Israel’s Shortened Workweek Boosts Productivity but Strains Managers and Some Employees
A recent study conducted between 2021 and 2023 by Key Impact Research Institute, in collaboration with Israel’s Ministry of Finance, Civil Service Commission, General Federation of Labor, and Joint Taub Center, examined the effects of reducing the public sector workweek from 42 to 40 hours. The research analyzed tens of thousands of computerized attendance records and surveyed thousands of employees and managers across dozens of public organizations.
The findings reveal that the reduction in working hours led to improved productivity and work quality. About 43% of employees reported better work quality, and 34% noted increased output. Managers also observed a 33% improvement in employee performance. The study attributes these gains to enhanced employee well-being, with workers experiencing less fatigue and better work-life balance, resulting in greater focus and efficiency during work hours.
The reform, which has been gradually implemented since 1990 and accelerated in 2024, also yielded positive effects outside the workplace. Approximately 70% of employees and 61% of managers expressed high satisfaction with the change, citing reduced end-of-day exhaustion. Over half of the employees said the shorter workweek allowed more family time, while others used the extra hours for rest, health, hobbies, personal development, or household management.
Data showed a monthly average reduction of 8.5 actual working hours for full-time employees, nearly reaching the reform’s target. Contrary to concerns, overtime hours did not increase; in most organizations, overtime remained stable or declined. Financially, employees maintained their salaries despite fewer hours, effectively increasing the hourly wage. The reform also narrowed gender gaps in working hours, with men reducing their monthly hours more significantly than women, who often worked fewer hours pre-reform due to family responsibilities.
However, the report highlights challenges: middle and senior managers largely did not reduce their working hours due to ongoing responsibilities, often working beyond the new limits. Additionally, 17% of employees reported moderate increases in workload or hours, sometimes because colleagues leaving earlier shifted tasks onto them. Some employees worked extra hours without additional pay due to limited overtime budgets.
Overall, while the shorter workweek improved productivity and employee satisfaction, it also imposed uneven burdens within organizations, particularly on management and certain staff members.
