Argentina currently has a maximum working week of 48 hours, distributed in different ways, although none can exceed 9 hours a day. However, reforms to this law have been proposed to reduce the working day, ranging from a low of 8 to 16 hours, depending on the proposal.
The pandemic was part of the context that helped to open up this discussion. Thus, more and more companies are trying out changes for their employees. In line with this, the Japanese multinational Ricoh is conducting pilot tests in Latin America (between July 2022 and March 2023). With two months per batch, the aim is to test the effectiveness in improving the productivity of its employees. Those selected receive an extra day off which can be distributed, depending on the person, between Monday and Friday.
This is not an entirely new issue and there is already some background information that gives an idea of what the effects of this modality might be.
For example, in 2015 the four-day working day was implemented for the first time in Iceland’s public sector with satisfactory results, such as improved employee stress and burnout and better service delivery.
Other cases in which this modification of working time has been tested include Belgium, New Zealand, the United Kingdom, Germany, and Sweden, which, although the latter promoted the project in nursing homes and later abandoned it because it represented higher costs, it is still being maintained in various companies throughout the region.
On the other hand, software giant Microsoft in Japan achieved a 40 percent productivity improvement, reduced absenteeism, and even a reduction in overall office costs by implementing a four-day work week.
The main question as to how the reduction of working hours should be carried out is that the previously stipulated salary should not be affected. Some propose that working hours should be reduced. Others suggest that the working hours should be spread over 4 days a week. The latter variant generates negative opinions because it would mean a longer working day for workers. This could result in employees being more uncomfortable and less motivated with the company’s tasks, affecting productivity.
Having said all this, is a reduction in working hours good for the productivity of companies? Some organizations support the reduction of working hours, such as the NGO 4 Day Week Global (4DWG), which has shown that companies that use this method have happier and more motivated workers, through pilot tests in different companies that decided to adopt this methodology, such as MRL Consulting or Welcome to the Jungle. In addition, according to 4DWG, companies also benefited in attracting and retaining talent.
Moreover, according to the International Labour Organisation (ILO), long working hours can have an impact on productivity, generating a potential loss of up to 3% of GDP.
Although there are still many factors to be evaluated and results to be expected from the implementation of the pilot projects, perhaps it could be considered to start implementing them in different companies or sectors in Argentina and measure their effects.
* Andrea Margarita Viscarra Valdés is currently an Intern at Fundación Internacional Bases.
Source: We are Innovation
