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Archive for the ‘Four Day Work Week’ Category

Review of 4-Day Work Week

Thursday, October 1st, 2009 by Machel

 It has been just over one year since we converted from a 5-day work week, to a 4-day work week.  My job was to analyze whether the 4-day work week brought more money to our bottom line.

 Here is what I discovered.  Just by calculating the change in percent direct labor, there was about a 1% increase of direct hours.  This 1% increase went straight to the bottom line.  There was no increase in costs, such as overtime and any additional overhead, by converting to a 4-day work week.  Also, the one thing you can’t measure, employee moral, increased as well.  

 Our employees use that day to make personal appointments, which means missing less work, plan 3-day vacations, and spend more time with their families.  When asked if we wanted to switch back, the answer was a resounding “NO!!”

 Overall, I feel this has been a great decision.  There have not been any negative comments from our customers or our employees.

The Four Day Work Week is Here to Stay

Tuesday, November 11th, 2008 by Roger

A few months ago Setpoint moved to a 4 day work week.  The plan was to run it as an experiment for 90 days and see how things worked out.  I’m pleased to report the experiment has been a rousing success and that we intend to continue on with virtually our entire workforce on a 4 day, 10 hours per day schedule, Monday through Thursday.

The feedback from our team members has been extremely positive, as everyone has settled into routines of spending most Fridays with their families or enjoying their hobbies.  There are of course exceptions to this.  We have been in a busy cycle for the last 8 weeks or so and have had many people working on Fridays in order to meet our obligations to our customers.  But even with a day of overtime on Friday’s we’ve usually been able to take off Saturdays and Sundays for two-day weekends.  Morale is up, productivity is up.

We did spend some considerable time and effort upfront to alert our customers to our plans regarding the 4-day week, and I believe that helped us to set the proper expectations early on.  There have been a few customers that have needed our assistance on Fridays and we’ve been able to fill those needs by various team members volunteering to take care of those needs.  Each of our regular customers have cell phone numbers for members of the management team, and if something unforeseen comes up on Fridays, they can call and get help most of the time.  But the calls have slowed down as customers have gotten used to us being closed on Fridays and they tend to plan accordingly whenever possible.

One unexpected benefit that came about from the schedule change was an opportunity to improve our Just-in-Time (JIT) procurement process.  In the past we have ordered all parts at the start of a project, which led to them being assembled as they trickled in.  This method caused a number of inefficiencies for us: the assembly technicians wasted significant time starting a project and then stopping when they ran out of parts, we would have to pay for parts often before we really had any use for them, and there was often chaos created by people going through parts and then putting them back when they had to stop.  Sometimes parts would get put in the wrong totes or even on the wrong project rack.  With the new system we order parts as required, we do not accept early deliveries, and we ask all of our vendors to deliver parts on Thursdays.  On Fridays we have a part-time expeditor come in and receive parts and distribute them to their proper job kits.  When the assembly crew comes in on Mondays the parts are ready and waiting for them.

Overall, we’re very pleased with our 4-day work week experience and we plan on continuing with it into the foreseeable future.  If you have any thoughts about trying a four-day week at your company, my advice would be to embrace the concept and do whatever you can to make it work for you.  I know we have been pleasantly surprised by the positives!

The Four Day Work Week

Tuesday, July 15th, 2008 by Roger

Are we doing our part to battle the energy-crunch, or just lounging around on 3-day weekends???

In 1938 the U.S. Government passed the Fair Labor Standards Act (FLSA), standardizing the eight hour work day and the 40 hour work week.  At the time it was a major improvement for the average American worker, since prior to the FLSA, many companies forced their employees to work 60+ hour weeks with no regulations whatsoever requiring employers to exercise fair and humane treatment on their workers.  “Sweat shops” were the norm, not the exception.  Since that fateful day seventy years ago, every Monday, Tuesday, Wednesday, Thursday and Friday workers all over the country wake up, get dressed, eat breakfast and go to work from 9 to 5. 

Over the years situations have come along that have made people question the ‘absolute’ effectiveness of this 5 day 40 hour week.  My first personal memory of such a situation was during the gasoline shortage in the early ’70s.  It was a crazy time as cars lined up at gas stations only being able to fuel up on odd or even days.  People were literally fighting in the streets over gasoline.  During that crisis, some forward-thinking companies realized that they could work 4-10 hour days instead of 5-8 hour days, still get their required production quotas complete, and save 20% in fuel usage for the employees with the shortened weekly commutes. 

Obviously the 4-day work week didn’t become the standard overnight but it has been around for decades now in one form or another with many manufacturing companies utilizing it for their blue-collar workforces.  It is often used as a perk in recruiting, and most employees find it to be a great benefit to them.  As flex-shifts became popular in the 80’s & 90’s more white-collar companies started instituting 4-day weeks too.  Again it was considered a benefit and people were very much in favor of the resulting 3 day weekends.  Employers also became fans of the 4 day week as they took note of improved morale, increases in productivity and decreases in absenteeism.  So did these companies find the ‘ultimate schedule’ for the employees and their shareholders?  Some say yes, some say no but I think all agree on one point.  There are some very tangible energy savings to be considered when setting a company’s work week, both for the employees and the company.  When skyrocketing energy costs are bold headlines in every newspaper across the country every day, any and all ideas must be seriously considered.  We find ourselves at that crossroad today.

Here at Setpoint, we have weighed the options and the potential benefits and drawbacks carefully and concluded that a 4 day week seems to be a good fit for us.  With all factors considered, we have undertaken a 90 day experiment to try and implement a more efficient schedule that balances the needs of our employees, our customers, and our shareholders.  We have adjusted our work week to a “four 10s” mode, or Monday through Thursday 6:00 am to 4:30 pm.  This change comes in response to several key points that have become more relevant by the day:

  1. Public gas price comments have quickly transitioned from things like “Oh my goodness, these gas prices are steep!” to “Without a doubt, we should immediately invade and occupy all foreign oil-producing countries!”
  2. The Great State of Utah, led by our friend and Governor Jon Huntsman Jr., has moved all state employees to a similar work week, with practically all state offices closed on Fridays.
  3. For some time now, Setpoint employees have requested a four-day work week.  After weighing every possible angle, we feel that we can be just as effective (if not more) as we were in a Monday through Friday, 8 hours per day shift.  At the same time, everyone gets an extra day to relax, pursue their hobbies, spend time with their families, etc. and of course, there are those nifty energy savings to consider.

The primary payoff for this schedule for employees is obvious, with an extra day available every week for whatever they may choose to use it for, and an immediate 20% reduction in commuting costs.  But there are also a number of less-obvious benefits that should be noted: less wear and tear on vehicles, less time spent inhaling polluted air while stuck in traffic and less commute-related stress for everyone.

The payoff for the environment is also easy to see, as theoretically we are facilitating a 20% reduction in the notorious greenhouse gasses that our cars emit by reducing the commuting days for every employee (in reality, it will probably be less than a 20% reduction since many people will still be driving SOMEWHERE on Fridays, even if they don’t have to drive to Setpoint anymore).  There is also the added energy savings of minimizing electrical and natural gas usage in the Setpoint facility on Fridays.

And finally, the payoff that the 4-day work week can bring to Setpoint should be noted.  For years government and academic studies have shown that employees are more efficient in a 4 day work week.  The reasons cited are 20% less ’start-up time’ required every week (i.e. that protracted “where was I when I left off yesterday?” timeframe that we all go through every morning as our caffeine kicks in), improved employee morale, and a decrease in employee absenteeism (due to an extra day every week to take care of personal business).  This schedule also allows a more reasonable ‘flex’ when the workload is heavy and overtime is required to complete commitments.  Employees can work overtime on Fridays as required to stay on schedule and still have a two-day weekend to “recharge the batteries”.

With the changes that are taking place in the world today we all need to be flexible and open-minded to try and find more efficient ways to conduct business.  This means we need to occasionally look past some of the long-standing traditions that may no longer be as applicable as they once were.  With that sort of forward-thinking in mind, we here at Setpoint embark on our 90-day experiment with high hopes for a successful outcome.  The measure of success will be determined by the technical and financial effectiveness and efficiency in our efforts, as well as our employee and customer satisfaction levels.  If we are as successful as we expect to be, it’s probable that we will implement the 4-day work week as our standard.  Check back with us in 90 days to see how this grand experiment works out!