Stable employee retention is a top topic at leadership level today and a decisive factor in business success. For many companies it exerts enormous pressure, given the growing shortage of skilled workers and rising turnover. When employees resign, or have already quietly resigned and only do the bare minimum of their daily workload, it costs the company money. According to the 2023 Netigate study on employee engagement, intentions to resign have increased and one in four people is considering leaving within the current year. How can a company counter this trend and retain its people for the long term?
How modern employee retention can be put into practice
Strategic retention begins the moment the contract is signed and builds on the foundation of a positive corporate culture and convincing company values. The working world has changed a great deal and is marked by constant upheaval. That makes it all the more important for companies to stay authentic while adapting the conditions and measures for retention to changed expectations. Technology has substantially changed many processes and tasks, as have social norms and the demands and needs of employees. A good salary has long since stopped being everything. Attractive pay and additional benefits are of course important, but intangible aspects play an increasingly important role in retention.
One of those intangible factors that determine whether people feel connected to the company or not is the leadership style. Appreciation, recognition, trust and respect are relevant today for many employees looking for a working environment that suits them. The tone from the top has a considerable influence on the working atmosphere, and a positive communication style can strengthen people's bond with the company lastingly. Positive, supportive and empathetic leadership fosters trust and commitment. A leadership position filled with the right person has a strong effect on retention. Involving employees in decision making or change processes and maintaining an open corporate culture also have a positive effect. Mid sized companies have a clear advantage over large corporations here: with clearer, more familial structures, the sense of belonging and a trusting relationship can be strengthened considerably and become an important plus compared with the big players.
Corporate integrity in dynamic times
The important elements of the modern working world, known as new work, should be lived in mid sized companies too. In commercial roles that includes flexible working hours and the option of remote work, as well as the use of modern technologies and tools. Contemporary offers such as hybrid working models allow a better work life balance and are at the same time important instruments for making sure that people identify with the company. In industrial roles this can mean additional benefits such as occupational health management, or the option to swap and arrange shifts flexibly.
Transparent development paths as a driver of motivation
So that the connection with the company is not lost despite hybrid models, it is important that managers and HR work deliberately on strengthening cultural cohesion. Employees who can contribute to decision making, and other participative approaches, actively promote retention. Individual advancement opportunities and development paths give important boosts to motivation and, combined with regular feedback and performance reviews that make individual progress transparent, have a strong binding effect. Professionally implemented competence management makes it possible to tap employees' potential in full. Talent can be developed in a targeted way and the transformation of the working world driven forward efficiently. In this context, functions and positions can be rethought and made accessible on the basis of skills rather than qualifications.
Lasting retention, long term business success
The development and progress of individual employees can be tracked transparently through people analytics. People analytics brings together data from internal and external sources and delivers valuable information and insights, including on retention and intentions to resign. An analysis is worthwhile in order to establish whether there are company related causes for resignations that occur repeatedly, such as leadership style, tasks or the atmosphere in the team. A great deal can be done so that people feel comfortable in the company long term, identify with their work and stay engaged, and the individual measures are subject to dynamic processes. Whether flexible working models, regular feedback processes, recognition programmes, team building measures or an attractive workplace design: which measures are relevant and sensible for strategic retention in a given company, and with what weighting, differs from business to business. With experienced HR experts, THE MAK'ED TEAM develops tailored strategies and concepts for mid sized companies that fit the needs and cultures within the business.
You can find more about employee retention here.
.avif)
