By dropping to a four-day working week, one Australian company has increased profit, revenue, staff retention and morale. Read how.
In the year since making her workplace Wednesday-free, Kath Blackham, Founder and CEO of digital design and voice experience (VX) agency VERSA, has seen an increase in staff retention, a reduction in sick leave, a three-fold increase in profit and almost doubling of revenue year-on-year.
It also means staff are actually limited in the number of hours they work each week so are less likely to reach burn-out and more likely to be more productive in the days they are at work, making it an integral part of the company’s focus on good mental health in the workplace.
And yet there are still those who continue to doubt the efficacy of such an initiative.
“There are certainly some businesses where this wouldn’t work because of their staff or client base or the nature of their business, but there is also plenty of scope to see what will work for your staff,” Blackham says of her decision to introduce a four-day working week.
“That’s why other people should try it. I want businesses to start having a discussion at a senior level to see if this works.
“I am trying to show other agencies you can be successful, profitable and growing. We have grown in the last 10 years 30 per cent year on year, every year, and this year we will grow by 46 per cent. Some of that is the emerging tech and part of it is due to the fact that we have a really great team of people who are happy and productive.”
VERSA is a Melbourne-based company with offices in Sydney and, since June, in Singapore.
It has a headcount of 55 and works with a number of well-known brands including Coca-Cola, Domino’s Pizza, Heinz, Dairy Australia, Pfizer, beyondblue and Village Cinemas.
Under the four-day working week structure, staff work their weekly 37.5 hours over Monday, Tuesday, Thursday and Friday. There is just the one staff member who works on a Wednesday and that is because this is one of only two days a week she can get childcare.
Blackham says the four-day work week, introduced on July 1 2018, came after trying a number of flexible working approaches as part of what she considers a holistic approach to ensuring the mental and physical wellbeing of her staff.
The business began with complete flexibility - staff working remotely or in the office as it suited them and on the days and hours that worked best for them. As long as the work was delivered each week and there were no adverse impacts on customer service, staff had a strong say in when and where they worked.
“That worked for us when there were just five or six of us and, to a lesser extent, it still worked when there were even 15 of us, but it was not sustainable as the business grew,” she says. “At scale it didn’t work as well because people wanted to have meetings and didn’t know who was around and when.
“I think the growth has allowed me a platform if you like. It was much harder as a smaller business to play around with different models because we couldn’t afford to make mistakes because the margin of error is much smaller.”
Blackham said she became aware of the need for mental health awareness in the workplace after securing beyondblue as a client many years ago and taking on staff who deal with anxiety.
“We have worked to really de-stigmatise mental health in the workplace,” she says. “We have a psychologist come in once a year and speak about why people should ask for help when they need it. I think we could all do with sitting inside a psychol