Australia's largest health insurer Medibank is set to embark on a groundbreaking trial of the four-day working week with no reduction in pay for its employees.
The move comes as part of a global trend towards embracing flexible work arrangements and improved work-life balance.
Productivity and pay levels remain
At the end of October, 250 Medibank employees, including part-time workers and customer-facing teams, will shift to a 100:80:100 work model.
This model allows employees to reduce their work hours by 20% while maintaining existing productivity and pay levels.
The trial is scheduled to last for six months and will be closely monitored and evaluated.
Medibank says it hopes to empower employees to focus on tasks that have the greatest impact on customers while reducing unnecessary bureaucratic processes.
The trial, affectionately referred to as 'The Gift', aims to improve employee wellbeing, reduce burnout and enhance work-life balance.
Trend towards changed work practices
The initiative reflects a broader trend towards embracing flexible work arrangements and challenging traditional work practices, particularly in light of the work-from-home model adopted by necessity during the pandemic lockdowns.
Various companies are exploring similar models, driven by the desire to improve employee well-being, work-life balance and overall job satisfaction. For example, thousands of workers at 100 companies in the UK recently started working a four-day week, demonstrating that the practice is only gaining momentum.
Medibank chief customer officer Milosh Milisavljevic said: "We already know from past experience that when our teams have more flexibility and empowerment, our customers are the big beneficiaries – satisfaction is higher, and our people can more quickly and innovatively meet customer needs."
Medibank has partnered with Macquarie University Business School's health and wellbeing research unit to independently monitor and measure the impact of the trial.
Health and productivity metrics assessed
Metrics such as customer advocacy, absenteeism, attrition, productivity and performance effectiveness will be closely analysed.
In tandem, employee health and well-being metrics, including rest and sleep patterns, will be assessed.
Medibank's approach to fostering a healthier workplace and improving employee productivity reflects a broader shift in how companies view the traditional workweek.
As this trial unfolds, it will be closely watched by employees, businesses and experts alike, potentially paving the way for more widespread adoption of flexible work arrangements in Australia and beyond.