Medibank is expanding its four-day work week trial, doubling the number of participants from 250 to 500 employees.
The expanded trial will continue to be monitored by the Health and Wellbeing Research Unit (HoWRU) at Macquarie University’s Business School.
Medibank’s initiative is part of its broader “work. reinvented” program, aimed at increasing workplace flexibility and challenging traditional working models.
The four-day work week trial follows a 100:80:100 approach, allowing employees to maintain 100% of their pay while reducing their working hours by 20%, with the expectation that productivity remains unchanged.
Kylie Bishop, Medibank’s group lead for people, spaces and sustainability, said the expansion follows a six-month trial that showed improvements in employee wellbeing, satisfaction, and productivity.
“We’ve seen significant and sustained improvements in employee engagement, job satisfaction, and the health and wellbeing of participants while maintaining business performance and customer outcomes,” she said.
The six-month trial results showed stable productivity, with increases in both engagement (+6.7%) and job satisfaction (+4.5%).
Participants also reported improvements in work-life balance, with a 10.4% increase in their ability to disconnect from work.
Teams reduced time spent on low-value activities, such as unnecessary meetings, and adopted more efficient processes, helping them achieve performance targets while enjoying shorter work weeks.
Participants also reported better overall health, improved sleep patterns, and a reduction in stress.
Medibank is now working with Four Day Week Global and Macquarie University to identify which teams will participate in the next phase.
Bishop reaffirmed Medibank’s commitment to workplace innovation, noting that the company sees the trial as part of its broader mission to support both employees and customers.
“Our four-day work week experiment is just one of the ways we’re innovating to drive greater autonomy in the workplace and support better decision making for customers,” she said,
Medibank’s four-day work week expansion comes at a time when Australian businesses are increasing their focus on mental health and employee wellbeing.
Research by Allianz Australiaindicated that businesses are expected to spend $27.8 billion on diversity, inclusion, and mental health initiatives over the next year, with the average organisation planning to invest around $38,771.
The study highlighted ongoing concerns about burnout and fatigue in the workforce, with nearly half of all Australian workers reporting high levels of stress.
Additionally, 36% of employees are considering leaving their jobs in the next six to 12 months. A significant factor contributing to this dissatisfaction is the perceived lack of empathy from managers – 31% of workers said their managers do not show adequate understanding of personal circumstances, and 28% believe unconscious bias impacts how their performance is judged.
This lack of support has contributed to a rise in psychological workers’ compensation claims. Allianz noted a 47.5% increase in active psychological claims over the past five years, with a 30% rise in days off due to mental health issues.
Economic pressures, such as the rising cost of living, also play a role in employee dissatisfaction, as staff shortages and increased workloads exacerbate workplace stress.
Although many managers believe they are providing empathetic support – 85% reported that they show empathy toward their teams – only 46% of employees agree. The gap highlights a need for more open communication and enhanced mental health support, particularly as companies face increasing pressure to improve workplace culture in the face of economic challenges.
