GERMAN companies will introduce an experimental four-day workweek from February 1 and measure worker productivity.

The experiment, which will involve 45 companies, will last six months, and employees will keep their current salaries despite reduced working hours, Bloomberg writes. The goal of this experiment is to test whether union claims are true that people who work less are not only happier or healthier but also more efficient in their jobs.

“I am absolutely convinced that investments in new work pay off because they increase well-being and motivation, and thus efficiency,” said Soren Fricke, co-founder of event planning company Solidsense, one of the 45 companies that will be part of the study.

“A four-day week, if it works, will cost us nothing in the long run,” he adds.

Labor crisis in Germany

The project highlights a broader shift taking place in the German labor market, where a shortage of qualified workers is putting pressure on companies to fill their ranks. The shortage, together with high inflation, has encouraged workers across industries to seek higher wages and preserve the flexibility and independence they gained during the pandemic.

The imbalance is fueling tensions between employers and workers. German train drivers are currently already six days into a strike, demanding that Deutsche Bahn shorten the weekly working time from 38 to 35 hours without reducing pay.

The union of employees in the construction sector is seeking a 20 percent raise for a large portion of its workers, who number about 930,000 in total. Some economists warn that this move could fuel inflation.

According to last year's survey by an industry lobby, half of German companies are at least partially unable to fill vacancies. Software giant SAP SE stopped requiring university degrees from job candidates in 2022, while real estate giant Vonovia SE hired people from Colombia last year to cope with the worker shortage.

Bloomberg writes that the problem could only get worse. By 2034, more than seven million people will leave the German labor market due to a combination of declining birth rates and an aging population.

“I can get involved and position myself as a modern employer or simply say that we all have to work more and end up in a situation where I will no longer have anyone to work for me,” explains Henning Roeper, CEO of Eurolam, a window manufacturer.

Germans were absent from work an average of 21.3 days in 2022

Low worker enthusiasm costs the global economy 8.1 trillion euros annually, or nine percent of global GDP, according to Gallup research.

The experiment is being led by the New Zealand nonprofit organization 4 Day Week Global, which says that workers who work less for the same pay during the study should remain at least equally efficient or even more efficient.

In addition to increasing productivity, companies are expected to benefit from reducing costly absences due to stress, illness, and exhaustion. In 2022, Germans were absent from work an average of 21.3 days, resulting in a staggering loss of 207 billion euros, according to data from the Federal Institute for Occupational Safety and Health.

Supporters of this experiment point out that the novelty could attract new talent to Germany, a country which, according to Eurostat, already has the highest share of part-time employees in the EU.

Although Germany has by far the largest economic output in Europe, a lack of investment in innovation and digitalization has prevented productivity growth. Without improvements in these areas, it is unlikely that German workers would experience a significant increase in productivity simply by reducing working hours, believes Enzo Weber, an economist at the Institute for Employment Research in Nuremberg.

Bloomberg economist Martin Ademmer agrees with him, saying that efficiency per hour would increase, but that increase would not compensate for the cut in working hours.

Finance minister against it, says it goes against the country's economic growth and progress

Christian Lindner, German finance minister and member of the Free Democratic Party, criticized the decision of German companies, saying that a shorter workweek would threaten Germany's economic growth and progress.

But supporters of the idea say that earlier studies in the US and Canada showed that increased efficiency is possible. Workers reported an overall improvement in health, and not a single company returned to a five-day workweek.

Britain had a similar experiment involving 61 companies; they had good work performance, and sick leave fell by 65 percent. Portugal as well, around 20 percent of workers said they felt better and slept better.

Bloomberg adds that Belgium became the first European country to offer the option of a four-day workweek, but with the same weekly hours. Japan encouraged its companies to offer workers a shorter workweek in the hope that they would spend more, and also that the number of children born would increase.

“It does not always work and it is not for everyone. It requires a lot of creativity and flexibility on the part of companies. They themselves have to figure out what works or does not work for them,” concludes Jan Buhren from the consulting company cooperating with the experiment in Germany.

Source: index.hr