approximately 50 cents of their fortnightly pension for every dollar earned over the income threshold. Working too much over consecutive fortnights could lead to the pension quickly reducing and reinstating the pension would be never as quick, according to the CEO.
With 42 percent of Australians returning to the labour force after retiring because of ‘financial needs’ — Mr Baird’s message was met with applause at the Aged and Community Care Providers Association National Conference 2023, held in Adelaide on October 25 – 27.
Both expert opinions mirror concerns of workforce shortages and employee retention, noted upon release of the latest Intergenerational Report, which found that the national paid workforce participation rate was expected to dip from 66.6 percent to 63.8 percent by 2063.
Would you return to work or push back your retirement planning for a four-day workweek? Let the team at Your Retirement Living know and subscribe to the newsletter for more information, news and industry updates.
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