Business / Employment

Unilever sees revenue grow despite staff reducing time on the job

11:34 am on 2 November 2022

Workers were shocked when the trial was first discussed, believing it might be "too good to be true". Photo: 123RF

A four-day work week trial run by Unilever over the past 18 months has been a huge success and is being expanded to Australia.

The company's 80-strong New Zealand workforce were allowed to spend 20 percent less time at work while retaining full wages.

As a result the company saw a growth in revenue, absenteeism dropped by 34 percent, and stress dropped by a third. Work/ life conflict - the way a job impacts on personal life - fell by 67 percent.

Recommendations for change included less frequent but more efficient meetings, less reliance on emails and more use of software such as Microsoft Teams.

"We're excited to see the trial extend to Australia, and know the toolkit and learnings we realised in Aotearoa will translate well to our peers in Australia," Unilever New Zealand's managing director, Cameron Heath said.

He told Morning Report that the business has still expected 100 percent productivity so staff have been able to choose whether they worked five shorter days or fitted in all their work in four days.

"It really depends on the individual and what works for them."

Staff had valued the flexibility the scheme offered.

"We're really happy with the results of the trial" - Unilever NZ's managing director Cameron Heath

Workers were shocked when managers first offered it, believing it might be "too good to be true".

It was not compulsory to take part but the vast majority signed up.

"We have seen incredible results ... we're really happy with the results of the trial.

"What we challenge people to do is really think through the way they operate."

Cameron Health says staff are challenged on the way they do their job so they can accomplish everything in a shorter timeframe. Photo: Unilever / Tez M Photoinfo

Heath said it was not a way for the company to avoid pay increases during a period of high labour shortages.

The concept Unilever based its arrangements on was developed in New Zealand and Heath was positive that more businesses, both in this country and overseas, should adopt it.

Several other firms have started four-day weeks, including Perpetual Guardian which first trialled it in 2018.