https://www.npr.org/2021/07/06/1013348626/iceland-finds-majo...
> Now, research out of Iceland has found that working fewer hours for the same pay led to improved well-being among workers, with no loss in productivity. In fact, in some places, workers were more productive after cutting back their hours.
For the record I fully support any push to reduce the amount of work people are expected to do, but claiming there's no impact because of productivity gains just doesn't add up in many cases.
For sure, some jobs are more affected than others. But there are few jobs that aren't affected at all, and we shouldn't cut off the nose to spite the face.
The study wasn't restricted to desk jobs. Broader studies and international comparisons lead to a similar though weaker conclusion; in general more working hours over the range seen in most of the world (from about the mid-20s average hours worked per week, including both full workweek length and time off up) leads to a dramatic fall off in per-hour productivity.
Maybe, maybe not. Perhaps being better rested makes them collaborate better with the other chefs. Maybe the improved morale helps come up with a new menu item, or a more efficient way to make a dish. Maybe they wind up staving off carpal tunnel.
But no task that actually needs done is purely coverage related. If you want someone to watch dor security purposes, you want them to actually effectively secure it to some level, and if average ability to do that drops from overwork you need more people; if you want someone to run a cash register, just having a body next to it isn't enough, they have to actually perform correctly.
This is similar to what's happening right now with companies that try to do locality adjustments for remote workers -- they get out-competed by companies willing to pay full price regardless of location. Eventually this will cause locality adjustments to vanish completely imo.
Assuming per-hour productivity is constant, which it is not; productivity goes down with more hours worked (both in a “full work week” and in the annual number of full work weeks.)
A rule of thumb is a worker's full cost is 2x their salary in the US. This varies, but it makes the math easy.
So costs would increase about double that. But if your workers are doing creative work, they might be more productive now per hour and that might offset the costs.
Declining marginal productivity by hours worked per unit time definitely applies to repetitive physical labor past, too.
If you have 90 units of work to be done you might hire 9 workers at 10 units each. If the standard work goes down by 10%, you now need 10 workers at 9 units each. Your workers have increased by 11.1% (given by 1-1/(1-0.1))
A reduction from 40 to 32 would reduce hours per worker by 20% but increase workers and total health care costs by 25%.