Employee retention: advantages, strategies & success factors

At a time when the war for talent is raging in many industries and employee turnover is on the rise, employee retention is becoming a critical factor in a company's success. Retaining talent and engaging them for the long term is critical to boosting a company's performance and success. This article is about employee retention, why it is becoming increasingly important and how companies can promote it.

What is employee retention?

Employee retention is a term that describes the connection and commitment of employees to their company. It is about ensuring that employees not only work in a company, but also identify with it emotionally. This leads to higher satisfaction, productivity and long-term loyalty. Employee retention measures take place within the framework of retention management.

What is part of employee retention?

Employee retention encompasses various aspects:

  • Job satisfaction: Satisfied employees are more likely to stay with the company and give their best.
  • Career development: The opportunity for personal and professional development is an important factor.
  • Recognition and appreciation: Employees want to feel appreciated and recognised for their work.
  • Work culture: A positive corporate culture where values and visions are shared contributes to retention.
  • Work-life balance: The ability to balance work and private life is crucial for many employees.

Where does employee retention begin?

Employee retention begins even before a new employee joins the company. Already in the recruiting process, HR managers have to make sure that applicants want to come to the company and that they also fit in with the company in the long term.

When the employee starts work, the efforts for strong employee retention continue. Effective induction and integration into the company are crucial. Last but not least, first impressions can have a lasting impact on retention.

The advantages of strong employee retention

Strong staff retention has several advantages for companies:

  • Companies that are better able to retain their employees are more attractive on the labour market.
  • Employees work more productively and are more efficient.
  • The fluctuation of employees in the company is reduced.
  • Less fluctuation means less effort for recruiting and thus an effective saving of costs and human resources.
  • Further resource savings through less onboarding and induction.
  • Satisfied employees are less likely to call in sick.
  • Better bonding strengthens team cohesion and the overall working atmosphere improves.

How do you retain employees in a company?
Retaining employees requires a holistic strategy. Companies should respond to the needs and expectations of their employees, provide clear development paths and promote an open and supportive culture. Regular employee satisfaction reviews and employee feedback are also important tools.

What are the options for retaining employees?

There are numerous measures to promote employee retention - an overview:

  • Clear communication: Open and transparent communication is crucial. Employees should always feel heard and informed.
  • Development opportunities: The opportunity for further education and professional development is motivating.
  • Reward and recognition: Recognising performance and commitment through rewards and praise is important.
  • Flexible working conditions: Flexible working hours and remote working options contribute to the work-life balance.
  • Workplace health promotion: programmes to promote the health and well-being of employees.
  • Flexible and sustainable mobility offers: Offers such as a company bike or a mobility budget support employees in their daily work, relieve them financially and promote health.
  • Team building and team events: Shared time and activities foster the relationship between colleagues.

What promotes employee retention?

Employee retention is fostered by employees' trust in the company and its managers. A positive work environment and a culture of respectful interaction are also key factors. The opportunity for professional development and the perception of one's work as meaningful also contribute to retention.

How companies can motivate employees without a salary increase

Offer more flexibility

Flexible working models allow employees to work at the times when they are most productive and to work where it suits them best. By introducing hybrid working, home office or remote working, companies give their employees the confidence they want from a modern employer. Such employees are more likely to feel respected and valued. This improves morale and increases the success of the company - and has the side effect that employees are sick less often, which leads to fewer days of absence and means fewer unnecessary costs for companies.

Modern and attractive benefits

To make employees feel valued and more satisfied with their jobs, companies can offer attractive corporate benefits that support employees in their everyday lives, take some of the pressure off them or make them happy. Employee benefit offers are diverse and cover different areas such as health, childcare, company pension schemes or personal mobility. It is important for companies to ensure that a corporate benefit appeals equally to all employees.

Why is employee retention becoming more and more important?

Employee retention is critical in an increasingly competitive business world. Recruiting new talent is often more expensive and time-consuming than retaining existing staff. Existing employees know the internal processes, are already familiar with the team and do not need to be trained first.

Furthermore, committed employees have a positive influence on customer satisfaction and the company's success. Satisfied employees are more productive.

In addition, it is becoming increasingly difficult for companies to find well-qualified workers on the labour market. Companies need to increase their efforts to attract new employees with modern employee benefits so that they can stand out from the competition.

For companies, the retention of their employees is a highly topical issue that will become even more important in the future in view of the shortage of skilled workers.

Employee satisfaction

Employee satisfaction is a key aspect of employee retention. It is achieved by meeting the expectations and needs of employees in relation to their workplace, their team and the company culture.

Employee retention: Good for the employer brand

High employee loyalty has a positive effect on the employer brand. Companies that take care of their employees are perceived as attractive employers. This makes it easier to attract new talent and promotes the company's image.

Employer Branding

Employer branding is an important part of employee retention. It involves developing an attractive employer brand that attracts talent and retains existing employees. A strong employer brand shows that the company takes the needs and expectations of its employees seriously.

Conclusion

Employee retention is an essential factor for the long-term success of a company. It requires a continuous investment in employee satisfaction, development and appreciation. Companies that focus on employee retention can build an engaged workforce that drives business success and establishes a positive employer brand.

Stefan Wendering
Stefan is a freelance writer and editor at NAVIT. Previously, he worked for startups and in the mobility cosmos. He is an expert in urban and sustainable mobility, employee benefits and new work. Besides blog content, he also creates marketing materials, taglines and content for websites and case studies.