ThredUp's CEO has a warning for five-day companies: You're going to lose the talent war

Acquiring the ideal pair of jeans necessitates patience and a readiness to explore options that may not initially suit one’s style. ThredUp has cultivated a business model around this concept, enabling consumers to find what works best for them while offering a sustainable alternative for items that no longer fit their needs.

In a similar manner, organizations must prioritize ensuring that their employees are both a good fit and treated with care. This was the perspective of ThredUp's CEO, James Reinhart, as he observed the positive outcomes following the implementation of a four-day workweek. He noted significant increases in employee satisfaction, retention, and creativity and made a decisive choice to maintain this model going forward. “It was a top-level decision,” Reinhart affirmed during his participation in a panel at Fortune's Workplace Innovation Summit in Atlanta, titled "Burnout Is Breaking Work." “We're not going back.” He posits that this strategic shift positions ThredUp favorably in the competitive labor market, especially as some firms insist on five-day workweeks.

Reinhart introduced the four-day workweek during the pandemic, driven by the observation of heightened productivity and retention when employees had autonomy over their schedules. As calls for a return to traditional office settings arose with the pandemic's decline, Reinhart resolved that a four-day workweek would be a permanent aspect of ThredUp’s operations.

Malissa Clark, a psychology professor at the University of Georgia and author of "Never Not Working," backs up Reinhart's viewpoints with data. She referred to research conducted through the four-day workweek initiative, which involved rigorous trials across multiple organizations. The findings indicated that a company's apprehensions regarding the four-day workweek were largely misplaced.

“All of the well-being metrics were going up, burnout was going down, turnover was going down," Clark explained. "But companies always care about the bottom line, and this is the most exciting part: revenue went up in the majority of these companies, and it's sustained over time."

Clark highlighted a particularly surprising statistic: 96% of employees participating in those trials expressed a desire to continue with the four-day workweek, with 15% affirming they would not revert to a five-day schedule for any amount of money. "That I thought was shocking," Clark remarked.

AI is bringing talent wars

Reinhart’s advocacy for the four-day workweek extends beyond ThredUp’s internal metrics. In an era where artificial intelligence is swiftly transforming work processes, he asserts that adopting a four-day model provides a competitive advantage in attracting exceptional talent, while organizations adhering to outdated five-day frameworks risk obsolescence.

"Those exceptional employees are going to want to work at ThredUp four days a week," he stated. "And you're going to be competing against companies like mine for these exceptional people. And you're going to lose."

The appeal of the four-day workweek is also reflected in the improved morale and readiness of employees. "Rested employees and genuinely happy employees are way more creative," Reinhart observed. "When people come back on Monday morning, they've gone on hikes, they've spent time with their kids and families. They're ready to be the best version of themselves."

"They're not going to spend the first four hours of Monday getting back in the groove and reminding themselves why they still want to work here."

Clark concurs with Reinhart’s perspective, emphasizing that a genuine reduction to 32 hours should be the hallmark of a four-day workweek rather than merely compressing a 40-hour schedule into fewer days. This reduction respects the employee's life outside of work. “The bottom line with the four-day workweek is shaving those eight hours off,” she affirmed, echoing Reinhart's sentiment that happier employees tend to be more creative. "The best ideas sometimes come to me when I'm on my walk or in the shower," she noted. "Not when I'm working on something for six hours in a row."

With the essential work-life balance and adequate rest afforded by this model, combined with Reinhart’s projections regarding the transformative effects of AI on the future workplace, Clark advocates for leveraging this technological evolution for positive change.

"With every technological revolution, there are these predictions," Clark stated. "Can we please, for the love of God, implement those predictions, and at least shave off a day?"