FlexOS | Future Work

58% trade pay raises for shorter workweeks

January 24, 2025
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58% trade pay raises for shorter workweeks

As my resolution for the year—and for many others—is "Do Less With More" it’s impossible to ignore the first step: reducing work hours. A new report from Work Time Reduction and FlexOS revealed one number that caught my attention: 59% of workers prefer a four-day in-office workweek over five days remote, reinforcing the growing demand for flexibility.

Meanwhile, RTO policies are dominating the headlines, with Trump’s workplace-related executive orders reigniting debates on how and where we work—just weeks into 2025.

I’ve summarized the latest news and expert insights for you, and I can’t wait to dive deeper at our event next week. ​Let’s discuss what this means for the future of work!

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FEATURED PODCAST

With the release of Work Time Reduction’s latest report, Rethinking the Workweek: The Push for Fewer Work Hours, More Life, the data challenges traditional ideas of productivity. So to wrap up Season 4 of the Future Work Podcast: The HR Masterclass, we couldn’t have a more fitting guest than Joe O’Connor, a globally recognized leader in reduced-hour, outcomes-focused work models.

As the CEO and Co-founder of Work Time Reduction, Joe has spearheaded groundbreaking initiatives in shorter workweek models, helping organizations boost productivity while reducing hours. From launching the world’s first coordinated four-day workweek pilot in Ireland to leading large-scale trials across the UK, North America, and Australia, he has been at the forefront of this movement.

In this episode, Tim and Joe dive into how companies can work less and achieve more, the research behind reduced-hour work models, and what the future holds for flexible and efficient workplaces.

Let’s get started!

Our host, Tim, and Joe unpacked:

  • Work Time Reduction as a Productivity Strategy: Shorter workweeks, like the four-day model, enhance productivity and well-being by reducing inefficiencies and burnout including better rest, work-life balance, and psychological detachment from work.
  • Work time reduction isn't one-size-fits-all: Options include nine-day fortnights, half-day Fridays, or shorter workdays. The key is adapting strategies to organizational needs and creating a bottom-up initiative.
  • Changing Employee Priorities: Employees increasingly value time over salary, with many willing to trade pay raises for reduced hours.
  • AI as a Key Enabler: AI streamlines tasks, enabling shorter workweeks while maintaining high performance.
  • Leadership and Engagement: Success depends on leadership buy-in, clear goals, and employee-driven solutions, supported by a culture of continuous improvement.
  • A Competitive Edge: Flexible work models help organizations attract and retain top talent in a competitive market.
  • The Future of Work is About Outcomes, Not Hours: Organizations must prioritize results over time spent, with clear goals, accountability, and employee autonomy driving success.

Better first days start with better prep! 📃

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  • New-hire onboarding buddies

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HOW HYBRID WORKS

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Welcome to this week’s How Hybrid Works, your go-to section for the latest updates in hybrid work, sponsored by Tactic.

Stay ahead of the trends with expert insights, case studies, and industry news designed to help HR, workplace, and people leaders thrive in the evolving work environment.

smoosh-to-better-hybrid-workplace-liz-burow-key-points-hybrid-work-2025

The Great Smoosh: Hybrid Work’s Pressure Cooker Effect with Liz Burow

Workplace strategist Liz Burow calls it “The Great Smoosh”—the way hybrid work has compressed everything into fewer office days, creating Tuesday–Thursday surges that feel like a holiday shopping rush.

She sees today’s hybrid model as a temporary bandage, predicting it will take about five years to either evolve or unravel. To make hybrid work actually work, companies need intentionality, flexibility, and clear communication—not just policies on paper. That means using AI-driven scheduling, smart workplace tools, and structured team agreements to ensure employees aren’t fighting for space, meetings, or focus time.

The big question? How do we move from today’s messy hybrid struggles (Horizon 2) to a future-ready model (Horizon 3)? Liz believes it starts with rethinking office design and leadershipmaking in-person work something people actually want to show up for, not just another obligation.

Trump’s RTO Mandate Faces Pushback as Remote Work Persists

President Donald Trump’s return-to-office (RTO) order for 2.3 million federal workers, alongside a hiring freeze, is expected to trigger turnover, disengagement, and hiring challenges, according to industry experts like Josh Bersin.

Federal union leaders warn the policy weakens talent competitiveness, as only 2% of U.S. workers prefer full-time office work. Meanwhile, private sector RTO mandates—including JPMorgan Chase’s five-day policy—suggest broader employer shifts, despite research showing 6 in 10 employees feel more productive at home.

Yet, remote work isn’t disappearing. 10% of six-figure jobs remain remote, 60% of job seekers avoid non-remote roles, and freelancing is projected to reach 86 million workers by 2027.

This underscores the conflict between RTO mandates and government modernization efforts, particularly as the United States DOGE Service aims to automate and optimize government operations.

Our Future Work Alumnus Nick Bloom stated that hybrid WFH is highly profitable for firms—it has no net effect on productivity but significantly reduces costly turnover. That’s why 80% of Fortune 500 companies remain hybrid for managers and professionals.

Our Future Work Alumnus Brian Elliott said that forcing ​RTO contradicts the government’s own modernization goals​“If you can’t make the modest changes needed to succeed with distributed teams, how do you expect to make the massive changes needed to leverage a fundamental shift like generative AI?

As the global debate continues, our event, The Great Debate: Executives vs Employees Round-Table with Tim Oldman and Phil Kirschner, is happening next week—your last chance to register. Spaces are limited, and tickets are not guaranteed, so secure your spot now before it’s too late!

THE FUTURE OF HR ROUNDUP

I follow and summarize the news that future-forward and people-centric leaders care about, so you don't have to.

This week:

Rethinking the Workweek: Fewer Hours, More Life

A Work Time Reduction and FlexOS report highlights a growing push for shorter workweeks, as employees demand fewer but more meaningful hours.

  • 58.5% believe their company will adopt a shorter workweek within five years, with 18.5% expecting the shift within 1–2 years.
  • Surprisingly, 59% of knowledge workers would rather work four days in-office than five fully remote, and 58% are willing to sacrifice at least one year of pay increases for fewer hours36.5% willing to trade 2+ years, and 15.5% even 3+ years.
  • However, 38% still regularly overwork, with 16% working 10-hour days every week, mostly due to last-minute deadlines (48.5%) and unsustainable workloads (37%).
  • AI-powered productivity gains could play a key role—38% believe these benefits should be shared equally between companies and employees.

⁉️ What's Your Take?

The message from employees is clear—they are demanding flexibility, well-being, and a redefined approach to productivity that prioritizes outcomes over hours. For HR, the challenge isn’t whether this shift will happen, but how to implement it in a way that balances efficiency, engagement, and business success?

✅ Quick Hits:

  • Meta Layoffs Highlight AI-Driven Job Shifts: Meta’s 5% workforce reduction signals AI-driven job displacement and post-Covid workforce corrections. While Mark Zuckerberg cites performance management, critics see it as cost-cutting disguised as layoffs. Despite tech job cuts, AI and gaming roles are growing, and other industries are snapping up displaced tech talent.
  • Burnout and Engagement Rising—A Warning for HR: In 2024, burnout hit record highs, with 82% of knowledge workers reporting exhaustion (DHR Global), yet 88% still felt highly engaged—creating a dangerous retention risk. A tight job market (67%) kept employees locked in, but as hiring rebounds, overworked talent may start leaving. HR leaders must address burnout drivers now to prevent high performers from burning out or quitting as opportunities expand in 2025.

⁉️ What's Your Take?

  • Trump Ends DE&I and Gender Identity Protections: Trump’s executive order ends all federal DEIA programs within 60 days and mandates a list of agencies, contractors, and grantees involved in equity initiatives since 2021. The government will now recognize only two genders, restricting bathroom access and removing support for nonbinary and transgender employees from agency documents. How will these changes impact your workplace inclusion and talent retention? 💥

Your Weekly Must-Read Insights about the Role of HR in the Future of Work

The world of work is changing faster than the time we have to understand it.
Sign up for my weekly newsletter for an easy-to-digest breakdown of the biggest stories.

Join over 42,000 people-centric, future-forward senior leaders at companies like Apple, Amazon, Gallup, HBR, Atlassian, Microsoft, Google, and more.

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