Trials of four-day work weeks have been taking place both in Australia and overseas, with many organisations reporting various successes.
Over 60 firms in Britain took part in a six-month experiment allowing almost 3,000 employees to work one day less per week while retaining the same salary.
Conducted between last June and December, it was organised by non-profit group 4 Day Week Global alongside the think tank Autonomy, the University of Cambridge and Boston College in the United States.
The trial concluded that a four-day working week is more productive for most staff and companies than the traditional five days.
However to date, these trials have largely been taking place in organisations with 45 or more employees.
Council of Small Business Organisations Australia (COSBOA) has issued a word of caution ahead of further developments. Chair Matthew Addison said the move needs to take into consideration the inflationary impact of multiple types of new leave, plus a move to four-day work weeks on the economy, with no underlying tradeoff for productivity.
"How does a small business stay open if their retail shop has no available staff? How does that retailer earn sales on day five when it is shut?
"How does the customer service centre provide coverage over all hours of operation when the staff only work four days per week?
"How does a service business (hairdressing, consulting) continue to provide 38 hours of services if the employee is only working 30.5 hours?"
Not every business can produce 38 hours of outcome in 30 hours, according to Addison. This includes reail stores which trade on a daily basis and already navigating staff shortages.
"Enhanced productivity expectations do not lead to five days of customers deciding to shop in four days. Small business continues to suffer worker shortages and an inability to remain open or offer full service due to a lack of staff. The proposal to reduce hours means a further reduction in a business’ ability to earn income.
"Inflation together with worker shortages are already driving demand for higher wages. A move in some industries towards five days’ pay for four days of work, would likely see all employees seeking similar arrangements. If this concept was to proceed, we would also likely see workers who have already been paid five days for four days’ work, offering to work the fifth day, on the proviso they would then be paid overtime for the extra day."
Addison said employees could choose to move away from industries that are unable to offer four-day work weeks for five days pay, including hospitality and retail.
"This additional disruption requires careful consideration before any implementation and subsequent management."