More companies in the U.S. are experimenting with a shortened workweek due to employee demand for flexibility and research showing that working fewer hours can increase productivity and improve profits. ThredUp, an online consignment and thrift store, has transitioned to a permanent four-day workweek after a successful one-year trial. According to CEO James Reinhart, this change has boosted employee morale and productivity.
How did the experiment come about and why was a five-day workweek not working?
James Reinhart: The experiment began during the onset of the pandemic in April 2020 when many companies were laying off employees. We decided to try a reduced workweek with 80% pay for four days of work to improve our financial situation. We continued this for a year and found that employees were just as productive, happier, and had more time for creativity and family.
In 2021, we made the four-day workweek permanent and shifted employees to full-time pay. We committed to measuring the impact and ensuring accountability. Now, after more than two years, we can confidently say that it has been a success.
What factors contributed to the success of the experiment?
JR: I’ve always believed that happy employees are highly productive. Creating an environment where people love their work and feel positive about the company leads to better outcomes.
Even before the pandemic, we prioritized employee well-being with work-from-home days and sabbatical opportunities. We built a culture that valued employee happiness as crucial for retention and productivity.
What changes were necessary to accommodate the shift?
The key to success is completing five days’ worth of work in four days. This requires increased effort and improved time management. We encourage employees to make the most of their four days by working harder and being more efficient.
It’s like interval training in sports: work intensely, then rest. The challenge is maintaining a high level of productivity while taking advantage of the shorter workweek.
The four-day schedule must be rigorous and focused. Slacking off on Thursday afternoons is not an option. We expect employees to work consistently throughout the week.
How do you measure the success of the four-day workweek?
We don’t always get it perfect, but on average, our employees work hard during those four days. Deadlines often motivate them to put in extra effort. Since Friday is not an official workday, employees use it as an opportunity to tackle tasks and feel a sense of freedom in getting things done.
In terms of productivity, we haven’t seen any negative impacts. Our projects are still delivered on time, and quarterly goals are met, even with the reduced workweek.
However, isn’t the four-day workweek a privilege?
Undoubtedly, the four-day workweek is a privilege, and we make it clear that employees need to earn it. If we fail to meet our shareholders’ expectations, we won’t be able to maintain this arrangement. Accountability is crucial.
Is working four days and having three days off the ideal work-life balance?
We aim to strike a balance between exertion and recuperation. Allowing employees enough time to rest and recharge is essential for them to work at their best.
We often underestimate the importance of work quality. When we are well-rested and in peak condition, the quality of our work improves. It’s about being the best version of ourselves.
How do your employees feel about the change?
Prior to the experiment, our employees consistently expressed appreciation for having a three-day weekend. They returned to work feeling rejuvenated. I wanted to create a sense of freshness that leads to better outcomes.
Some employees choose to work on Fridays. They enjoy the freedom and lack of interruptions, allowing them to focus on creative proposals, performance reviews, or product designs. The absence of incoming messages and distractions can be liberating.
What defines “better outcomes”?
It’s challenging to provide concrete evidence of improved work quality. However, as a public company, we have set standards and deadlines that need to be met. We don’t allow tasks to be delayed simply because we work one day less. The right mindset and committed employees ensure that we achieve our goals.
Do you believe every company should adopt a four-day workweek?
I’m not sure if I would advocate for a universal adoption of the four-day workweek. It works for us because our company is driven by a strong mission. Our employees are motivated to contribute and are willing to work hard for four days in service of that mission.
However, I can see how this may not work for companies with disengaged employees or those who dislike their jobs. In such cases, a shortened workweek might not yield positive results.
How many days a week do you work yourself?
As the founder, I am essentially working all the time. The love for the company is always present. I never complain about the workload because I consider myself incredibly fortunate.
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