Six week annual leave vs. Four day work week: Which one is better?

Australia has always been at the forefront of workplace policies aimed at enhancing employee wellbeing and work-life balance. In recent years, two distinct approaches have gained traction: the introduction of a six-week annual leave policy and the adoption of a four-day work week.

Both these strategies hold the promise of improved employee satisfaction, engagement, and overall wellbeing. In this article, we’ll compare these two options, exploring which one offers better benefits and how HR departments can champion the necessary changes to ensure employee wellbeing remains a top priority.

The Current State of Leave Entitlements in Australia

Australia’s paid leave entitlements have remained relatively unchanged since the mid-1970s when annual leave was increased from three to four weeks. However, the world of work has undergone significant transformations since then, prompting many to advocate for a reevaluation of paid leave allocations.

In comparison to other countries like Sweden, Norway, France, and Denmark, which offer five weeks of paid annual leave, Australia falls behind. Some countries, such as Andorra, Monaco, and Peru, even provide six weeks of paid leave in addition to public holidays.

A Possible Alternative to the Four-Day Work Week?

Recently, the concept of a four-day work week, also known as a compressed work week, has gained popularity in Australia and globally. Trials of this model have demonstrated benefits such as improved work-life balance, job satisfaction, and productivity. However, critics argue that it could lead to disruptions in production, teamwork, and collaboration due to mismatched schedules.

Following a recent four-day work week trial involving 10 Australian and 16 international organisations across various sectors, 44 percent average reduction in absenteeism was observed, with just one company opting not to continue with the compressed week. Additionally, over half of employees reported improved work quality, 64 percent experienced reduced burnout, and 38 percent felt less stressed.

The Case for Six-Week Annual Leave

1. Extended Rest and Rejuvenation: A six-week annual leave policy provides employees with an extended period of rest, a key advantage.
2. This extended break allows employees to disconnect from work-related stressors, recharge their energy, and return to work with renewed enthusiasm.
3. Better Work-Life Balance: Six weeks of annual leave allows employees more time for family, hobbies, travel, and self-care. This improved work-life balance can lead to reduced burnout and increased job satisfaction.
4. Enhanced Productivity: Contrary to the belief that longer vacations decrease productivity, research shows that employees who take longer breaks tend to be more productive when they return to work. They come back with a fresh perspective and a clearer mind, ready to tackle challenges effectively.

The Case for the Four-Day Work Week

1. Reduced Stress and Burnout: The four-day work week condenses the usual five-day schedule, granting employees an extra day off each week.
2. This approach can significantly reduce stress and burnout levels, as employees have more time to relax and recharge.
3. Increased Focus and Efficiency: Shortening the workweek encourages employees to make the most of their time at work. With fewer days to complete tasks, employees often become more focused and efficient, leading to improved productivity.
4. Attracting Top Talent: Offering a four-day work week can be a competitive advantage in recruiting top talent. Potential employees may be more drawn to organisations that prioritise work-life balance, leading to a more skilled and motivated workforce.

HR’s Role in Implementing Change

1. Employee Engagement Surveys: HR should routinely survey employees on their satisfaction and preferences for annual leave and workweek structure.
2. This data can inform decision-making and help tailor policies to meet employee needs.
3. Flexible Policies: HR should advocate for flexible policies that allow employees to choose between the six-week annual leave or four-day work week options. Not all employees have the same needs, and offering choices can boost overall satisfaction.
4. Education and Communication: HR should educate employees about the benefits of both options and clarify their rights and responsibilities under each policy.
5. Monitor and Adjust: Once implemented, HR should regularly monitor the impact of these policies on employee wellbeing and productivity. Feedback from employees should be used to make necessary adjustments.

Both the six-week leave and four-day work week have unique benefits for employee wellbeing in Australia. The choice may depend on an organization’s needs and employee preferences. HR’s role in advocating these changes is crucial. Prioritizing employee wellbeing through flexible options leads to a happier, healthier, and more engaged workforce, benefiting both employees and the organization.