Crisis-proof personnel strategy with time value accounts: This is how companies secure their future

Demographic change and the shortage of skilled workers make personnel planning difficult. At the same time, flexibility and work-life balance are becoming increasingly important for employees. Partial retirement offers a solution, but it often falls short and is not only expensive, but is often perceived as “unfair”. A crisis-proof personnel strategy with time value accounts as a supplement to the company pension plan enables a more individual design of early retirement and, beyond that, the entire working life.

In the next few years, the German economy will face significant challenges: rising energy costs, supply chain problems caused by political disputes and an acute shortage of skilled workers. According to a survey from March 2025, only around three percent of companies are of the opinion that the German economy is improving.

Sectors such as healthcare, mechanical engineering, IT & software and the automotive industry are particularly affected. While more and more skilled workers are retiring, only a smaller generation is moving forward. Companies therefore have to compete more intensively for qualified employees.

The result: Companies not only have to create attractive framework conditions, but also adapt working hours individually to the employees’ living situation.

Challenges and disadvantages of traditional HR strategies

Today’s working world is dynamic and changing faster than ever before. Measures such as short-term job cuts or early retirement with severance payments quickly reduce costs, but they involve major risks:

1. Loss of know-how: Experienced employees suddenly leave the company and valuable knowledge cannot be passed on. This results in considerable costs if successors have to be trained.
2. Demotivation of the workforce: Sudden measures create uncertainty and a decline in trust in company management. These also affect work morale and motivation.
3. Limited flexibility: Decisions such as retirement are difficult to reverse and are inflexible. They are not suitable for responding to rapid economic changes.

It will therefore be crucial to respond to the dynamic economic situation with flexible instruments. The example of the transition to retirement shows that partial retirement represents a first level of flexibility, but at a fairly high price. And that the time account offers the greatest possible flexibility and also incurs few costs. At the same time, other employee groups and time-out goals can also be achieved.

First level of flexibility: partial retirement

Partial retirement is a proven model for the transition to retirement and has been an established solution for more than 20 years to enable employees to move into retirement with social security. Working hours are reduced for older employees (aged 55 and over), while the salary is almost offset by the employer and government subsidies. Companies benefit from a quick personnel adjustment process.

The problem: Partial retirement offers a lot to a few and younger employees in particular do not benefit from it, which means that the instrument reaches its limits in terms of personnel policy. From an employer’s perspective, it offers a quick way to respond to economic fluctuations.

Implementing partial retirement: Best practices

In order for partial retirement models to be implemented successfully, legal design and financial security are essential. All regulations must be clearly defined to avoid later inconsistencies. In addition, they must be designed individually so that they both fit the needs of the employees and fulfill strategic company goals.

Partial retirement is suitable for companies that need to make short-term staffing adjustments. It offers a socially acceptable alternative without personnel cuts and enables knowledge to be passed on. However, this model alone is not enough to ensure long-term sustainable HR strategies.

Crisis-proof personnel strategy with time value accounts: Sustainable supplement and alternative to partial retirement

By implementing time value accounts, companies can plan for the long term and at the same time create attractive working conditions. Employees can flexibly use credits saved through time or compensation for periods of leave.

Practical advantages for companies and employees

1. Flexibility and planning security: With time value accounts, companies can react to economic fluctuations without having to reduce staff.
2. Employee retention through time value accounts: Through innovative models, companies increase their attractiveness for skilled workers and reduce fluctuation.
3. Tax and social benefits: Time value accounts enable efficient, tax-optimized and socially secure use of saved assets.

Practical examples of the use of time accounts

Employees can use the credit they have saved for a variety of purposes, but the decisive factor is how it is structured within the company. Because not every company wants to use everything. For example, time out can be offered to look after relatives in need of care or to look after one’s own children. In these situations, the removal of financial pressure creates a significant advantage.

Among other things, the credit can be used for:

• Continuing education: Time value accounts can be used for further training measures that benefit both sides.
• Early retirement: Employees can leave their careers earlier, which makes it easier for younger successors to join the workforce.
• Part-time models with full compensation: For example, employees can work 3- or 4-day weeks without suffering financial losses. And the employer does not have to worry about any additional costs.

Time value accounts in practice: A look at implementation

Implementing time value accounts requires a well-thought-out strategy and good planning. In addition, digital solutions must be established that make administration easier. We recommend proceeding in the following steps:

• Analyze needs: Which employee groups benefit the most and which goals should be achieved?
• Legally compliant design: All tax and social security requirements must be taken into account in the model.

Important: For all working time models, the focus should be on low administrative effort and ease of use. With PensTime, time accounts can be managed intuitively and easily.

Conclusion: A sustainable HR strategy through combination models

Partial retirement and time value accounts are by no means competitors, but can be ideally combined within the company. While the former promotes short-term relief, time value accounts lay the foundation for a long-term, sustainable HR strategy that is resilient to crises. They strengthen your attractiveness as an employer, retain skilled workers in the long term and also enable tax and social advantages.

Final tip: With the time value account calculator you can already calculate how much effort it will take to achieve the employees’ personal goals and the company’s ambitions.

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