In Iceland, the 4-day workweek was fully implemented in 2019. Six years later, it has proven to be beneficial for both employers and employees. This responds to the demands of Generation Z, who have long sought an optimized work-life balance and better working hours.
Which country is being referred to? In Iceland, an experiment was launched in 2015: About 2,500 employees were to test the four-day workweek. Due to positive feedback and encouraging data, the 4-day workweek was greatly expanded in Iceland in 2019.
Since 2021, there has been a right to a 35-hour workweek at full pay, enshrined in employment contracts in Iceland.
4-Day Workweek Leads to Strong Economic Growth and Higher Satisfaction
What are the effects of the 4-day workweek? Experts have noted that the Icelandic economy has grown significantly since the transition: In 2023 alone, the economy in Iceland grew by 5 percent, making it one of the highest growth rates in Europe. In comparison, the economy in Germany shrank by 0.3 percent during the same period (via de.statis.de).
The reason for this: Employees are happier, healthier, and more productive. Eighty percent of employees with reduced working hours are satisfied with the new model. More than 60 percent report that their personal lives have improved and they feel mentally and physically more refreshed. This was reported by the magazine Presse.com.
Generation Z Has Exactly the Demands That Iceland Is Benefiting From
What are Generation Z’s demands? Generation Z (birth years 1997 to 2012) has long been calling for an optimized work-life balance and better working hours. A healthier work-life balance is at the top of Generation Z’s demands, which includes self-determination over their own working hours. The desire for flexible options is now so great that employees are willing to forgo money in exchange for more flexible working hours.
Generation Z is likely to feel validated by the positive numbers from Iceland. The demands that Generation Z has had for years are already showing positive impacts on employees’ mental health and economic performance.
A young boss explains that one has to work 80 hours a week in his company. However, this receives little positive feedback. He defends himself: As a start-up, they have to compete against heavy competition: The 22-year-old boss of a company demands that his employees work 80 hours a week: u0022We do not offer a work-life balanceu0022
