How do I measure employee retention

Employee loyalty: 6 pillars + the best tools

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Good staff is hard to find. This makes employee loyalty all the more important in companies. Bright minds should be kept in their own ranks and know-how should be tied to the company. A promotion is the ace up your sleeve. But there are numerous measures that employers can use to position themselves well in the war for talent. We explain why employee retention is so important and which pillars of employee retention are the focus ...

➠ Content: This is what awaits you

➠ Content: This is what awaits you

What is employee retention?

Employee retention is a task in human resources. It includes all measures with which employees are to be bound to the company in the medium to long term. The focus is particularly on high performers, key experts and qualified specialists. This selective employee retention ensures that the most important staff are retained.

Bundled positive incentives and instruments for employee loyalty are sometimes synonymous with retention programs or retention management.

Benefits of employee retention

Employee retention pays off and is a major success factor for companies. With good retention measures you can ...

The 6 pillars of employee loyalty

However, only a few companies benefit from the advantages. The Gallup Engagement Index regularly shows that only a small proportion of employees really feel attached to a company. The rest of them work according to regulations or have long since resigned internally.

The 6 pillars of employee retention are intended to prevent this scenario. We will introduce you to the individual pillars of employee loyalty and explain which measures and instruments are associated with them.

1. Work environment & organization

Employees have to feel comfortable at work and at their workplace. Satisfied employees are more motivated, more productive and seldom sick. Employers are responsible for creating a comfortable working environment. This includes a positive atmosphere and all the prerequisites for good and structured work.

Employee retention measures:

2. Development & Promotion

Employee retention increases when employees have the opportunity to grow, learn and develop in a desired direction within the company. Employers should develop their own staff and encourage them to develop. Investing in your own employees has a positive effect on know-how and loyalty.

Employee retention measures:

3. Health & Leisure

The health of employees is a great asset. From an operational point of view, a healthy workforce has fewer days absent due to illness. At the same time, healthy employees are generally more satisfied with the job. Nobody wants to risk their health for the job. Companies that are concerned about the health of their employees are also doing something to improve employee loyalty.

Employee retention measures:

4. Employer Branding & Marketing

Employer branding is an employer's perception. Companies have to position themselves as attractive employers and develop a reputation for themselves. In this way, existing employees are retained and new young professionals and top talents are attracted. Your own employees are the most important advocates.

Employee retention measures:

  • Career events
  • Social media channels
  • Brand ambassador
  • Employee recruitment programs
  • Online application portals for employers
  • job advertisements
  • Welcome packs
  • Career portal on the homepage

5. Culture & communication

The company should represent and communicate clear values. This is how employees can identify with it. A common mission statement creates trust and strengthens employee loyalty. It is important that the corporate culture does not just exist on paper, but is reflected in actions and decisions.

Employee retention measures:

  • Clear corporate culture
  • Transparent communication of goals and values
  • Intranet for communication
  • Sustainable work
  • Work-life balance
  • Employee magazine
  • Canon of values
  • Social responsibility

6. Advantages & Benefits

Of course, financial benefits and discounts also have a positive effect on employee loyalty. A pay rise can increase motivation, but it is often measures that go beyond the normal monthly pay that employees particularly value in companies. If there is added value here compared to other employers, the employer branding mentioned above also benefits.

Employee retention measures:

Selection: Which instruments to use for employee loyalty?

All of the above means and measures strengthen employee loyalty. But it is hardly possible to implement all of them. In addition, not every instrument is equally suitable for every employee. One possibility for childcare is excellent for working parents in the workforce - childless, on the other hand, have no use at all. Further examples:

  • A young father is more happy about flexible working hours than about time-consuming weekend seminars.
  • A manager may not be interested in a sabbatical, and even more so in financial participation models.
  • A clerk who commutes every day cannot use a Playstation corner, but gasoline vouchers, company cars and / or company parking spaces definitely need.

In order to select the right instruments for employee retention, companies should answer a few questions in advance:

  • Does the measure suit the workforce?
    A Nordic walking course for a startup with an average age of 25 - that doesn't make much sense.
  • Are you only supposed to cover up weaknesses?
    Anyone who invites their employees to a pompous company outing, but continues to pay poor salaries at the same time, may cause more harm than good.
  • Is it believable?
    A corporation that has written corporate social responsibility in large letters on the flag cannot allow its executives to use gas-guzzling SUVs as company cars.
  • How high is the entry barrier?
    Order the table football and darts board online and have fun with the staff. Or have a large fruit basket delivered every week. It’s easy. Setting up a good canteen - engaging employees, choosing furnishings, ensuring quality - is much more complex.
  • What do the employees want?
    Perhaps the most important aspect at the end: the wishes of the employees. The best intentions are useless if they are not met with love. An employee survey can help.

Selective employee retention: who to keep?

Unfortunately, the truth also includes: Not every employee is worth - viewed quite soberly - to be ensnared and held at any price. To put it even harder: an interchangeable force with commonplace abilities will not cry a tear in the executive office when she sets off for new shores. It's tough, but bitter professional reality.

On the other hand, if a service provider breaks away, the company loses valuable expertise, which on top of that migrates to the competition. At the same time, it takes a huge amount of time and money to find a suitable successor. Better not to have let the relevant specialist go in the first place. But who is the focus of selective employee retention?

  • Service providers: Top performers who are fundamentally important for the success of the company.
  • Talents: Young talent with (great) potential
  • Specialists: Employees with skills and knowledge that are only available in small numbers on the market.

Procedure for selective employee retention

But how do you identify a top performer? This requires careful attention to your own staff. Managers have to get a comprehensive picture, evaluate work performance and assess potential. These questions can help:

  • Which employees do an excellent job?
  • Which employees can be expected to perform outstandingly in the future?
  • Which employees are most important to the company's success?
  • Which departments, functions and positions are decisive for the future of the company?
  • Where is the greatest added value currently taking place - and where in the future?
  • Which employees have the potential to take on tasks with greater responsibility or added value?

Disadvantages of selective employee retention

After the most important people in the team have been filtered out, they can be targeted with retention measures. In practice, however, it is not that simple. Several disadvantages and possible problems stand in the way of the procedure:

  • Unfair treatment
    If individual employees receive special treatment, others feel disadvantaged. That promotes resentment instead of motivation. In the worst case, there will be greater fluctuation among employees.
  • Unused potential
    If the company maintains very good employee loyalty, the performance of employees can increase. A low performer may become a high performer. If employee loyalty focuses only on employees who are already strong, existing potential remains unused.
  • Inaccurate identification
    Selective employee retention only works if the right employees are actually identified. It is not always the case. So it happens that employees are courted who are conspicuous - the quiet top performers in the background are overlooked.

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[Photo credit: Karrierebibel.de]