Business Education

Business Owners Thinking about Switching to a 4-Day Workweek Here’s What You Really Need to Know

The 4-day workweek continues to gain traction, though it’s a long, long way from becoming standard. Still, recent trials by companies have shown promise for reducing the workweek by one day (something instituted almost one-hundred years ago in 1926 by Henry Ford).

The change is definitely full of ostensible advantages – and big potential. But, this certainly doesn’t mean it’s all upside and no downside. So, let’s take a look at what business owners need to know about switching to a 4-day workweek and what to expect.

4-Day Workweek Pros

Switching to a 4-day workweek can have several benefits for a business. While some are obvious, others may not be so intuitive. Here are a few reasons a company might want to switch over:

Increased productivity

Research shows that shorter workweeks can lead to increased productivity. Employees may feel more motivated to get work done if they have more time to rest and recharge.

Better work-life balance

A 4-day workweek can give employees more time to spend with their families and pursue personal interests, leading to better mental health and job satisfaction.

Cost savings

A shorter workweek may lead to reduced operating costs for businesses, such as lower energy bills and reduced use of office resources through less use of computers, lights, climate control, and more. It can also help to rein in office expenses as it offers an opportunity to scrutinize spending expenses.

It’s hard to say if many employers will find the 4-day workweek structure agreeable. Everyone is watching these kinds of experiments and learning. Plus, it depends on how the economy and workforce evolve and whether these become new expectations from the vast majority of the workforce—as being able to work at least part-time remotely has become for most knowledge workers. —Boston University

So, the very fact that a business will be operating fewer hours translates directly into operating expense savings. (This is something that generally comes to light when there’s a big change and businesses are forced to examine their spending amounts and frequency.)

Attract and retain talent

Offering a 4-day workweek can be a unique and attractive perk that helps businesses stand out in a competitive job market. It can also help retain current employees by increasing their job satisfaction and loyalty.

4-Day Workweek Cons

While these are certainly compelling reasons and sound good in theory, in practice they may not necessarily materialize (or simply manifest in different forms). Of course, as with any new idea, there are bound to be possible drawbacks and problems that could arise unexpectedly. Here are some things you might encounter by adopting a 4-day workweek:

Reduced hours

A 4-day workweek means employees will work fewer hours, which could lead to reduced productivity and output, especially for businesses that require around-the-clock operations.

Workload distribution

Businesses may need to redistribute workloads or hire additional staff to compensate for the lost hours of those who are working a 4-day week.

Operational difficulties

A 4-day workweek could create operational difficulties, such as coordinating schedules with clients or customers who operate on a 5-day schedule.

Reduced profits

Reduced hours could lead to lower profits for businesses that rely on hourly work or have tight deadlines to meet.

Ultimately, whether a 4-day workweek is a good fit for a business depends on its unique needs and goals. It’s important for businesses to carefully consider the potential advantages and disadvantages before making the switch.

What other considerations would you suggest be a part of these? Please take a moment or two to comment so others can benefit from your thoughts and experiences!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Is Crazy Creating Chaos in Your Company?

May 5, 2017 No Comments

We all deal with crazy (read: difficult) people in life. They are rude, obnoxious, oblivious, pitiful, without fault, always victims, stir up drama, and what’s worse, don’t know so. You see, the problem with him or her is someone else besides he or she: another coworker, a family member, perhaps even you. As the head of an organization, no matter its size, you’re bound to run into crazy and what’s simply insane is the fact that you let them through the door in the first place. This is just one way business owners and managers rationalize a situation that’s spiraling out of control. “It’s a phase,” or “he or she just needs a little extra motivation.” Though these thoughts might bring a modicum of comfort, it will be short-lived. If you are faced with an employee that’s ultimately doing more harm than good, you’ve got to deal with the situation before it has time to inflict more damage. Ways to Deal with Difficult Employees In most instances, people that behave this way aren’t at all aware of reality. While you and the rest of your team know it, the problem personality probably has a peculiar position. This is a moving or adaptable perception that assigns blame away from him or her. Of course, this makes things worse because he or she won’t be easily convinced as to what’s truly going on. Often, when an employee is difficult we stop paying attention to what’s actually going on. We’re irritated, it seems hopeless, and we’ve already decided what we think about the employee – so we just turn our attention to other things, out of a combination of avoidance and self-protection. But the best managers get very attentive when someone’s not doing well. They know their best shot at improving the situation lies in having the clearest possible understanding of the situation… —Forbes.com The very first thing you ought to do is to take stock of the dynamics. Put yourself in his or her shoes to try and gain some perspective. If that comes up short and doesn’t provide any tangible answers, you now know he or she is the real source of the problem. Fortunately, there are steps you can take to take crazy out of the company: Separate fact from friction. Yes, friction, as well as fiction. Friction between employees can easily lead to you taking sides because of your affinity for one over the other, which is where fiction comes into play. You should act on facts, not feelings, and not because of favorites. Don’t confuse performance with conduct. One rationalization for keeping problematic employees in the company is because of their so-called “redeeming qualities.” While he or she might well possess some great performance traits, it is his or her conduct that’s actually most important. What he or she might be producing individually could well be undermining his or her peers. Take time to listen and offer solutions. Should the person who brings crazy chaos into your company be a productive team member, you ought to try to invoke a turn-around. Go into a private place and ask if he or she is having any problems, then, tactfully offer solutions. If the response is knee-jerk or obtuse, it’s probably time for ultimatums. Lend a helping hand. Not your own, but someone within your organization you trust. This works best peer-to-peer, where coaching captures cooperation. Though this can work wonders, it can also become a tempting choice in the future. Don’t use it as the fallback position or you’ll simply be known for passing difficult personalities out for others to deal with. Ultimately, you are fighting to deal with a situation, not to win by wrangling control away. You want to create a solution, not to win an argument. If you do chose the latter, you are choosing to join in the craziness and even make the environment worse. Also, know when you’re at your limit, as not every situation can be resolved. There will be times when simply parting ways will be the best solution for you and your business. [shareaholic app=”follow_buttons” id=”26833294″]

Easy Ways to Build Up Retained Business Earnings

June 23, 2021 No Comments

The U.S. Bureau of Labor Statistics estimates about one-third of new businesses fail in their first two years of operation. Approximately half go out of business within the first five years. Banking statistics reveal around 82 percent fail due to cash flow issues. Those are grim and stark figures. But, these unfortunate circumstances can be avoided by building up a business emergency fund in the form of retained earnings. Top Reasons to Save Retained Earnings There are several benefits to saving retained earnings in any business, no matter how small. (But more particularly, for medium to large sized organizations.) Obviously the most important is for emergency situations. It could be a natural disaster, a pandemic, a sizable dip in the economy. Regardless, emergencies do happen and your business will benefit from having savings in-place. Retained earnings reflect the amount of net income a business has left over after dividends have been paid to shareholders. Anything that affects net income, such as operating expenses, depreciation, and cost of goods sold, will affect the statement of retained earnings. —The Blueprint, a Motley Fool Service Another advantage of having retained earnings ready-to-go is for opportunity buys. Your business might have the good fortune of being able to purchase inventory and/or equipment in bulk at a substantial discount. Or, there might well be a circumstance where cash becomes temporarily tight. Retained earnings are an ideal source of capital that can later be replenished. Clever Ways to Save Retained Business Earnings It’s not always easy (or simple) to put aside money within a business that isn’t specifically for something like inventory, equipment, materials, et cetera. But, there are ways to save retained earnings for your business — it just takes a substantial amount of discipline and patience. Here are some effective ways to save retained business earnings: Make it simple. Rather than trying to save money in a business checking account and “pad” the balance, open a dedicated account, such as a money market (since it earns interest) and that will provide more incentive to set money aside. This way, you’ll largely avoid the temptation to spend what you’ve ostensibly saved. Automate savings. Once you have a money market account to save retained earnings, set up automatic deposits to go into that account on a regularly scheduled basis. After a time, it won’t be such a big deal and you’ll grow accustomed to it. Take advantage of discounts. If you’re planning on a big purchase and have a budget set for the expense, take some time to find the same item at a discount. Or, broaden your search to find something similar but less expensive. Then, take the difference you save and put it in retained earnings. Sell off old or unused items. You’ve probably bought one or more things in the past that you rarely use or have grown out-of-date. So, go through your assets and find prime candidates to sell off and then put the money into retained earnings. Take advantage of higher revenue. Whenever business is good, it’s a good idea to put some money aside for a rainy day. While many business owners do this, it’s only sporadic. But, making this a priority and a habit will help to beef up retained earnings. What other suggestions do you have for building up retained business earnings? Please take a brief moment to leave a comment and share your thoughts and experiences so others can benefit from your strategies. Interested in learning more about business? Then just visit Waters Business Consulting Group.

Custer’s Last Stand, the Dade Massacre, and Your Business

January 10, 2025 No Comments

Small business owners often wear many hats, juggling the roles of visionary, manager, marketer, and more. While confidence is a crucial trait for any entrepreneur, unchecked arrogance and overconfidence can lead to a series of missteps that can threaten the very survival of a business.