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Home » The 4-Day Workweek is Officially Making Companies More Profitable—Just Look at New Zealand
Economy

The 4-Day Workweek is Officially Making Companies More Profitable—Just Look at New Zealand

Sam AllcockBy Sam AllcockJuly 15, 2026No Comments4 Mins Read
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The 4-Day Workweek is Officially Making Companies More Profitable—Just Look at New Zealand
The 4-Day Workweek is Officially Making Companies More Profitable—Just Look at New Zealand
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In 2018, skeptics had plenty of ammunition when Andrew Barnes gave his roughly 240 employees at Perpetual Guardian an extra day off each week. The will-writing business in Auckland was not a tech startup with a flexible philosophy and bean bags ingrained in its culture. It was a fairly traditional financial services company. Many people thought it was a risk to the company’s bottom line to cut a full working day while maintaining the same salaries.

When the results were revealed, they were hard to ignore. Employees said their productivity had increased by 20%. Stress levels decreased. The level of job satisfaction increased. Sales remained consistent. Profits increased. Under the direction of Jarrod Haar, a professor of human resource management at Auckland University of Technology, the researchers hired to examine the trial discovered improvements in nearly every metric they looked at. After that, Barnes did not discreetly put the experiment on hold. He made it last forever.

Something bigger than he probably expected was set off by that choice. An estimated 3.2 billion people in 32 countries saw media coverage of the trial. It led to formal demands from union groups, serious policy discussions in the UK, and a global discussion about whether the five-day workweek is the most practical way to organize human labor. Looking back, it seems like one mid-sized New Zealand company unintentionally penned the blueprint for a movement in the workplace.

Since then, the evidence has been remarkably consistent. With no discernible decline in output, a large-scale Icelandic study that followed about 2,500 workers who reduced their workweek from 40 to 35 or 36 hours found sustained productivity gains, fewer sick days, and higher employee satisfaction. Eighty workers participated in Unilever New Zealand’s own 18-month pilot.

There was a 34% decrease in absenteeism. There was a third less stress. There was a 67% decrease in work-life conflict, which is the ambiguous but real tension between personal and professional obligations. Throughout, the business goals were completely achieved. More recently, a Boston College study that included almost 3,000 workers from 141 companies in several nations yielded similarly positive findings regarding job satisfaction and burnout.

These figures are intriguing because of what they imply about the nature of work itself, not just because they are consistent. Work expands to fill the time available for its completion, according to a well-known principle sometimes referred to as Parkinson’s Law. This is evident to anyone who has watched the clock on a Friday afternoon.

When given the opportunity to leave earlier, office workers in particular have a tendency to stretch tasks to fit the hours they are expected to occupy rather than finishing them more quickly. In many situations, cutting the week down to four days appears to compress that expansion. Individuals have different priorities. Meetings either end completely or become shorter. Spending time at the desk becomes more intentional.

However, the story from early 2026 in New Zealand is more nuanced. There are currently between 10 and 20 businesses in the nation that provide a true four-day workweek; this number has actually decreased over the previous year. During a period of economic tightening, a number of businesses withdrew to the five-day model.

The 4-Day Workweek is Officially Making Companies More Profitable—Just Look at New Zealand
The 4-Day Workweek is Officially Making Companies More Profitable—Just Look at New Zealand

According to Phil McParlane of the 4dayweek Jobs Board, when boards are under financial strain, the shorter workweek frequently becomes an easy target—blamed for shortfalls that are more related to general market conditions than scheduling. It’s important to be open about that tension. The model calls for more than just a calendar adjustment; it calls for actual structural change. When margins shrank, businesses that viewed it as a morale boost without changing workflows occasionally discovered it was unsustainable.

Brevity, an interior design firm in Auckland, provides a more sophisticated version that could serve as a model for future developments. The company now views a shortened workweek as a reward for meeting team productivity goals rather than just providing Fridays off as a standard. The change from entitlement to earned outcome is subtle but significant. Flipping the model, according to managing director Matt Bishop, means that productivity comes first, followed by a day off, as opposed to assuming that the day off will produce the productivity. While maintaining the fundamental incentive structure that drives the model, that strategy might be more palatable to anxious boards.

By now, most of the basic question—whether four days is actually sufficient to complete the task—has been addressed. One direction is consistently indicated by data from the UK, Iceland, New Zealand, and other places. Whether enough companies are prepared to endure the discomfort of change to get there is still genuinely unknown.

4-Day Workweek
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Sam Allcock
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Sam Allcock is a journalist, digital entrepreneur, and media strategist with a passion for purpose-driven storytelling. With over a decade of experience in the media landscape, Sam has built a reputation for creating impactful narratives that bridge the gap between innovation, integrity, and social responsibility. As the founder of multiple digital ventures, Sam understands the power of strategic communication in shaping public discourse. His work explores how technology, entrepreneurship, and ethical leadership intersect to create meaningful change. On Purposed.org.uk, Sam contributes thought-provoking articles that challenge conventional thinking and advocate for a more conscious approach to business and media. Beyond his writing, Sam actively supports initiatives that promote transparency, trust, and long-term value in both corporate and community settings. His insights are grounded in a belief that purpose is not just a trend, but a transformative force in today's world.

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