See what's new

Testlify
Back to HR Glossary
HR Glossary

Voluntary Reduced Worktime

Voluntary Reduced Worktime (VRWT) offers employees the opportunity to work fewer hours for better work-life balance, but may come with reduced pay and benefits.

Summarise this term with:ChatGPTGeminiClaudeGrokPerplexity

What is voluntary reduced worktime?

Voluntary Reduced Worktime (VRWT) is a flexible work arrangement where employees voluntarily choose to work fewer hours per week or year than a typical full-time schedule. This could involve a part-time job, job sharing, or even a sabbatical.

Image showing the meaning of voluntary reduced worktime
Image showing the meaning of voluntary reduced worktime

It’s designed to offer better work-life balance for employees while providing benefits to employers, such as improved employee retention and cost savings.

Key components of voluntary reduced work time

The specifics of voluntary reduced worktime can vary, but here are its common components: HBR’s flexible work research

1. Reduced hours

Employees agree to work less than 40 hours per week. This could mean opting for part-time work, sharing a role through a job sharing arrangement, or taking extended breaks, like a sabbatical.

2. Flexibility

A flexible work arrangement is central to voluntary reduced worktime. It’s especially helpful for employees with caregiving duties or personal obligations.

3. Adjusted pay

Pay is typically prorated based on the reduced hours. Employees working fewer hours will earn less than their full-time counterparts.

4. Benefits

Employees may still receive benefits, such as health insurance. However, they might need to contribute more towards premiums.

5. Job responsibilities

Employees perform the same job responsibilities but handle a reduced workload. For example, their tasks might be scaled down to match their shorter work schedule.

6. Return to full-time

Some arrangements allow employees to return to full-time employment if needed.

7. Communication

Open communication between employees and employers is vital. It ensures that both parties’ expectations are met.

8. Remote work

Many voluntary reduced worktime programs also offer work from home options, adding another layer of flexibility.

Benefits of voluntary reduced work time

Voluntary reduced worktime provides advantages for both employees and employers:

For employees:

  1. Work-life balance – Employees working fewer hours can better manage mental health and personal life.
  2. Reduced stress – A lighter workload can ease stress and improve overall well-being.
  3. Increased job satisfaction – having a say in their work schedule can enhance the employee experience and overall employee satisfaction.
  4. Better working conditions – Flexibility allows employees to design conditions that suit them, like choosing to work part time or remotely.

For employers:

  1. Employee retention – Retaining experienced workers boosts stability and reduces turnover.
  2. Cost savings – Employers save on training costs and benefits for new hires.
  3. Increased productivity – Engaged employees with high levels of job satisfaction often work more efficiently.

Drawbacks of voluntary reduced work time

Despite its benefits, VRWT comes with potential challenges:

  1. Reduced pay – Employees earn less due to fewer hours.
  2. Fewer benefits – They may pay more for benefits or lose certain perks compared to full-time employees.
  3. Lower job security – Employees in part-time jobs may feel less secure compared to those in full-time employment.
  4. Limited career development – Reduced hours can result in fewer opportunities for career advancement.
  5. Coordination issues – For employers, scheduling can be tricky, especially if job sharing or specific coverage hours are needed.
  6. Employee engagement – Employees may feel less connected to their role when working fewer hours.

Why consider voluntary reduced work time?

Voluntary reduced worktime offers a balance between personal and professional priorities. Whether it’s a way to improve mental health, adapt to new working conditions, or explore job sharing arrangements, it provides flexibility for employees working fewer hours.

For employers, it fosters a positive employee experience and supports long-term retention. SHRM’s voluntary reduced worktime guidance

Voluntary reduced worktime programs support workforce flexibility while retaining experienced employees who need reduced hours. Using pre-employment assessments alongside a structured hiring plan drives results. Strong talent acquisition focused on skills-based hiring improves outcomes.

Frequently asked questions

Voluntary reduced worktime (V-TIME) is a flexible work program that allows employees to voluntarily reduce their work hours : and corresponding pay : for a defined period. Employees maintain their employment relationship and benefits (on a prorated basis) while working fewer hours to address personal needs such as caregiving, phased retirement, educational pursuits, or personal health.

Get started.

Hire on proof, not resumes.

Run your first skills-based assessment free — no credit card required.

We use cookies to enhance your browsing experience, serve personalised ads or content, and analyse our traffic. By clicking "Accept All", you consent to our use of cookies.