Althams Travel revolutionised its way of working in 2022 when staff were switched to four-day contracts with no salary reduction. Managing director Sandra McAllister explains why it has proven to be a resounding success
It’s something I have felt passionately about since I was 20 years old. I had my first child at that age and had to make the tough decision to return to work full-time, leaving my baby with my parents (very fortunate I know) in order to maintain my career progression. At that time, unless you were full-time, you could not take a managerial position.
I saw many young women have to give up their jobs to look after their child, as they could not afford to pay for full-time care. I thought then, as I do now, that it is a travesty to lose talent just because they cannot afford to pay for childcare. I vowed then if I was ever in a position to make a change, I would create a far better work-life balance.
I became managing director at Althams in January 2018 and started to make plans for this change. In 2019 we surveyed the staff, agreed approval at board level, got contracts changed and we were ready to go in April 2020.
Then came Covid, so we put our plans on hold – we had no idea it would take over two years to get back to normality. Once we knew Covid was over and the business was secure, we returned to our plan and implemented the four-day week in April 2022.
All staff retained their five-day full-time salary for a four-day week. We also made the starting time 9.30am to help with childcare. Now our mums can drop their children off and get to work on time with no pre-school care costs.
I believe the purpose of work is to love your job, work hard, get on and therefore improve your life. What’s the point of working hard to better your life but having no time at all to enjoy that life? You “work to live” not “live to work”. Life is so short and precious… I lost a very close friend and colleague in March. She was just 58 and looking forward to so much, but sadly, her future was cut short.
Every manager sorts out their own rotas to suit their branch/department – flexibility is key. When agreeing this move, we said to all staff: “For this to work we need five days’ work out of four! You need to increase input and productivity and be flexible”. If branches are under pressure, then staff can increase to five days and be paid for that extra day. Staff are more than happy to do this to cover for holidays. They can also cover in a nearby branch for extra pay if they like.
The effect on the team’s wellbeing has been incredible. Sickness absence has decreased dramatically, and morale is at an all-time high. Everyone seems to love their work and appreciate just how lucky they are.
Staff productivity has increased by 40%; turnover is up 60%; and profits have increased by £500k at half-year end already. I honestly cannot see any negative impact at this present time.
It also helps attract more staff to the business. We do not have any problems recruiting. We have increased numbers in some of our busiest branches due to the current surge the industry is experiencing, and we have picked up some excellent qualified staff who are looking for a better work-life balance. We are also finding that older staff who may be approaching retirement are happier to postpone their plans to retire as they feel happier with the balance, and those vastly experienced staff are invaluable to the business.
Senior staff are all on the new four-day contract, but like all management, we have a job to do and the job has to be done in the required timeframe. All the senior team here understand that and have the flexibility to work what is required trying to keep within a four-day pattern. Some weeks that is completely possible, but sometimes extra time is required. Their benefits/rewards reflect this. As for myself, I don’t know any managing directors that can limit themselves to set work hours; we are on call, aren’t we, most of the time? That said, what I do is work from home more and try to switch off when I can.
The benefits are undeniable, work is better all round, and all staff now have a better quality of life. I do know that some business leaders will look negatively at this, but I think those are the ones who are driven first and foremost by profits. I myself have profits in the forefront of my mind too, but I also firmly believe that to get the very best out of your workforce, you have to treat them fairly, have their wellbeing at heart, and keep them happy and enjoying their work – because happy staff will work harder for you and in turn bring in those profits.
Helen Smith, manager, Althams Travel in Bolton, says:
“I have a seven-year-old daughter, Tilly, and I can drop her off at school every morning. I work a Saturday and have two days off in the week when I can get things done at home then pick her up from school and do after-school activities with her.
"All the girls in our shop, bar our apprentice Chloe, have children, and working four days makes a massive difference to everybody’s lives. Chloe loves it too, she rides horses and she appreciates the extra day to spend with them. We all feel like we have a good work-life balance and spend more time with our families.
"It seemed too good to be true at first, as I have always worked a full five-day week, and [not working] just the one extra day made such a difference. It meant I could have quality time with my daughter instead of having to drag her around in tow doing housework and chores – and keeping the five-day pay was unbelievable, a massive benefit.
"I feel much happier generally. When I come into work, I’m ready for the day, knowing what I need to get done. We’re all so much more productive. It was definitely the right decision for the business, and I tell everyone how good it is. I was loyal to Althams anyway but I can’t imagine leaving now.”