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Shorter Work Week in Montenegro — What It Means for Productivity and Employers

The announced reduction of the work week from 40 to 35 hours raises the question of productivity in the Montenegrin economy. We analyze the risks and opportunities for employers and employees.

FP Finance Plus 15 April 2024

In an era when technological progress is leading us toward new horizons — with flying taxis, virtual currencies and remote jobs — Montenegro is making numerous decisions in favor of the broader population, while the world faces pandemics and conflicts. Sometimes one can get the impression that a paradox of abundance rules Montenegro, especially since this is happening at a time of global economic uncertainty.

The real state of economic dynamics

A legitimate question arises — what is the real state of Montenegrin economic dynamics?

  • During the COVID-19 era we had salary increases, changes to key tax rates and various financial aid packages for the economy
  • Now, during the war in Ukraine, we have pension increases and reductions in interest rates

Lately there has been more and more talk about reshaping the work environment — a shorter work week is being seriously considered. Many are wondering how all these changes will affect the economy, and employers are especially concerned.

The specific work culture in Montenegro

The culture of (non-)work in Montenegro is very specific. If a reduction in working hours became reality, it must not be allowed that the new rules are limited only to a change in the number of working hours. At the heart of that initiative must be the idea of increasing the productivity and efficiency of the workforce.

Experience from the United Kingdom and Denmark, where experiments with a shortened work week showed surprising benefits — increased productivity, reduced burnout, improved mental and physical health — can serve as inspiration. But the question is: are hospitality venues in England and Denmark packed during working hours, and do their companies have methods and systems to better track employee efficiency and productivity?

The problem of inefficiency

In Montenegro the average workday is characterized by a high degree of inefficiency:

  • Long coffee breaks
  • Excessive reading of news during working hours
  • Use of social networks in the workplace

This situation points to the need for a deep change in work culture — one that would strive for the optimization of work processes and the creation of an environment that promotes productivity and performance.

An opportunity to rebalance work and private life

The expected upcoming change — reducing the work week from 40 to 35 hours — is a good opportunity to achieve a better balance between work and private life, but also to redefine the workplace as a space where efficiency is valued and rewarded.

This move requires the engagement of all social partners in a constructive dialogue — so that, through changes in legislation and work practices, a consensus is reached that supports both workers and employers.

As one of the leaders in the European integration process, Montenegro has the chance to adopt practices that have proven successful in other EU countries — while at the same time maintaining its identity and adapting to the specifics of the domestic labor market.

Risks and open questions

In addition to opportunities, challenges must also be considered:

  • Labor shortage — many industries already have a problem, and reducing working hours may deepen it
  • Knowledge transfer — graduates who should be learning on the job will now work shorter hours, so the transition of knowledge will go more slowly
  • Pressure on the cost of labor — current regular work in certain industries will turn into overtime, which increases labor costs and indirectly the prices of products and services

These are all logical economic laws, but given that lately much has been (il)logical in economic terms — we may witness new, unforeseen situations.

The role of technology and AI

What is evident is that advanced technologies — especially artificial intelligence — will give more room for such initiatives. It is probably also “natural” that people will work much less, while machines will work more and more.

Let us hope that Montenegro will meet that new world prepared.

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