Four-day work week pilot convinces most German firms in trial

A pilot project of the four-day work week in Germany found that almost three quarters of participants aren't returning to a five-day standard.

Some 73% of the 45 companies that participated in the six-month experiment will either fully implement the model or extend the trial, according to a report released Friday. Two large firms dropped out early due to "economic difficulties or lack of internal support."

Like other Western economies, Germany is facing a demographic challenge. More than 7 million people are expected to leave the labor force by 2035, as birthrates and immigration fall well short of what's needed to replace the aging population.

The results from the study in Europe's largest economy back up previous pilot projects in the UK, Portugal and South Africa. Staff in Germany reported significant improvements in mental and physical health, while employers saw positive effects in recruitment and retention rates. Financial performance metrics, such as revenue and profit, remained overall stable while work hours dropped, pointing to some productivity gains.

The top reasons for organizations to participate were to improve employer appeal, employee health and productivity growth.