Iceland’s ambitious large-scale pilot experiment exploring the feasibility of a four-day workweek has yielded remarkably positive outcomes. Employees not only reported greater happiness, but also enhanced productivity. This innovative work-life balance approach has sparked worldwide discussions about the potential benefits of shorter workweeks.
According to a Canadian Broadcasting Corporation (CBC) report, the experiment occurred between 2015 and 2019, involving a collaboration among the Reykjavík City Council, the Icelandic federal government, and various labor unions. The goal was to evaluate the advantages and disadvantages of a three-day weekend. Approximately 2,500 employees — representing over 1 percent of Iceland’s working population — participated in this study, working 35 to 36 hours per week instead of the standard 40, all without any reduction in pay.
The results were striking and beyond what many anticipated. Participants exhibited significantly higher levels of happiness, improved work-life balance, and greater collaboration within the workplace. Importantly, their productivity and performance remained steady throughout the trial, dispelling the myth that reduced hours lead to decreased output. Instead, employees found themselves more focused and efficient during their working hours.
The positive impact of the reduced workweek extended beyond mere happiness. Research indicated a marked decrease in absenteeism. With less stress and more time for personal pursuits, employees took fewer sick days and were generally more enthusiastic about coming to work. This shift contributed to lower turnover rates and improved morale, creating a work environment that benefitted employees and employers alike.
Researcher Will Stronge noted in an interview with CBC’s As It Happens: “The results were overwhelmingly positive. Workers in various public service sectors reported higher satisfaction with their work-life balance. They spent more time with their families, engaged in leisure activities like cycling, or pursued new hobbies.” He emphasized: “This was a massive success not just from the workers’ point of view, but also from the employers’ perspective.”
Reduced work hours lead to happier workers
Stronge, co-director of the UK think tank Autonomy, explained that their organization, in collaboration with the Icelandic Association for Sustainable Democracy, compiled the data from the experiment. Participants came from various sectors, including offices, hospitals, daycare centers, and social service units. While most workers followed a standard Monday-to-Friday, 9-to-5 schedule, shift workers had their hours reduced in other ways. Remarkably, the positive results were consistent across all work environments, reinforcing that a shorter workweek could be a viable model for diverse industries.
Stronge elaborated on the broader implications of the findings, explaining that while reduced hours naturally led to happier workers, the unexpected outcome was that employers benefited as well. In the best cases, managers observed increased productivity; in the worst cases, productivity remained stable. Notably, the experiment had no negative impact on employers’ bottom lines. According to Stronge, this was mainly because workers experienced lower stress, anxiety, depression, and burnout, which made them more dedicated to their work and resulted in fewer sick days. With more leisure time, employees became more engaged and committed to their jobs.
This positive feedback loop created an environment where employees thrived, enhancing job satisfaction and loyalty. As workers had more time to recharge, they returned to their jobs more invigorated and ready to contribute. This directly correlated with improved productivity and a workplace atmosphere fostering collaboration and innovation.
Global impact and prospects
Iceland’s experiment aligns with a growing global trend of exploring shorter workweeks. Similar trials around the world have yielded equally promising results. In 2019, Microsoft Japan conducted a test where employees were given a three-day weekend, resulting in a remarkable 40 percent increase in productivity. In New Zealand, the financial services company Perpetual Guardian saw a 20 percent boost in productivity during its four-day workweek trial in 2018, prompting the company to adopt the schedule permanently.
The influence of Iceland’s experiment is not limited to its borders. By 2023, nearly 90 percent of Iceland’s workforce had transitioned to a reduced-hours model, formally through policy or informally within companies that adopted the approach. This widespread shift highlights how effectively the experiment has transformed workplace culture. The Icelandic government and labor unions were so encouraged by the results that they advocated for broader adoption across various sectors, ensuring that workers and employers could reap the benefits.
Furthermore, Iceland’s success has inspired other Nordic countries to initiate similar trials or consider policy changes to reduce working hours. Countries like Sweden and Finland have also explored shorter workweeks and flexible working conditions, driven by a desire to improve worker satisfaction while maintaining economic stability. As these experiments continue to gain momentum, the Nordic countries are setting a global example of balancing work and life to promote well-being without sacrificing productivity.
The implications of Iceland’s four-day workweek experiment extend beyond just employee happiness; they challenge long-standing notions about productivity and work structure. As more organizations and governments consider these findings, the possibility of a paradigm shift in how we view work is on the horizon. The prospect of happier employees and more productive workplaces could lead to a redefinition of success in the modern workforce.
Translated by Katy Liu and edited by Tatiana Denning
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