The purpose of this study was to demonstrate the potential usefulness of conjoint analysis for organizational research, as evidenced in estimating the compensating wage differential of the four‐day workweek. Five hundred and seventeen employees of an insurance company on the four‐day workweek rated their preferences for increments and decrements in compensation and vacation time on both a four‐day and five‐day workweek. The data were analysed via conjoint analysis. The results revealed the four‐day workweek schedule had a positive compensating wage differential of approximately US$1161, or about 6% of the sample's annual salary. The findings were discussed in terms of the prospects of using conjoint analysis for organizational research, including means of data collection, stimulus construction, parameter estimation methods, reliability, validity and computer‐interact