The conversation surrounding a four-day workweek has gained significant momentum, with key figures like Angela Rayner, the UK Labour Party’s deputy leader, advocating for this model. She is understood to be consulting with trade unions and businesses ahead of new legislation expected in the autumn.

Since April, workers have already had the right to ask for flexible working as soon as they start a job but firms do not have to agree. The new legislation is expected to strengthen these rights. Last month, education Minister Baroness Jacqui Smith told LBC of plans to enable a four-day week model that would allow someone to work 10 hours a day for four days instead of working eight hours a day for five days. However, the practicality of this model across all industries is a subject of ongoing debate.

Critics caution that certain sectors, particularly those requiring high-intensity labour or continuous customer interaction, may struggle with the reduced workdays. Rayner herself has acknowledged that careful planning and adaptation would be necessary to ensure that service quality and worker well-being are not adversely affected. Government ministers have clarified that they have “no plans” to force businesses to accept a four-day working week.

Fabio Dias, co-founder and CEO of Stalwart Holdings, a fintech company in the field of personalised investment portfolios, has recently shared his insights on the viability of a four-day workweek and how setting specific goals plays a critical role in making flexible work schedules effective, particularly in businesses driven by intellectual property.

Dias offers a unique perspective on this debate, grounded in the operations of Stalwart Holdings. Inspired by the business model of Coinbase Global Inc., the largest cryptocurrency exchange in the U.S. by trading volume, Dias has structured Stalwart Holdings as a fully remote, distributed company, where the traditional 9-to-5 workday has been discarded and replaced by a more fluid approach. At the heart of this approach is the strategic use of goals.

His employees are not bound by a rigid 9-to-5 schedule; instead, they enjoy the flexibility to manage their own time, allowing them to balance work and personal life in a way that suits them best. This approach is rooted in his belief that productivity is not about the number of hours spent at a desk but about the quality and impact of the work produced.

As a result, employees have the autonomy to choose when and where they work, as long as they meet their responsibilities and deliverables. This flexibility is a core element of Stalwart Holdings’ work culture, reflecting a deep trust in its employees to manage their time effectively and deliver results.

To ensure that this flexible work environment operates smoothly and maintains productivity, Dias has established a routine of regular team meetings. These meetings, held three to four times a week, are the only fixed appointments in the employees’ schedules. During these sessions, team members come together to discuss ongoing projects, share updates on their progress, and outline the tasks that lie ahead.

This regular communication ensures that everyone is aligned on the company’s goals and that any challenges or obstacles are identified and addressed promptly. It also fosters a sense of teamwork and collaboration, even in a fully remote setting, helping to maintain a cohesive and motivated team.

Beyond these meetings, the responsibility for managing work shifts to the individual employees. Each team member is tasked with setting and achieving their own objectives, which requires a high level of self-discipline and accountability. This is where the concept of goal-setting becomes critical.

“Rather than being micromanaged, employees are trusted to define their own work plans and schedules, focusing on what needs to be accomplished rather than simply clocking in hours. This approach empowers employees to take ownership of their work, encouraging them to be proactive and results-driven,” says Dias, adding that “it also allows them to tailor their work habits to their personal strengths and preferences, which can lead to higher job satisfaction and better overall performance.”

To support this system, “we implement the SMART framework for goal-setting, ensuring that every task or project is approached with clarity and purpose,” explain Dias. “Every Monday, specific, measurable, achievable, relevant, and time-bound (SMART) goals are established for each employee.”

These goals serve as clear targets for the week, providing direction and focus. By setting specific objectives that are both realistic and aligned with the company’s broader strategic goals, employees know exactly what is expected of them.

At the same time, the measurability of these goals allows both the employee and the company to track progress, whilst the time-bound aspect ensures that deadlines are met. The assumption is that this structured approach to goal-setting not only drives productivity but also helps employees stay motivated and engaged.

Dias emphasises that these goals provide the necessary structure and focus in an otherwise flexible work environment. “This model prioritises outcomes over hours spent at a desk,” he explains. “Employees are assessed weekly on their performance. If someone falls short of their goals, they voluntarily adjust their schedules to ensure they meet their targets. Conversely, exceeding these goals is rewarded with additional time off.”

Dias believes that this goal-oriented model is particularly well-suited to industries reliant on intellectual property, like fintech. “This model may not be successful for all companies,” Dias admits, “but it is very effective for businesses that depend on intellectual capital. For these companies, I would expect a goals-based model to be more effective than the four-day week being proposed by Labour.”

However, Dias also recognises the limitations of the four-day workweek in other sectors. In industries where work is physically demanding or involves constant customer interaction—such as manufacturing or retail—workers might struggle with the increased daily hours required to maintain satisfactory productivity across fewer days.

“In these industries, workers might end up exhausted by working longer hours each day,” Dias notes. “If people need to work fewer days for personal reasons and can’t extend their hours worked within a single day without becoming fatigued, they must also be realistic about their own earnings expectations.”

Read more:
Beyond the Four-day Week: CEO of Small Financial Services Business Discusses Flexible Working

By