Employee panel surveys, which are essential for measuring ongoing labor market developments, are facing significant challenges of respondent recruitment and retention. Even interviewer-administered panel surveys, historically considered the gold standard form of data collection, are facing high costs and nonresponse issues that threaten their sustainability and inferential capabilities. Supplementing interviewer-administration with online data collection is a popular method of reducing costs and may improve contactability and reduce nonresponse in employee surveys. However, the effects of introducing online data collection in an ongoing panel survey of the employed population have received little attention. We address this research gap by analyzing a mode design experiment embedded in the fourth wave of a German employee panel survey. Individuals were randomly assigned to the standard telephone-only design, or a sequential web-telephone mixed-mode design. An invitation letter experiment was also conducted to test the effect of mentioning the telephone follow-ups in the web survey invitation. Introducing the mixed-mode design led to a higher response rate (59.9% vs. 50.1%), similar levels of nonresponse bias, and lower costs compared to the single-mode design. Mentioning the telephone follow-ups had no effect on participation in the web starting mode or the full mixed-mode design. Implications of these findings for survey practice are discussed.