The views expressed by Entrepreneur contributors are their very own.
Greece has just introduced a six-day workweek policy, effective July 1, 2024, aimed at boosting productivity and combating persistent unemployment problems. In May 2024, Greece’s unemployment rate was 10.6%, which is decrease from previous years, but still reflecting significant economic changes challengesThe query for me stays whether the best option to overcome these challenges and optimize the working population is to increase the workweek.
Although the recent policy is in its early stages, it has sparked much debate. Will Greece see increased productivity and improved economic conditions, or is this selection more prone to result in further stagnation of the workforce and a deterioration in work ethic and morale? Let’s look at each side of the coin.
Economic context
So why did Greece find itself in a situation requiring such drastic change? The answer is quite easy – Greece has been struggling economically for the past decade, especially since debt crisis in the early 2010s, when unemployment rates rose sharply almost 28% in 2013.
Of course, unsustainable, Greece has done a great job of bringing the unemployment rate all the way down to 10.6%, which indicates a recovery. However, the whole lot is relative. In fact, 10.6% stays one of the highest in EurozoneThe Greek government needed to do more and the decision to introduce a six-day working week was dictated by the have to stimulate economic activity and reduce unemployment.
Benefits of a six-day workweek
The first possibility is that a six-day workweek may lead to higher overall productivity. Of course, by increasing the variety of workdays, firms can achieve more consistent productivity and reduce downtime. Companies maximize the use of their resources in such a setup, each financially and personally. However, while this extra use can drive economic growth and reduce unemployment, you are also more prone to experience team burnout and decreased morale. What is the impact? Loss of productivity.
There are many pieces to this puzzle. Some sectors, especially those dependent on continuous operations, may gain advantage from a longer workweek. More workdays could translate into greater production and customer engagement in industries like manufacturing and services, which could help firms get better more quickly in a still fragile economy.
Greece is clearly well-versed on the issue, as the recent law will only apply to employees of personal businesses and manufacturing plants that operate 24 hours a day, including some retail and agricultural employees.
In addition, the law (specifically Act 5053/2023), which was passed by parliament in late 2023, clarifies that an worker’s extra day/hours are limited to eight hours. Employers can even determine whether an worker should come in and work that sixth day. There is flexibility that will be crucial to the success of this tactic. The incentives are also quite significant — employees would receive 40% additional time pay to cover the additional time.
Disadvantages and alternatives
Despite these potential advantages, there is definitely no guarantee that Greece shall be all sunshine and rainbows. Many studies and field experiences suggest that extending the workweek is probably not the best strategy for increasing productivity.
Longer working hours can result in worker burnout, reduced job satisfaction and lower overall productivity in the long run. A 2014 study by Stanford University found that hourly labor productivity drops significantly when the workweek exceeds 50 hours, and after 55 hours there is such a sharp drop that further work becomes pointless.
In addition, the quality of labor can suffer when employees are overworked. Creative and cognitive tasks, which are key in many modern industries, are often higher performed with adequate rest and a balanced work-life schedule.
Sure, all of us have different work styles, but the current shift toward distant and asynchronous work models is benefiting employees across the board. Flexibility can improve worker productivity and well-being, so long as you select them rigorously.
Adopting modern work practices
Starting with this last point, we know that Greece cannot select its employees, so it does not have the luxury of specifying specific industries or work methods for specific staff. Therefore, it makes sense to implement a fairly broad “fix”, even if it is not comprehensive.
But I ponder whether they won’t profit more from adopting modern ways of working that emphasize flexibility, distant work, and asynchronous communication as ways to enhance productivity.
On Bubbleswe’re facilitating asynchronous communication and changing the way colleagues conduct virtual meetings. If building and using Bubbles has taught me anything, it’s that updates, feedback, and ideas don’t have to be shared inside the same 4 partitions. In fact, a faster, more efficient way is to be distant and more flexible.
The research have shown that engaging in asynchronous communication and collaboration has reduced the variety of real-time team meetings as much as 38%. Who knows what might have happened in terms of results if Greece had focused and invested in the efficiency of the current 40-hour workweek as a substitute of keeping it largely the same, only increasing the period of time people spend doing it.
To put this justification into positive context, we are able to look at firms like Atlassian AND Loosewhich reported higher levels of worker satisfaction and productivity by reducing the variety of meetings and focusing on results somewhat than hours worked.
I fully understand the idea, but whether it is done appropriately is one other matter. While the decision makes sense in the economic context of Greece, it is crucial to think about the potential long-term effects on worker well-being and productivity, and due to this fact the alternatives to optimizing the current format of Greek work culture and finding a balance between economic growth and morale.