Back in 2015, Iceland kicked off a workplace experiment that raised a few eyebrows: a four-day workweek with no cut to pay. At the time, critics were ready with their usual warnings, lower productivity, rising costs, and a drop in service standards. But nearly a decade later, those doubts have been well and truly put to bed.
Fast forward to today, and about 90% of Iceland’s workforce has shifted to a shorter workweek. Not only did they trim hours (from 40 to 36 a week), they managed to do it without making people work longer days, unlike countries like Belgium, which compressed 40 hours into four longer stints.
The result? Productivity stayed the same, and in some cases, it actually went up. Not bad for an idea that many once dismissed as idealistic fluff.
Work Smarter, Not Longer: Just Ask Gen Z
It turns out Generation Z may have had the right instincts all along. This is a cohort who’s never been sold on the idea that time at a desk equals value. They’ve consistently questioned the old model of grinding through long hours just to be seen “working.”
And Iceland proved them right. The move to a 36-hour week didn’t just protect productivity, it lifted job satisfaction, reduced stress, and gave people more space to live actual lives.
Teacher and activist María Hjálmtýsdóttir summed it up nicely:
“The reduction of the workweek has been a huge success in Iceland. For 90% of us, the 36-hour workweek means less stress, more job satisfaction, and more time to enjoy life.”
The Tech-Ready Culture Behind It
Let’s be honest, you couldn’t pull this off just anywhere. Iceland had a few cards up its sleeve. One of the biggies? A rock-solid digital infrastructure. High-speed internet reaches even the more remote parts of the country, so remote work isn’t just possible, it’s seamless.
That kind of connectivity allowed for:
- Remote collaboration and communication to thrive
- Project work to be cloud-based and flexible
- Results to matter more than physical presence
- Smart use of automation to get more done in less time
Generation Z, who basically grew up with smartphones in their hands, took to this way of working like ducks to water. They’re fluent in the tech, and they’ve shown how digital tools can unlock more freedom without compromising results.
More Than Just Work: A Ripple Effect
What’s most striking is that Iceland’s shorter workweek didn’t just change work, it changed lives.
Have a look at this snapshot:
| Benefit Area | What Actually Happened |
|---|---|
| Mental Health | Stress dropped, burnout eased, people felt better |
| Family Life | More dads stepped up at home, families grew closer |
| Community Engagement | More time for hobbies, volunteering, socialising |
| Environment | Less commuting, lower office energy use |
So the benefits weren’t just for employees, the whole society levelled up. That’s a win across the board.
Others Are Taking Notice
Since Iceland’s success, other countries have been testing the waters. Germany, Portugal, Spain, the UK, they’ve all launched pilot programmes inspired by this model.
It’s also re-ignited bigger conversations about how we define success at work. Do we really need to be chained to the 9-to-5, five days a week? Iceland’s story says no.
And with Generation Z continuing to enter the workforce, pushing for purpose, flexibility, and wellbeing, these conversations won’t be going away anytime soon.
So Where To From Here?
Iceland’s four-day week has gone from fringe idea to global case study. And it’s proven something really powerful: that a workplace focused on people can still deliver results.
For anyone still clinging to the “longer = better” mindset, maybe it’s time for a rethink. Because if this tiny Nordic nation can transform its entire approach to work, and thrive, then surely the rest of us can take a leaf out of that same book.
Want to explore how you can create better balance in your own working life?
Is coaching right for me