Many employers face a conundrum these days: The combo of low unemployment, the Great Resignation, and two-plus years of remote-work options is making it difficult to attract and retain top talent, not to mention lure the talent they have back into the physical office. So workplaces are trying to figure out how to keep employees happy.

“The bargaining power is shifting towards workers,” says Benjamin Friedrich, an associate professor of strategy.

Friedrich studies labor economics so he’s often thinking about workplace trends. This includes ideas like a four-day workweek, which is gaining traction in the U.S. Today, we’ll hear from him on how some companies are approaching employee perks—from reduced hours to pet stipends—in order to set themselves apart in this tight labor market.

Is the Four-Day Workweek Right for Your Company?

Globally, public- and private-sector employers have been testing out a four-day workweek and generally deeming it a success, Friedrich says. The shorter workweek doesn’t appear to hurt productivity—often it helps—and it can improve employee morale.

“The evidence is quite positive for employees,” Friedrich observes. “Workers are less stressed, they’re potentially in better shape mentally and physically, and they’re more fulfilled because they have time to do other things.”

Still, a shortened workweek may not be right for all organizations or all workers. Friedrich offers some advice in a recent Insight article for companies considering the change.

The goal is not four 10-hour days: The benefits to employee satisfaction and productivity do not come from making people work the same number of hours in fewer days, Friedrich says. So don’t try to cram a “full” workweek into four days. You need to rethink what a full workweek looks like. “The goal is to genuinely reduce the number of hours,” Friedrich says.

Start with a pilot program: Organizations in the U.S., like Kickstarter, that are considering a shortened workweek have generally started with a pilot program. Friendrich considers this a smart move. A six-month pilot gives organizations enough time to collect data to see what is and isn’t working. Plus, starting small gives the flexibility to adapt as you go or even call it off altogether if things go really badly.

Set your goals and collect the right data: If one of your company’s goals is employee satisfaction, then make sure you’re conducting employee surveys. Or if you’re worried about productivity losses, make sure you’ve got appropriate and measurable benchmarks in place. “There are quantitative aspects to productivity and retention, so companies need to have a system in place that allows them to do this properly,” Friedrich says.

While a four-day workweek may not be feasible for many organizations, those that can offer it are setting themselves apart in this hot labor market.

“If your company is a first mover, you’re putting yourself on the map as an employer who is trying something creative and new that benefits employees’ mental and physical health,” Friedrich says. “This is a way for companies to show that they want to be a leader in improving employee well-being.”

Other Employee Perks You Can Offer

A radical reshuffling of your workweek isn’t the only way to attract and retain employees right now. In an interview with CBS Chicago, Friedrich discusses a few other, lower-stakes options. (Hint: simply putting free candy in the breakroom isn’t going to cut it anymore.)

Hybrid schedules: Yeah, no surprise here. Employees who liked working remotely during the pandemic want to retain some of that flexibility. “Some industries would consider some degree of remote work the new standard. It’s a given, and so if you don’t follow suit in that sense, it’s going to be hard to win,” Friedrich says.

Relaxed dress codes: Remember when simply having casual Fridays was a victory for the suit-haters among us? Two years of nonstop athleisure wear has made that sound quaint. “People lost their dress code completely at home and some companies are trying to embrace that,” Friedrich said. “Some people may appreciate that they can wear their nice clothes again, but they also got used to being less formal, so companies are definitely dropping the tie.”

Pet stipends: All those pandemic puppies need to be walked and snuggled while their owners are back at the office, so some employers are offering a bit of extra cash to help cover the cost. “I think it’s a great way to show workers that the company cares,” Friedrich said.

TODAY’S LEADERSHIP TIP

“Most people don’t want to believe that group brainstorming is inferior to individual ideation, at least for a finite amount of time, because we feel good in groups. Groups are stimulating. They make us feel all warm and fuzzy. But it isn’t necessarily the best way to have a creativity and innovation meeting.”

—Professor Leigh Thompson inInsight, explaining research-backed advice for better brainstorms.