One in Three Firms See Value in Proactive Hiring Strategies

One in Three Firms See Value in Proactive Hiring Strategies

Approximately one in three companies (36 percent) consider the active retirement option a useful tool for combating labor shortages. Conversely, about one in four businesses (28 percent) find it to be unhelpful or not helpful at all, according to a recent salary manager survey conducted by Randstad and the Ifo Institute.

According to Ifo researcher Daria Schaller, companies see the active retirement option as an opportunity to retain employees within the company even after they retire. However, some businesses worry that it does not solve the fundamental demographic problem, but merely postpones it.

Over two-thirds (70 percent) of companies reported that they were already employed individuals who were receiving state pensions before the active retirement option was introduced. For the remaining 30 percent, this was not the case. Furthermore, a vast majority (83 percent) of employees who are already at retirement age were employed by the company before that retirement; only 17 percent started in their current role after their active working life had ended.

The active retirement option is set to begin on January 1, 2026. This system is designed to incentivize employees to remain in employment after reaching the standard retirement age by offering a tax-free supplementary income of up to €2,000 per month (€24,000 annually).