3 min read
The German labour market is tight in 2022. A steadily growing skills shortage, especially in the IT sector, engineering and healthcare, together with high staff turnover caused by the ongoing Covid-19 pandemic, makes it harder for companies to meet their need for qualified employees. A study by the job portal Glassdoor on current labour market trends says that companies need to develop long-term strategies to find new employees in future and, above all, to keep them. How can that be achieved? Put simply: make your workforce happy, with these tips for successful retention management.
Retention management: a definition
The word retention originates from the Latin re-tinēre, which means to hold back, keep or preserve. Coming from the field of sales, the term is understood and used in many ways in an HR context. For example, there is talk of the retention rate, that is, the rate of employee retention. It states the percentage of employees who can be kept on the payroll over a given period. Retention marketing, in turn, refers to marketing measures that try to retain employees with future potential. In retention management, these parameters, instruments and measures are used strategically with the aim of creating a working environment that makes employees satisfied and so binds them to the company.
Retention management: the benefits
Satisfied employees are motivated employees, and motivated employees contribute with full commitment and fresh ideas. Companies with functioning retention management programmes
- not only secure their workforce's willingness to perform.
- They also retain their top performers and specialists,
- achieve lower staff turnover in the process and
- save the HR department recruitment effort and costs.
Retention management: the measures
The basic prerequisite for employee satisfaction is a company climate based on appreciation and a willingness to support people's development. The simplest way to express this is through pay. Only those who pay appropriate wages can credibly convey that they value their employees' time and willingness to perform. In addition, retention management also provides for non-monetary measures aimed at employees' trust, motivation and enjoyment of their work.
Flexible working location and working time models
The restrictions caused by the pandemic over the last two years have shown that flexible working models can indeed be successful. The ability to decide largely for yourself where and when you work is no longer merely appealing for many people, but even a condition for starting a new job or staying in one. Among other things, this ensures that family and career can be reconciled and that working life can be better adapted to employees' individual needs and hobbies. It is important, however, that offers such as working from home do not become compulsory.
More participation
And what about the scope for participation in the company? Many employees want more personal responsibility and more room for decision-making and action. These increase motivation and ensure that previously undiscovered potential is discovered and fully used. Not least, this is a convincing way for company management to communicate that it believes in its employees and trusts them, which is certainly the basis of high employee satisfaction.
Development and training programmes
A company's principles and convictions are already evident in recruitment and onboarding: how do HR and managers treat (potential) new joiners? Do new employees know who their contacts are, where they can get information and exactly how their area of responsibility is defined? Is the team keen to make the start as pleasant as possible for the new colleague? Ideally, a company invests in its employees' development not only at the beginning but supports them throughout their employment. This includes trainee programmes, coaching and professional development. In addition, setting goals and giving regular feedback can boost motivation.
