The death of time accounting? Towards a performance-based work week

Forget the four-day work week. New research shows that one in four Australian workers expect full flexibility within five years.

The ADP Research Institute’s People at Work 2023: A Global Workforce Review found that a quarter of Australian workers are expecting to have full control over their work schedule provided they meet their job requirements within five years. A performance-based approach to the work week would rely on productivity and performance metrics over traditional time accounting.

Last year, we spoke with Inventium, whose conditional four-day working week they dubbed the “gift of the fifth”. In essence, it’s a trust-based approach where each employee is free to decide whether they have been productive enough to warrant a four-day work week.

“A sceptic might look at [our approach] and assume people would always just take the fifth day off,” said Charlotte Rush, head of product development at Inventium. In reality, though, the approach was so successful in getting employees to take greater responsibility for their performance that the trial soon became an ongoing offering at the company.

The shift was more than a timetabling change; it represented a value shift, and it helped to foster the development of a “goal-oriented culture”.

Similarly, Lauren Karan has implemented an “outcomes-based approach” to her company’s work schedules, boosting flexibility.

An optional four-day work week is one thing, but giving employees complete autonomy over the entire working week is another. Central to building an effective performance-based work week will be setting goals and putting systems in place to gauge progress in the fulfilment of those goals.

Performance metrics

As noted by Officely: “Evaluating performance in a flexible work setting requires a shift from traditional metrics. It involves focusing on outcomes rather than hours sat at a desk.” While the precise nature of these metrics will change between industries and organisations, some strategies can be broadly applied.

Firstly, as noted by Officely, employers should encourage employee self-assessment. It’s a fact that flexible work requires a higher degree of trust, no matter how rigorous the data collection is.

As noted in a recent HR Leader article, business performance data is only as effective as the efforts made to interpret it and to make changes based on it. A key way employers can squeeze more value out of data is by getting employees to self-assess their performance and set goals accordingly.

Secondly, goals must be clearly defined, clearly quantifiable, and should not be overly broad in scope. Making them specific and employing a mixture of long-term and nearer-term goals can help to keep employees on track. As noted by Officely: “Identify KPIs that align with the organisation’s goals and individual roles. These metrics can include project completion, client satisfaction, revenue generated, or innovative contributions.”

A successful flexible work culture focuses less on “inputs and processes” and more on “outcomes and results,” said David Windley, human resources leader and chief executive at IQTalent Partners.

“Having a performance-driven culture will result in successful outcomes. Flex-work employees must know the level of performance expected and what metrics will be used to measure their work,” said Mr Windley.

“The more information an employee has about expectations and KPIs, the more they will flourish in a flexible environment.”

The ADP report also explored employee sentiment around the blanket four-day working week. It found that 30 per cent of Australian workers expect it to be the norm in their industry within five years, while 11 per cent said their employers already offer a four-day week to promote positive mental health. This is an 8.6 per cent increase from just one year prior, said ADP.

“The four-day working week is no longer a distant dream,” said Kylie Baullo, managing director ANZ at ADP. “It’s rapidly becoming a tangible reality in Australia.”

Ms Baullo said the four-day working week is an innovative, mutually beneficial way employers can reward their employees over or instead of more traditional rewards such as pay rises or bonuses.

“Numerous businesses are already reaping the advantages of this change. The fact that an increasing number of companies are utilising a four-day week as a means to enhance mental health and wellbeing highlights the significant transformations in the workplace over the past few years.”