How Toyota Gothenburg moved to a 30-hour workweek and boosted profits and customer satisfaction

The video has English subtitles. If you don’t see them, press the  subtitles button in the video.

Could a 30-hour workweek work?

It not only could, for the mechanics at Toyota Center in Gothenburg Sweden it has worked incredibly well for over 10 years, leading to happier employees, happier customers and higher growth and profits.

In this short 13-minute speech, CEO Martin Banck of Toyota Center Gothenburg explains why they made the transition from a 40-hour workweek to 30 and what the results have been.

One outcome: Their mechanics now get more work done in 30 hours a week, than other mechanics do in 40. Not only is productivity higher (which you would certainly expect), their actual total output is higher!

In fact, several workplaces in Sweden are now trying it out, including hospitals and nursing homes.

I fully realize that many people are going to dismiss this out of hand. They are stuck in the cult of overwork and totally committed to the idea that working more hours always means getting more work done, even though the research shows that permanent overwork leads to poor health and low performance.

It seems counter-intuitive that you could work fewer hours and get more done, but here’s another example:

One executive, Doug Strain, the vice chairman of ESI, a computer company in Portland Oregon, saw the link between reduced hours for some and more jobs for others. At a 1990 focus group for CEOs and managers, he volunteered the following story:

When demand for a product is down, normally a company fires some people and makes the rest work twice as hard. So we put it to a vote of everyone in the plant. We asked them what they wanted to do: layoffs for some workers or thirty-two-hour workweeks for everyone. They thought about it and decided they’d rather hold the team together. So we went down to a thirty-two-hour-a-week schedule for everyone furing a down time. We took everybody’s hours and salary down – executives too.

But Strain discovered two surprises.

First, productivity did not decline. I swear to God we get as much out of them at thirty-two hours as we did at forty. So it’s not a bad business decision. But second, when economic conditions improved, we offered them one hundred percent time again. No one wanted to go back!

Never in our wildest dreams would our managers have designed a four-day week. But it’s endured at the insistence of our employees.

We need to fundamentally change how we think about time in the workplace and Toyota Gothenburg is a great example to learn from.

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3 thoughts on “How Toyota Gothenburg moved to a 30-hour workweek and boosted profits and customer satisfaction”

  1. I loov you Alex Kjerulf and I’m not even gay! If you haven’t stumbled upon it already, you’d probably be interested in TimesizingNotDownsizing.com (or tsz.bz for short), where I’m working out the language and metaphors for a new ( or-more-developed old) subdiscipline within economics that might be called worktime economics. For decades people have been arguing for shorter working hours based on quality of life or pleading for poor overworked people; in short, “dealing from a weak hand”; but I’m arguing from a viewpoint put forth as early as 1932 by New England businessman Edward Filene that it is a system REQUIREMENT to cut hours and spread the diminishing human employment to more people in order to have enough consumer spending to provide adequate markets for the massive output of highly productive technology, now including 24/7 robots and A.i. Furthermore, our failure to do that adequately (Europe) or at all (America) over the past 75 years has resulted in an over-concentration of market-demanded human employment on fewer and fewer consumer-spenders, a level of job insecurity and jobseeker surplus that has prevented wage growth from keeping pace with technological-productivity growth, and allowed a huge concentration and coagulation and decirculation of the world’s money supplies in vanishingly small populations in the topmost brackets. This is the more actionable way to view the dysfunctional “inequality” that Piketty speaks of. Timesizing.org also tracks the progress of the halfway step, worksharing alias short-time working, and day-late daily worktime news from around the world where we’re featuring your 1/06/2016 blog article, soon to be uploaded, and ominous daily headlines from America’s main newspapers, the Wall St. Journal & NY Times. So from one “shorter-hourser” to another, Keep up the good work!

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