From 2015 to 2019, the Nordic country Iceland conducted one of the world's busiest labor experiments. Two large experiments organized by the Reykjavik City Council and the Iceland Government have shortened working hours for more than 2,500 civil servants, equivalent to about 1% of the country's total workforce.
According to this model, workers only work from 35 to 36 hours a week, instead of 40 hours as before but still keep the salary unchanged. The test is widely applied in many different fields, from administrative agencies, schools, hospitals to social welfare units. Shortening working hours programs do not take place in a closed testing environment but are implemented right in daily activities, where every small decision also directly affects work efficiency.
Successful experiment on a national scale
The report published by Autonomy (UK) and Alda (Iceland) in 2021 affirmed: The experiment was a " resounding success". Specifically, the stress level of workers has decreased significantly, the risk of burnout has decreased, while work performance in most agencies is still maintained, even increased slightly.
A staff member of Reykjavik City's human resources department told BBC: "We cut unnecessary meetings, reorganize work processes, and focus more on key tasks. The work efficiency has not decreased, on the contrary, people's spirit is clearly better".
The change occurred in many different working environments. Medical staff participating in the program said that they have more time to recover between long shifts, helping to reduce professional errors and improve concentration during treatment for patients. Preschool teachers recount that shorter teaching hours make them organize classes more systematically, limiting long, un targeted thunderstorms.
From that success, trade unions in Iceland have negotiated to replicate the model. To date, about 86% of Iceland workers have signed contracts under the shortened working hours regime or have the right to request adjustments to working hours according to their needs.
Reuters quoted Mr. Gudmundur D. Haraldsson, a researcher at Alda, as saying: This experience shows that labor productivity is maintained, while the happiness and attachment of workers are also improved. This is a solid foundation for a sustainable society.
It is no coincidence that Iceland, a country with a population of just over 390,000 (2023), has become a model studied by many governments and international organizations in search of an efficient and humane labor model for the 21st century.
New Zealand: Worked for 4 days, received 5 days' salary
If Iceland pioneered in reducing working hours in the public sector, in New Zealand, the innovation initiative originated from the private enterprise sector.
In 2018, Andrew Barnes, founder of asset management firm Perpetual Guardian, proposed a 4-day workweek trial with 240 employees in Auckland and Wellington. Instead of working 5 days, employees only work 4 days/week but still receive enough salary.
During the eight weeks of the pilot, the company coordinated with researchers from Auckland University and Auckland University of Technology to objectively measure the results.
The results were very positive. According to a report published in The Guardian, employee stress levels decreased by 7%, job satisfaction increased by 5%, and especially, the percentage of employees said they felt the balance between work and personal life skyrocketed from 54% to 78%.
Mr. Daniel Meuli, a legal officer of the company, said: "Just needing an extra day's break, I was able to complete personal work, exercise, and spend time with my family that I had always had to postpone before."
The addition of a day off has created changes both individually and internally in the company's culture. Working groups are more proactive, communicate more concisely and effectively, and reduce long-term, inorganic meetings. "We do not trade productivity for time off. In fact, employees work more focused, eliminating wasteful periods of time, Mr. Barnes emphasized.
The success of the experiment has led Perpetual Guardian to officially adopt a 4-day workweek model from the end of 2018. Since then, their story has inspired hundreds of other companies in New Zealand and many other countries, from technology, innovation companies to the financial industry.
In a new labor conference in Wellington late last year, Andrew Barnes affirmed: We can change the way we work. And when we change, we will change the lives of millions of people.
Shortened hours, longer days
The most notable thing from the stories in Iceland and New Zealand is the result of not increasing control or putting more pressure on workers but coming from empowering, trusting and organizing work more intelligently.
In Iceland, reducing working hours is associated with the spirit of improving work processes: Reorganizing meetings, decentralizing power more effectively, focusing on essential tasks instead of spending time on formal procedures. In New Zealand, trust allows employees to manage their workload on their own, with a clear goal of results.
Both models show: When workers are respected and given autonomy, they will work more responsibly, focus more and be more creative.
From these results, many international labor experts believe that changing working thinking - from valuing working hours to valuing real results - will be the key to solving major problems of the future labor market: Stress, exhaustion, shortage of high-quality human resources and the risk of prolonged inequality.
Not all models are easy to replicate. Not all industries can apply a 4-day working week or shorten office hours. However, success stories in Iceland and New Zealand have pointed to a general principle: Modern labor needs to be organized around people, not just around the clock.
This requires a major change in management thinking: From evaluating employees through their time in the office, to evaluating based on actual results. At the same time, it also requires businesses and organizations to be ready to redesign their working processes to be more streamlined and reasonable.
On International Labor Day 1.5, when the world celebrates the continuous efforts of workers for more than a century, the story from offices in Reykjavik and Auckland resounds as a strong reminder: Not having to work many hours is hard work. Working smarter, living more fully - that is the journey that modern workers should aim for.
