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№42 · Wellbeing & Balance

Overtime caps just arrived. How do you test a shorter working week?

New overtime caps are taking effect across Japan and your company sells software that promises a better way to work. You have to decide what kind of working-time trial to run on your own people, and how to know whether it worked.

Company
Microsoft Japan
Year
2019
Full-time staff in scope
About 2,300

The room

2019Tokyo, Japan

It is spring 2019 in Tokyo. You sit on the leadership team of Microsoft Japan, which employs about 2,300 people, and you are weighing an experiment that the press will later call the Microsoft Japan four-day week. The question is not whether to change how people work. It is how far to go, and how you will judge the result.

The national backdrop is hard to ignore. In June 2018 the Diet passed the Work Style Reform law, which the government built around the problem of long working hours. From April 2019, large employers face legal overtime caps for the first time: 45 hours a month and 360 a year as the standard, with an outer limit of 720 hours a year under special agreements. Employers must also make sure that staff with ten or more days of paid leave actually take at least five. Government survey data show why that rule exists: in 2017, workers were granted an average of 18.2 days of paid leave and took 9.3, about half.

Your own company is further along than most. Microsoft Japan introduced telework in 2007, removed core hours in 2016 and made flexible remote work available to almost every employee. Even so, your own analytics, which the company later made public, show that compared with Microsoft globally your staff spend 24 percent more time on email, copy 31 percent more recipients, spend 17 percent more time in meetings and invite 11 percent more people to each one. Flexibility has not, on its own, shortened the working day.

There is also a public reason to act. The government is running Telework Days ahead of the Tokyo 2020 Olympics, and your customers are being told to reform how they work. Microsoft sells the tools for that. A visible trial on your own staff could show customers what is possible. A trial that disrupts customers, or that produces numbers nobody believes, could do the opposite.

One proposal on the table is bold: close every office on each Friday in August and give full-time staff those days as special paid leave, with new rules on meetings and email to make four days enough. Working time would fall by roughly a fifth, and the stated goal would be to keep output where it is. Others around the table prefer something smaller, slower or easier to measure.

  • Takuya Hirano, presidentSame output from fewer working hours
  • Sales and consulting staffTime with clients when clients need them
  • Customers and partnersMicrosoft reachable on a normal Friday
  • The governmentShorter hours and more leave actually taken
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Your call

You want shorter working time without losing output. Which trial do you run?

Tap an option to see its risk. No votes are stored.What actually happened

The reveal · they chose B

What actually happened

Microsoft Japan chose option B. On April 22, 2019, it announced the Work-Life Choice Challenge Summer 2019. All five Fridays in August, from August 2 to August 30, became non-working days, full-time employees received special paid leave and every office closed. The company framed the challenge around a translated theme, “work in shorter hours, rest well, learn well”, and said it would measure the effects and publish them.

The days off came with rules for the remaining four. In July the company set a default meeting length of 30 minutes instead of 60, a default limit of five attendees, and an expectation that organizers name who is actually required. Staff were asked to use Teams chat and shared documents rather than email for quick decisions, and to use the company’s own analytics software to review their time and block periods of focused work. Employees could also claim boosted benefit points, at 1.5 to 2 times the usual rate, for learning, family travel or volunteering.

The company tried to manage the risks it had been warned about. Partners had asked whether they would bear the cost of Microsoft being closed. According to the announcement briefing, services that needed constant coverage were given different days off, partners were told in advance, and some customer-facing employees could take their days through the end of September instead. At the launch, president Takuya Hirano described keeping the same output with about 20 percent less working time as a major challenge, for himself too.

On October 31, 2019, Microsoft Japan published its self-reported results. Working days in August were down 25.4 percent on August 2018. The share of 30-minute meetings was up 46 percent and remote meetings up 21 percent. Printing was down 58.7 percent and electricity use down 23.1 percent, both against August 2016. In a company survey, 92.1 percent of responses about the four-day week were positive. The headline figure was labor productivity, measured as sales per employee, which the company said was up 39.9 percent on August 2018.

  1. Japan’s Diet passes the Work Style Reform law, including the first legal overtime caps.

  2. Overtime caps take effect for large firms. Microsoft Japan announces its summer challenge on April 22.

  3. Offices close on all five Fridays; full-time staff take special paid leave.

  4. Microsoft Japan publishes self-reported results, including a 39.9% rise in sales per employee.

  5. The company moves the 39.9% figure out of the results, saying the trial alone did not produce it.

  6. A planned winter challenge drops special leave but keeps the meeting and email rules.

25.4%fewer working days than August 2018
39.9%sales per employee, not credited to trial alone
92.1%of survey responses positive on four-day week

The 39.9 percent figure travelled fast. TIME, CNBC and many others reported that productivity had jumped about 40 percent. On November 8, 2019, Microsoft Japan added a notice to its release: the figure was factual but had not been achieved by the challenge alone and reflected various factors, so to avoid misunderstanding it was moved out of the list of results. The company had also listed its own problems, including uneven take-up between employees and departments, some managers who did not yet understand flexible working, and differing views on whether the challenge inconvenienced customers. At the results briefing, staff in sales described the difficulty of being off while clients were working, and consultants said a fixed day off could feel like a limit on their performance.

The company did not repeat the paid Fridays that winter. It announced a Work-Life Choice Challenge Winter 2019 with no special leave, asking employees to combine existing paid and year-end leave, keep the meeting and email rules, and compete internally for ideas on working, resting and learning. In late November 2019, Forbes Japan reported that employees record their hours daily against a 7.5-hour standard, with alerts to supervisors when hours pass a set threshold. The lasting changes, in other words, were the rules and the measurement, not the extra day.

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The psychology: Parkinson’s law

C. Northcote Parkinson, a British historian, set out the idea in a satirical essay in The Economist in 1955, drawing on his experience of bureaucracy as an army staff officer. His target was offices where tasks, meetings and paperwork grow to fill whatever hours are on offer. Later researchers turned the joke into testable questions: do tighter limits change how people work, and when do they help or hurt?

The Microsoft Japan trial was built on the hopeful half of Parkinson’s law. If an hour-long meeting fills an hour because it is booked for an hour, then a 30-minute default should shrink it. If a week of work fills five days partly because five days are available, then four days with sharper rules might hold most of the output. The meeting data fits the first part: the share of 30-minute meetings rose by almost half once the default changed.

The research also shows the limits of the idea. Deadlines help most when someone sets them well and spaces them sensibly, and long hours lose value gradually rather than at a sharp cliff. A time limit is a design tool, not a guarantee. It works on work that was padded, and it does nothing for work that genuinely needs the time, such as covering clients who are open on Fridays.

The psychology

Parkinson’s lawAlso: deadline effects, time pressure

The observation that work expands to fill the time available, so the time a team allots to a task shapes how much time the task ends up taking.

Ariely & Wertenbroch (2002)

People chose to impose costly deadlines on themselves, but in a proofreading experiment with 60 paid participants, evenly spaced external deadlines produced more errors found and higher earnings than self-chosen deadlines or one final deadline.

Pencavel (2014)

Using 1916 data on British munition workers, output rose in step with hours up to about 49 a week and more slowly after; output at 70 hours differed little from output at 56.

Why smart people fall for it

Three forces explain why a hard time limit changed habits, and why its headline number still needed care.

  1. A fixed limit forces choices

    With one day removed for everyone at once, teams had to decide which meetings and tasks mattered, rather than fitting everything in as before.

  2. Defaults do the daily work

    A 30-minute, five-person meeting default changed thousands of small decisions without asking anyone to try harder.

  3. Metrics shape the story

    Sales per employee in one month moves for many reasons, so a striking figure invited a stronger conclusion than the design could support.

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Did the Microsoft Japan four-day week really raise productivity?

The honest answer is that the trial did not show it, and the company itself said so. The 39.9 percent figure compared sales per employee in August 2019 with August 2018. That measure does not count hours at all. It rises if sales grow or headcount falls, and in a software business a month’s sales often reflect deals agreed long before. When Microsoft Japan added its November notice, it was acknowledging exactly this: the number was real, but it was not evidence that five Fridays off had caused it.

The design also made attribution hard. It was a single month compared with the same month a year earlier, with no comparison group. The days off arrived together with new meeting defaults, a push towards chat over email, focus-time tools and boosted benefits, so even a clean result could not say which change mattered. The electricity and printing savings were measured against August 2016 and partly reflect offices simply being closed for five days.

The employee survey is more informative, but it is still the company measuring its own programme. Most responses were positive, and the results briefing added nuance the headline missed: of 856 free-text comments, about one in ten was strongly negative, and the presenter said the result should not be read as a simple nine-to-one vote. Sales staff and consultants, whose work depends on client hours, found the fixed day hardest.

Outside commentary pointed in the same direction. Unseen Japan, in a piece whose author disclosed that he worked for Microsoft, noted that similar schemes had already been tried in Japan, including Fast Retailing’s four ten-hour days, which did not reduce total hours. Fortune quoted the sociologist Phyllis Moen, who argued that cutting office days does little to relieve strain unless workload and constant availability are also addressed. None of this means the trial failed. It means the evidence it produced was about habits and satisfaction, not about output.

What does research say about time limits and output?

The most careful evidence on deadlines comes from Dan Ariely and Klaus Wertenbroch. In classroom and laboratory studies, people were willing to bind themselves with costly deadlines, which suggests they knew they would otherwise put work off. But the self-chosen deadlines were not set well. In the proofreading experiment, evenly spaced deadlines set by the researchers beat both self-chosen deadlines and a single final deadline, on errors found and on money earned.

For managers that is a useful finding. A limit set by the organisation, evenly applied, can work better than leaving each person to manage their own time. Microsoft Japan’s company-wide closure and meeting defaults were limits of that kind. They did not ask each employee to decide how short a meeting should be; they changed the starting point for everyone.

On hours themselves, John Pencavel’s analysis of First World War munition workers found that output kept pace with hours up to roughly 49 a week and then grew more slowly, so that 70 hours produced little more than 56. Weeks without a rest day also produced less. Pencavel was clear that the sample was small, the work was physical and the conditions were unusual, so the numbers do not transfer directly to an office in Tokyo. The broader point does: beyond some level, extra hours add less than they appear to.

Taken together, the research supports a modest version of Parkinson’s law. Well-designed limits can squeeze out padding, and very long hours tend to buy less than their cost. It does not support the idea that any cut in time produces a matching gain in output, and it says nothing about work that is driven by when customers need you.

How would a modern team design the trial?

A modern team would start by choosing the outcome measures before the trial begins, and pick ones the change could plausibly move: hours worked, meeting time, project delivery against plan, customer response times, staff survey scores and voluntary leave taken. Sales per employee can be tracked, but it should be labelled as context rather than a result.

It would build in a comparison. That could be a staggered rollout, with some departments starting a quarter later, or a matched team that keeps its old pattern for a while. Running the trial for several months, across busy and quiet periods, would separate the effect of the policy from the effect of the season.

It would design for the roles that find a fixed day hardest. Microsoft Japan already let some customer-facing staff take their days later, and it later dropped the paid Fridays in favour of flexible leave plus the meeting rules. A modern design might start there: rotating days off for client-facing teams, shared cover, and a clear message to customers about who answers on which day.

Finally, it would cut work, not just time. The parts of the Microsoft Japan programme that lasted were the meeting defaults, the shift away from email and the daily recording of hours with alerts to supervisors. Those are the changes that make a shorter week possible. Without them, a day off can simply push the same load into four longer days.

The manager's playbook

  1. Choose your measures before the trialAgree in advance which outcomes count as success, such as hours, delivery and customer response times, so a striking side number cannot become the headline.
  2. Keep a comparison groupStagger the start between departments or keep a matched team on the old pattern, so you can separate the policy’s effect from everything else.
  3. Change defaults, not just daysSet shorter default meeting lengths, smaller invite lists and clear channels for quick decisions, so the remaining days can absorb the work.
  4. Plan cover for client-facing rolesGive sales, support and consulting teams rotating days or shared cover, and tell customers in advance who is available when.
  5. Run it across more than one seasonA single month can be distorted by holidays and deal timing; several months show whether results hold.
Pro tip

Publish the limits of your trial alongside the results. Microsoft Japan’s own list of problems, such as uneven take-up and client concerns, was more useful to other companies than the headline number.

Risk

A visible time limit can become a performance target in disguise. If workload is not reduced, staff may compress the same work into fewer days or answer clients on their day off, and the trial will look better on paper than it feels in practice.

Your turn

Which recurring meeting or task in your team would shrink if you halved its time?

Pick one and test a shorter default for a month, with a measure agreed in advance.

Questions people ask

Did Microsoft Japan’s four-day week increase productivity by 40%?

Microsoft Japan reported that sales per employee in August 2019 were 39.9 percent higher than in August 2018. On November 8, 2019, it added a notice saying the figure was not achieved by the challenge alone and moved it out of the trial results. The figure was self-reported and the trial had no comparison group.

How long was the Microsoft Japan four-day week trial?

The Work-Life Choice Challenge Summer 2019 ran in August 2019. Offices closed on all five Fridays, August 2 to August 30, and the related support programme ran from July to the end of September. Some customer-facing staff could take their days off later, up to the end of September.

Did Microsoft Japan cut pay during the four-day week?

No. Full-time employees received the five Fridays as special paid leave. The company also offered boosted benefit points for learning, family travel and volunteering during the period.

What is Parkinson’s law?

Parkinson’s law is the observation, first made by historian C. Northcote Parkinson in The Economist in 1955, that work expands to fill the time available. Managers use it to argue that tighter limits on meetings and tasks can remove padding, though research suggests limits help most when they are well set and evenly spaced.

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More cases in the series

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Sources

  1. 「週勤 4 日 & 週休 3 日」を柱とする自社実践プロジェクト「ワークライフチョイス チャレンジ 2019 夏」の効果測定結果を公開 — Microsoft Japan News Center (October 31, 2019, notice added November 8, 2019)
  2. 「週勤 4 日&週休 3 日」を柱とする自社実践プロジェクト「ワークライフチョイス チャレンジ 2019 夏」を開始 — Microsoft Japan News Center (July 23, 2019)
  3. 働き方改革の加速に向けて、「ワークライフチョイス」を推進する自社実践プロジェクトを本年夏に実施 — Microsoft Japan News Center (April 22, 2019)
  4. 日本マイクロソフト、今夏週休3日制を導入。休みを社員の創造性向上に — PC Watch, Impress (April 22, 2019)
  5. 全社一斉「週休3日制」が社員の意識変革につながる — PC Watch, Impress (October 31, 2019)
  6. 週休3日だけじゃない。日本マイクロソフトが示す新時代の働き方 — Forbes Japan (November 26, 2019)
  7. Microsoft’s Japanese Division Switched to a 4-Day Workweek — Then Productivity Skyrocketed — TIME / Bloomberg (November 4, 2019)
  8. Microsoft Japan 4-day work week experiment sees productivity jump 40 percent — CNBC (November 4, 2019)
  9. Microsoft’s Four-Day Workweek in Japan Isn’t New — Unseen Japan (December 3, 2019)
  10. Microsoft Proved a Four-Day Workweek Improved Productivity in Japan. Can Its Results Translate to the U.S.? — Fortune (November 24, 2019)
  11. Work Style Reform Bill Enacted — Japan Labor Issues 2(10), JILPT (November 2018)
  12. 平成31年就労条件総合調査の概況 — Ministry of Health, Labour and Welfare, Japan (October 29, 2019)
  13. C. Northcote Parkinson — Encyclopaedia Britannica
  14. Procrastination, deadlines, and performance: self-control by precommitment — Psychological Science 13(3), Ariely & Wertenbroch (2002), Duke Scholars
  15. Procrastination, Deadlines, and Performance (working paper) — INSEAD Working Paper 2001/09/MKT, Ariely & Wertenbroch
  16. The Productivity of Working Hours — IZA Discussion Paper 8129, John Pencavel (2014)

This case is written for education. It looks at how an organisation designed work, from public records and published research. It is not medical, mental-health or legal advice; if you are concerned about your own health, speak to a qualified professional.

Business Psychology — Your Call · Reviewed by the Kurums editorial team · Updated 31 October 2026


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