Concerns Rise Among Companies Over Four-Day Workweek Implementation

In Germany, the discussion surrounding the four-day workweek is gaining significant traction, yet many businesses express apprehension regarding its potential consequences. A recent survey conducted by the Institute of the German Economy (IW), which is closely aligned with employer interests, reveals that a vast majority of companies foresee adverse effects from a mandated four-day workweek with full pay.

The IW surveyed 823 businesses across Germany to gather their insights on the potential reduction of working hours. The findings indicate that an overwhelming 94 percent of respondents believe that implementing a compulsory four-day workweek would lead to a loss in productivity and value creation. Thomas Schleiermacher, a researcher at IW, cautioned that such a widespread and unqualified introduction of a four-day workweek could inflict significant harm on many businesses and, by extension, the overall German economy.

Concerns regarding productivity are prevalent, with 70 percent of surveyed companies fearing that important tasks might remain unfinished, jeopardizing Germany's competitive standing internationally. Furthermore, 60 percent of participants expressed that the proposed workweek reduction poses a risk to the nation's prosperity.

Interestingly, while some countries in Europe are advancing towards shorter workweeks, Spain has officially reduced the standard workweek from 40 to 37.5 hours. In contrast, many businesses in Germany remain skeptical.

Though nearly half of the companies surveyed acknowledge potential benefits, particularly in attracting talent, only six percent believe that a four-day workweek would effectively address the ongoing skilled labor shortage. Alarmingly, 82 percent of the businesses have yet to trial this model.

Notably, some studies provide evidence that a four-day workweek can lead to increased productivity and employee satisfaction. For example, research conducted by the University of Münster followed over 40 companies that implemented a four-day workweek with full pay for six months in 2024. Their results indicated that 39 percent of participants intended to continue with this model following the trial period.

As the debate continues, the divide between the potential advantages and the apprehensions of German companies remains stark. The implications of a shorter workweek are complex, and further dialogue among stakeholders will be crucial to navigate this evolving landscape.