For many HR managers, employee retention is one of their key areas of activity. But how can qualified employees be retained in the company in the long term?

For many HR managers, employee retention is one of their key areas of activity. But how can qualified employees be retained in the company in the long term? We show which forms of employee retention are common and which measures lead to success today.
According to various experts, the Corona pandemic has changed the working world and the mindset of many employees - and this has also led to an increase in the number of layoffs. The reasons include:
If these predictions come true, the issue of employee retention will become a particularly high priority for many companies and a key competitive factor.
Simply put, employee retention is about retaining employees using appropriate tools.
This area of responsibility is assigned to human resources and is also known as retention management. Retention means “keeping” or “binding”.
The focus is on internal employer attractiveness, which is achieved through internal Employer
Branding can be increased. Employees should feel connected to the company, enjoy coming to work and feel so comfortable that they do not even consider changing jobs.
Why should you retain employees long-term? Successful retention management offers numerous advantages:
Not only the company benefits from employee retention, but also the employees. Employees spend a lot of time at work, and if they feel well looked after and part of the company, this has a positive impact that extends into their private lives.
There are different ways to retain employees. The main distinction is between an emotional and a rational approach. Both can be successful in their own way, and a combination of the two models is also possible.
Many employees long for meaningful work. Purpose-driven recruiting By designing work in such a way that it is perceived as motivating and meaningful, companies can retain the appropriate specialists. In addition, as part of emotional employee loyalty, attention should be paid during the recruiting process to ensuring that the candidate's values and goals match those of the organization.
The rational approach is about retaining employees through material incentives. For example, through a salary increase or Corporate Benefits such as home office or company car. Emotional retention measures are considered to be more sustainable and economical than rational ones. For example, someone who only joins a company because of a high salary will leave for the same reason as soon as a competitor offers more money. However, a unique corporate culture with which the employee identifies cannot usually be easily outbid by a competitor.
The problem with both options: Individual emotional or rational measures to promote employee loyalty always target only one group or individual within the workforce.
By offering a home office option, you can only appeal to those who want it, while others would like to come to the office and would like to see improvements there. Still others want emotional bonding measures - for some, greater appreciation from management is important, others want to have more of a say in shaping the company's vision, etc.
The psychological connection of employees to a company, also known as commitment, can be strengthened through emotional bonding measures as described. However, in addition to this, there are affective commitment, in which employees want to work for an organization because of their identification with its goals and values, according to John P. Meyer and Natalie Jean Allen, there are two other forms of commitment:
At first glance, these two forms of commitment do not require any effort on the part of retention management. The employees stay in the company of their own accord. However, appearances are deceptive. Employees who remain "loyal" to a company only out of fear of unpleasant consequences or just out of blind loyalty are generally not very committed and sit out their working hours, for example, purely out of a sense of duty.
The aim of employee retention measures should also be to increase the motivation of these employees and thereby their commitment.
At a glance – what can you do to retain employees?
Rational employee retention measures:
Emotional employee retention measures:
Of course, the list is only a rough overview – there are many other options that can be used to retain employees in the company.
It is advisable to approach retention management in several phases and to focus on the essential pillars. The following 4 steps provide a good structure.
1) Analysis: First, an analysis of the current situation should be carried out in the company. The aim is to identify the current risk of employees leaving the company. In addition, employees and teams should be identified who are important for the company's long-term success and should therefore be the focus of employee retention measures. A competitive analysis is also required - how does the organization stand in the market?
2) Objective: After the analysis, it is a matter of setting goals. For example, this could involve reducing the turnover rate by a certain percentage or increasing employee satisfaction in feedback surveys by a certain number of points.
3) Implementation: Depending on the objective, suitable measures for employee retention must be selected and applied. As already described, the scattergun approach does not work in retention management, because a certain (rational or emotional) retention measure is important for employee A, while another is important for employee B.
4) Evaluation: Of course, the measures taken must also be evaluated. If they are successful, then you need to keep at it and continually improve the retention rate. If they are not successful, the measures need to be improved or possibly replaced.
Is the turnover rate among your employees high? Are you worried that you will lose important talent in the near future? Our recruiting experts will be happy to advise you on how to counteract these developments with efficient retention management. You will receive tailor-made solutions for the individual starting point in your company.
But employee retention is not only important in times of crisis. Discuss optimization potential with our professionals to improve the company culture, increase employee satisfaction and boost the commitment of your employees.
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(Cover photo source: Roman Samborskyi – Shutterstock.com)