Australian Treasurer Jim Chalmers recently declared that productivity would be the theme of a future National Productivity event. This decision comes on the heels of deep-rooted concerns about the country’s long-term economic performance. The announcement comes at a pivotal time. Policymakers, business leaders, and academics are just beginning to talk about the relationship between working hours and productivity.
With Australian productivity at a standstill since the late 1990s, some of the country’s leading minds are debating how to bring about a new productivity boom. One of CMAP’s more ambitious proposals is advocating for an eventual, nation-wide trial of the four-day workweek. Advocates argue that alterations to the traditional work model could lead to improved work-life balance, employee satisfaction, and ultimately, higher productivity rates.
The Push for a Four-Day Workweek
In its final report, the 2023 Senate Inquiry into Work and Care took the unprecedented step of recommending that… They called on the Australian government to trial a four-day workweek to improve productivity. This proposal found unusual endorsement from ACTU President Michele O’Neil, who highlighted positive effects of working less.
Proponents of this new paradigm argue that a four-day workweek would help improve employee health and happiness. In fact, research shows that longer hours tend to go hand in hand with lowered productivity, the opposite of what we’ve long assumed. As a study we profiled found, longer hours often result in burnout instead of increased productivity.
Sean Scalmer, an associate professor at The University of Melbourne, provided context on the historical debates surrounding productivity in Australia. He noted that productivity has stumped federal Australian governments for over a hundred years. This underscores the challenge of identifying successful solutions to this decades-old problem.
The Role of Technology and Education
In debates about how to increase productivity, the adoption of labour-saving devices has become a focal point. Higgins raised an essential question: “Are they to get no direct advantage from the introduction of labour-saving devices?” That underscores the importance of making sure employees share in the fruits of workplace innovation, which should boost productivity.
Scott Farquhar, co-founder of the Atlassian software company, has been very public about his excitement and optimism around AI’s potential in this space. Given the right constraints, he argues, AI would be able to hugely simplify processes and dramatically increase productivity in countless fields. As Farquhar reminds us, it’s critical that workers receive proper training and support. Proactive, thoughtful collaboration is a key ingredient for successful implementation of these technologies.
Furthermore, university vice-chancellors have proposed that greater education and skill development can play a crucial role in improving productivity levels. And they know that a more educated workforce will be better equipped to harness the power of those new technologies. This will prepare them to better meet the market’s evolving demands.
The Impact on Work-Life Balance
The current discussion on labour productivity and working hours has major ramifications for achieving work-life balance, especially for Australian women. It is well-documented that women experience severe burnout. This is in large part a result of the pressures of being a working parent with competing work and family obligations.
A shorter working day would help address many of these stresses, resulting in less absenteeism and a lower incidence of workplace accidents. By supporting a better work culture, employers will likely see improved employee retention, productivity and job satisfaction as well.
International studies have highlighted the relationship between productivity and hours worked, further making the case for abandoning an outdated approach to work. The emerging evidence indicates that cutting hours is a win-win and good for business and worker productivity.
