40-Hour Work Week, Obsolete?

Did you know, the 40-hour work week was developed as a result of the 1st Industrial Revolution? Introduced by Henry Ford in 1926, to optimize productivity and provide work-life balance to workers. Think about that…it’s almost been 100 years since the production-based work week standard was established! The standard was established to address the physical production of a physical product. The question is, is this still a meaningful work-life balance standard for knowledge workers in a service economy?

Enter the 4th Industrial Revolution-Digital and the rise of The Knowledge Workers; toss in a Global Pandemic- locking down societies for 2 years, resulting in accelerating access and adoption of virtual tools into everyday life. Truth be told, Covid-19 did much more than accelerate the virtual ways of working and digital technologies like VR and generative AI, it put the brakes on the way we were trained to think about work-life and life in general. We took the time to reimagine the way we lived, who we spent time with, how and where that time was spent. 

We began to realize; the traditional working models had been eroding since the 1980s but the expectations were still in place for employees. The traditional work mantra:

“You owed the company loyalty. Work above and beyond and someday be rewarded.”

 In contrast to what employees were experiencing.

The Current Employee Experience:

a.    The “unspoken contract” between companies and employees is long gone. Pensions eliminated in lieu of “Save for our own Retirement”, IRA campaign’s.

b.    Layoffs have become a” management tool” for companies, unable to successfully manage product design and operations in times of dynamic market shifts.

c.    Salaries, raises not keeping pace with inflation.

d.    Healthcare insurance costs on the rise

Employees are evaluating the working relationships that would give them options to do what they love, leverage their talents, grow their skills and provide for their future.

Employees are looking for a positive work environment and partnership with a company that shares their values and offers working options.

Driving Change to the 40-Hour Work Week:

The Digital era and the Global Pandemic, opened-up our imaginations to options. The world was larger, global, we were no longer tied to jobs and companies in our communities, and how far we could travel in a day to work. We could dream bigger, accomplish our life goals sooner and most important; be intentional with who we spent time with: “our families our friends our communities.”

Priorities were changing, what people valued changed. The Millennials and Gen Z workers driving the shift, prioritizing “Time” and life experiences over material things.  The Boomers and Gen X are exploring what “retirement” looks like in this new era. People are living longer and needing to work longer: do they want to work 40 hours a week, do they need to?  The legacy production model, 40+hrs in the office, work until you could retire, social constraints, is being challenged.

Work Week Model Shifts:

As countries accelerate their economies post Covid19, competing on the global stage, they are exploring and offering diverse working options. The ways of work options become more varied than the tired debate of “Remote vs Office” location.  Companies started to offer: (4) day work weeks, relocation packages, fractional workers, flex hours and alternative working models to manage operations and attract talent, in an ever-shrinking, digital global talent pool.

As HR organizations adjusted and explored shifting their work week model practices to attract and obtain talent, they began to experience the internal limitations to managing the legacy 40 hr work week. Companies are struggling to manage the rapid rate of changing work force and internal organizational structures.

Companies are no longer competing against local companies for talented knowledge workers-it is a global race.

Impediments to Moving Forward:

The evolution in technology is not always able to solve the business and employee pain points. One size does not fit all. The need for higher work schedule flexibility is bumping up against today’s Monolith HR/Payroll applications. The HR/Payroll application Industry leaders have ridged configurations, built in with long lead times for new feature changes.  In many cases, companies do not determine the new features but rather accept which new features they will activate for their companies.

The fast-paced business changes in products development and operations are pulling HR capacity from payroll tasks. This can impact payroll systems, not able to configure quickly. This can trigger overtime calculations, impacts to PTO and Holiday pay, resulting in cumbersome workarounds and manual adjustments to accommodate the shifts in work week schedules.  As HR works to identify and adjust internal policies and applications constraints.

The shortage in HR and payroll professionals is impacting already constrained capacity limitations. Are you feeling the strain of the current shortage in HR and payroll professionals? The impact on your capacity limitations is real, and the time to take action is now. HR/Payroll organizations are in need of reliable partners who understand the urgency and can swiftly address your business needs.

HR/Payroll organizations are seeking trusted partners who can quickly validate the business needs to help support these fast-moving changes, enabling companies to manage these dynamic shifts while running the business. To avoid costly mistakes, it’s important to engage with knowledgeable HR/Payroll integrators and partners that can help navigate the dynamic changes in the ways of work. The business landscape is evolving at an unprecedented pace, demanding adaptability and flexibility. To effectively manage these dynamic shifts while staying focused on core operations, you require trusted HR/Payroll integrators and partners who can provide expert guidance. Avoid costly mistakes by collaborating with professionals who are well-versed in the intricate world of HR and payroll.

To ensure that your HR/payroll teams can focus on running the business. The time to act is now. Address the shortage in HR and payroll professionals head-on by collaborating with proven experts who understand your unique challenges. Together, we can streamline your processes, adapt to dynamic changes, and position your organization for success in the evolving business landscape.

Author: Cat Collins