A lesson for 21st-century CEOs from 19th-century factories – working longer hours doesn’t mean more productivity

Gourav Vallabh

Productivity is often defined as the amount of work produced within a specific time frame, and it is not always directly proportional to the number of hours worked. While some people believe that working extra hours results in more work being done, in fact, overworking can reduce overall efficiency. Once employees reach a certain point of fatigue, their ability to focus and concentrate diminishes. This decline in focus can lead to mistakes, the need for rework, and slower overall progress. Research conducted by the OECD (Organisation for Economic Co-operation and Development) indicates that countries with longer average working hours, such as South Korea, do not necessarily exhibit higher productivity levels. Conversely, countries that maintain a more balanced approach to working hours consistently report higher productivity rates, like the Netherlands. In effect, spending more time working often translates to less efficiency and precision in completing tasks. Moreover, long hours are not sustainable in the long term. Chronic overwork can lead to physical and mental exhaustion, prompting employees to take more sick days, reducing their availability and productivity. This cycle of burnout, absenteeism, and decreased performance undermines the goals that the long hours were intended to achieve.

Creativity is one of the most valuable skills in the workplace and has a proportional relationship with an organisation’s growth. It is essential for developing new ideas, increasing efficiency, and devising solutions to complex problems. Research shows that employees’ creativity increases when they take regular breaks and maintain a balanced work-life schedule. The “incubation” process allows the subconscious mind to work on problems when individuals step away from them. In contrast, overworking leads to mental exhaustion, stifling creativity and making innovative thinking difficult. Long hours can negatively impact employee well-being, resulting in increased stress, anxiety, and health issues. As a result, organisations may face high turnover rates and lower morale. Companies that promote long working hours may struggle to retain talented professionals who value their work-life balance. Respecting employees’ need for personal time is crucial for maintaining satisfaction and engagement.

The evidence against long working hours is clear, yet many organisations continue to pressure their employees to work beyond their limits. However, many companies are recognising the advantages of a balanced approach. By creating an environment that promotes reasonable work hours, adequate rest, and flexible schedules, businesses can help ensure that their employees remain productive, creative, and healthy. For example, Microsoft in Japan has experimented with a four-day workweek and reported a significant increase in productivity without compromising quality or output. Similarly, Scandinavian countries, known for their focus on work-life balance, consistently rank high in both productivity and employee satisfaction.

Promoting a culture that values efficiency over long hours can enhance employee performance. Success hinges on the quality of work rather than the quantity of hours worked. Allowing time for rest and personal pursuits boosts productivity and creativity. While occasional long days are acceptable, chronic overwork is detrimental. Research suggests that individuals can manage short bursts of intense work, but organisations prioritising balance and flexibility foster sustained productivity, innovation, and employee satisfaction. Ultimately, a mindful approach to working hours benefits everyone, creating a healthier work environment.

In summary, the issue of overwork is a clear case of diminishing returns: If you continue to overwork, you’ll end up working less effectively on increasingly meaningless tasks. This is a lesson that businesses learned long ago. In the 19th century, when organised labour pressured factory owners to limit workdays to 10 hours (and eventually to eight hours), management was surprised to find that productivity actually increased, while costly mistakes and accidents decreased. This principle was revisited in modern times by Harvard Business School’s Leslie Perlow and Jessica Porter, who conducted a similar experiment with knowledge workers. Their findings were consistent with earlier results — scheduled, mandatory time off, such as evenings and weekends, significantly boosted the productivity of teams of consultants. So to improve productivity, creativity and employee well-being, “kabhi kuch nahin karke ke bhi dekho”.

The writer is professor, XLRI Xavier School of Management