A company tried a 4-day workweek with no pay cut and went bust
Currently, the buzz around the four-day work week is heating up in labor discussions worldwide. Despite its appeal, not all experiments with this model have been smooth sailing. Let’s dive into the story of a company that took the leap into the reduced work week, only to find themselves facing financial woes that ultimately led to their closure.
### The four-day model: a tantalizing idea
The concept of a four-day work week is enticing, promising a better work-life balance and increased happiness for employees. In France, a study revealed that a whopping 77% of workers would be open to embracing this model, with the number climbing to 83% among the 25 to 34 age group. However, not all experiences with this setup have been as rosy.
Julien Le Corre, the mastermind behind a French communication agency called YZ, decided to implement the four-day work week in 2020 amid the chaos of the Covid-19 pandemic. His goal was to create a more flexible environment for his team by giving everyone Fridays off without cutting their pay. Initially, morale seemed high, with internal surveys indicating satisfaction with the new setup. But soon, cracks began to show.
### Initial hurdles: rigidity and competitiveness
One major stumbling block Le Corre encountered was the lack of flexibility when it came to days off. While all employees enjoyed a long weekend, this rigid approach hampered the company’s responsiveness to clients in need of urgent assistance. As Fridays became a no-go zone for YZ, tensions rose with clients who noticed their sluggishness compared to competitors maintaining a traditional work week.
Internal dynamics also took a hit. While some staff members embraced the new schedule, others resisted the change. Instead of relishing their extra day off, some worked outside regular hours to keep up, leading to division and frustration within the teams.
### The company’s demise: a bitter end
By 2022, YZ’s financial woes deepened. The reduced work week impacted productivity, and coupled with pandemic-related challenges, the company lost key clients. Even after attempting to reverse the decision in September 2022, the damage was irreversible. In October 2023, YZ had to declare bankruptcy.
In his book, “Jour Off,” Julien Le Corre reflects on the hard lessons learned. He stresses the importance of meticulous planning when implementing innovative work models. Le Corre admits that YZ failed to foresee the long-term consequences of the four-day work week and that inflexibility played a pivotal role in their downfall.
The YZ saga underscores that while the four-day work week can enhance employee well-being, it demands serious consideration before implementation. Companies must weigh the risks and feasibility based on their industry and operational requirements. Ultimately, a measure benefiting employees should not jeopardize the company’s financial stability.
Le Corre’s parting advice is clear: the key to success with flexible work models lies in striking a balance between employee satisfaction and the company’s long-term viability. Lack of cohesion and poor planning spelled doom for YZ. For him, prioritizing employee well-being must go hand in hand with safeguarding the company’s stability and competitiveness.
