New norms for productivity

The production lines of the Industrial Revolution gave birth to our modern understanding of productivity – output per hours worked. But productivity metrics often overlook the human reality that more hours do not necessarily lead to more output. International Labour Organization (ILO) research concludes that long working hours are detrimental to our mental, physical and social health, and a World Health Organization (WHO) led study released prior to the pandemic estimated that lost productivity related to depression and anxiety disorders could cost the global economy US$1 trillion annually. Stress and burnout have been identified as a leading factor driving The Great Resignation.  

A human-centered future of work demands a new approach to productivity. As workers increasingly take on tasks that require uniquely human skills such as creativity, critical reasoning and empathy, empowering workers to harness and optimize their own productive potential can boost both worker wellbeing and business performance.  

Workers across industries and sectors are reevaluating the role of work in their lives following the pandemic. Businesses of all kinds can now attract talent by prioritizing worker health, creating more opportunities for workers to have agency over their own schedule and the flexibility to meet other personal needs and responsibilities. 

Even before the COVID-19 pandemic forced many workers into their ‘home offices’, flexible working arrangements were on the rise and research was being conducted to test alternative work models that would promote worker wellbeing and productivity.​ 

Various governments and businesses are experimenting with shorter workweeks at full pay. For example, Iceland trialed a four-day workweek between 2014 and 2021. Microsoft and Unilever have also both recently tested a four-day week, augmenting reduced hours with business practices and technology solutions designed to help employees achieve more in less time. Microsoft’s pilot in Japan, which used its own productivity tools and enforced shorter meeting times with fewer participants, reported a 40% increase in productivity. Unilever’s year-long trial began at the end of 2020 at its New Zealand office, and includes training in more lean project management techniques. 

Innovative digital talent marketplaces are helping workers find flexible work that can be combined with other commitments. Labour Xchange, for example, lets workers select the days and times that they are available to work, and The Mom Project helps mothers find flexible job opportunities with family-friendly employers. 

Additional paid time off is becoming more popular, especially in the U.S., including “volunteer time off” (or VTO), half-day Fridays in the summer, and unlimited vacation days.​ The EU Parliament is now calling for a ‘right-to-disconnect.' 

In your own organization: 

• Create an open environment for employees to express preferences about how and where they work. 

• Structure time for team collaboration but enable employees to flex where and when they do work on their own tasks. 

• Measure employee and team performance for outcomes and progress toward high-value milestones rather than outputs. 

• Evaluate flexible work options (e.g. 4-day work weeks, structured breaks) against both business outcomes and employee experience. 

• Measure adoption of all flexible work options and explore discrepancies across teams and departments. 

With others: 

• Promote better work standards by disclosing data on flexible work policies and rates of employee adoption. 

• Partner with other businesses and policymakers to improve access to flexible work for all.