How can compressed hours benefit tech companies?

The term ‘compressed hours’ is defined as working the same number of hours over fewer days, usually through longer shifts. As flexible working patterns gain traction, especially in tech, where innovation and adaptability are paramount, exploring how compressed hours could benefit companies in this sector is essential.

One of the main advantages of compressed hours is the potential boost to productivity while improving employee wellbeing. According to Alastair Brown, CTO at BrightHR, compressed hours allow tech employees to have an extra day off, which often results in higher job satisfaction and improved work-life balance​. Employees who are well-rested and have more control over their schedules tend to show improved focus and efficiency during their workdays, leading to better overall performance.

“Compressed hours may also be beneficial in the tech sector because they match up with the ‘sprint’ style of project management that is common in the industry,” says Brown. “’Sprints’, or short, time-boxed periods when a team collaborates to complete a set amount of work, allow employees to segment their work into discrete time periods. This working style aligns well with a compressed week, as software developers are likely used to intense periods of focus followed by periods of rest before moving on to a new project or sprint.”

The intense focus required during these sprints makes longer, concentrated workdays suitable. These allow developers to complete tasks without the interruptions associated with shorter workdays​. Also, having longer time off can help reduce burnout, a common issue in high-pressure industries like tech.

How compressed hours can benefit a business

Employee turnover and absenteeism are significant challenges for tech companies; compressed hours can help reduce both. Employees who are satisfied with their work-life balance are less likely to take time off or seek employment elsewhere. According to Brown, providing employees with the flexibility of compressed hours may reduce absenteeism and turnover, as individuals are more motivated to stay with companies that balance work and personal life​.

Furthermore, by offering compressed hours as an option, tech companies can provide a more tailored working experience for their staff. This flexibility can be particularly effective for attracting top talent and retaining current employees, especially in a competitive labor market where work-life balance is becoming a key differentiator.

Tech roles, particularly those that require deep concentration, such as software development, are well-suited to compressed hours. Adam Levine, a business coach at InnerXLab, emphasizes that roles requiring intense focus can flourish under a compressed schedule as employees have more uninterrupted time to dive into complex tasks​.

“Unlike a strict four-day week which cuts hours, compressed weeks preserve the full workload over fewer days, maintaining salary consistency and client expectations,” says Levine. “Such schedules can spark creativity and innovation as alternating work and rest cultivate an adaptable cognitive space, similar to a musician balancing intense practice with gentle breaks.”

Additionally, the flexibility of compressed hours can benefit those with caregiving responsibilities, such as parents. As Dr Andrea Cullen from CAPSLOCK highlights, childcare responsibilities often disproportionately fall on women, and flexible working arrangements, like compressed hours, can provide much-needed balance. This can help parents manage their time better and improve gender diversity in the workplace, an issue that many tech companies are keen to address​.

Challenges faced when adopting compressed hours

Despite the numerous benefits, adopting compressed hours is challenging. The tech sector, while innovative, still relies heavily on teamwork and collaboration, which can be disrupted if not all employees are on the same schedule.

As Levine points out, roles that require continuous coverage, such as customer support, may face difficulties under a compressed schedule​. Ensuring that coverage is maintained across different time zones and workdays could require additional staffing or the use of sophisticated scheduling and project management tools to avoid gaps in service.

Also, not all employees are likely to react positively to compressed hours. If this schedule is applied universally, some staff members may feel exhausted by longer working days, leading to potential burnout​. Therefore, offering compressed hours as an option rather than a mandatory schedule might be the best approach for companies looking to maintain high employee satisfaction and productivity levels.

Compressed hours vs the four-day work week

While compressed hours can be beneficial, comparing this model with a four-day work week is essential and has gained significant attention in recent years. A four-day work week typically involves employees working 80% of their usual hours but still receiving full pay, with the expectation that they will maintain 100% productivity.

The key difference between compressed hours and a four-day work week is the number of hours worked. Compressed hours retain the same overall workload but are spread over fewer days, while a four-day work week reduces the total hours. Proponents of the four-day work week argue that reducing hours without sacrificing productivity is possible, as employees may feel more motivated and focused when working fewer days. However, this model requires significant restructuring and a shift in mindset, both for employees and employers.

For tech companies, the choice between these two models may depend on the nature of the work. Roles that require deep focus and concentrated work, such as software development, may benefit more from compressed hours. Positions that rely heavily on collaboration and teamwork might find the four-day work week more suitable, as it allows employees to work fewer hours while maintaining team cohesion and morale.

Measuring the success of compressed hours

For tech companies considering the adoption of compressed hours, it’s crucial to track the success of this model using key performance indicators (KPIs) and metrics.

“KPIs might include project completion rates, turnover rates, and absenteeism,” explains Brown. “A good recommendation is to conduct regular employee surveys to give you some insight into work-life balance and overall wellbeing. It can be a good way to measure the popularity of any new initiative. Keeping an eye on these metrics can help employers ensure that the compressed working week is indeed benefitting the business and its employees.”

Levine also suggests that companies should measure timely project delivery and cost savings from reduced facility use, which could be significant, especially for businesses with large office spaces. “Tracking success could involve employee satisfaction, timely project delivery, and cost savings from reduced facility use, capturing both performance and wellbeing strides,” he explained to ITPro. By tracking these metrics, tech companies can ensure that compressed hours benefit business performance and employee satisfaction.

Compared to the four-day work week, compressed hours retain the same workload but over fewer days, making them suitable for roles that require concentrated effort. By tracking key metrics such as project completion and employee satisfaction, tech companies can evaluate the success of compressed hours and ensure they are meeting both business and employee needs. Ultimately, offering flexibility in work schedules may be a critical factor in attracting and retaining top talent in the competitive tech industry.

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