What is the best employee loyalty software
Employee retention: the 3 most important measures
Attracting talent is a challenge for companies - keeping them afterwards is the great art: What must organizations consider in order to prevent employee fluctuation? In this article, we will introduce you to three measures for employee retention and, using best practice examples, show you the measures companies like Google and Zalando use to keep their employees in the company.
Those who manage to constantly motivate employees will keep them long-term. These 31 tips will help you.
The choice of jobs for talent is greater than ever today. The demand for skilled workers is higher than the supply, which puts highly qualified workers in a privileged position: they can virtually choose their employer. What does this mean for companies? You have to invest money and effort in retaining your top performers in order to prevent them from switching to a more attractive employer or to nip the thought of it in the bud.
What is employee retention?
Employee loyalty is an instrument in the human resources area to bind employees to the company and thus keep them in the long term. It contains various measures that companies implement in a retention program. In this way, companies show their employees how much they care about the well-being of their employees and show appreciation. So it's no wonder that the topic of “employee retention” is always at the top of the to-do list of HR departments.
The better the selection, the easier the bond
Employee retention does not start on the first day of work. The foundation stone for a long-lasting relationship between employees and the company is laid as early as the selection process. HR managers have the responsible task of identifying those candidates whose profile matches that of the company as optimally as possible.
An applicant who appears to be highly talented, but has expectations that can hardly be met, will be difficult to keep in the company. After the decision has been made about whether a candidate can help the company with his or her abilities, it must inevitably also be anticipated whether the candidate can find personal fulfillment and satisfaction in the company.
Tip: Compare the expectations of the candidate with the employer value proposition of your company. In this way, you can already assess in the application process whether the candidate can be retained in the company in the long term.
Employee satisfaction: the basis of every bond
Sociologists Timothy Butler and James Waldrop have identified three essential factors that determine employee satisfaction: skills, values and interests.
An employee must have the right skills and abilities for their job in order to achieve a feeling of satisfaction. A feeling of incompetence quickly leads to a tendency to emigrate. The values and the reward system on the part of the company must match the ideas of the employee and be perceived as fair by the employee. Monetary incentives, the creation of a good atmosphere or recognition and a career are three fundamentally different reward models - there is a high potential for conflict here.
In addition, the daily tasks should have the greatest possible overlap with personal interests, as these are firmly anchored in the personality and determine the natural “fun factor” of the work. Surveys have shown that the salary component is surprisingly low in importance when changing companies. Soft factors, which can be summarized under the collective term “satisfaction”, gain dramatically in importance.
If the above-mentioned factors are met, there is a solid bond base that can be linked with specific measures.
Specific measures for general employee retention
Basically, every kind of courtesy by the employer can be interpreted as an employee loyalty measure. This begins with flexible working models such as home office, part-time work, or the possibility of taking a sabbatical year. Many companies meanwhile also offer basic meals consisting of water, fruit and coffee in the office, here too employers can score points with employees thanks to the large selection and quality of the products (especially coffee). There are also offers such as team events, company sports, favorable special conditions in the fitness studio, travel allowances and other small financial incentives.
The more individual the measures are tailored to the employees, the stronger the feeling of appreciation in all areas of the company. The best and best-known example of a wide range of retention measures is Google. The internet giant offers its employees working conditions that resemble an amusement park - those who leave this company also have to leave behind the working atmosphere they have cherished, which makes it all the more difficult.
Suggestions for further employee loyalty measures:
Development / funding:
- fixed training budget for each employee
- Training programs
- regular feedback from executives
- Take on project / team responsibility
- Flexible working hours
- Part time
- Home office
- Childcare support
- Christmas / vacation pay
- Travel allowance as part of the tax-free benefit in kind
- Transparency, communication, respect, appreciation
- Team events
- Modern office fully equipped to work more efficiently
- Employee surveys
- Cooperative approach
- Constructive feedback culture
- Free food like fruit, coffee or cereal
- Allowance for lunch, e.g. B. with Sodexos
Measure 1: Promote feedback culture - important for both sides
An often underestimated measure for employee loyalty is a lively feedback culture: If a high performer has already decided to leave without being noticed, it is usually too late for the company to turn things around. The example of Zalando shows that measures such as employee surveys and exit interviews should play an essential role in the retention strategy.
If you regularly ask employees for their opinion, you can counter emerging problems at an early stage and show an appreciative interest in the well-being of the employees, which has a positive effect on loyalty. Interviews with people who are willing to emigrate are also valuable - they provide information about grievances in the company and attracting strategies from competing companies.
Here you will find an exemplary set of questions for the employee survey that you can edit and use for survey tools.
Tip: A casual conversation over lunch seems more informal than an official feedback appointment. Ask your employees about their current situation: Are they satisfied with their tasks and the working atmosphere? Do you want a change? What tasks can you imagine in the future and in which direction do you want to develop? Encourage your managers to seek casual conversations with employees.
Measure 2: Selective employee loyalty instead of uniformity
Employee retention measures cost money. A number of broad, basic measures that express appreciation make sense in any case, but companies should also think about which employees are really worth investing more in. Long-standing top performers, young talents or important managers are - from an economic point of view - “worth more” than a moderately qualified, rather unmotivated employee.
The example of MTU Aero Engines GmbH shows how selective employee retention can look. There the profile of the “bottleneck employee” was defined, linked to positions and employee types that could be lacking in the future. Since then, suitable young professionals have been promoted with individually tailored programs and thus retained over the long term.
Measure 3: Funding with foresight
The example shows that companies that want to specifically retain certain employees have to ask themselves various questions. For example:
- Which employees contribute most to the company's success?
- Which employees will play an important role in the future?
- In which areas of the company are there bottlenecks?
Only retaining those who are high performers in the status quo is not enough. Employee retention also falls within the area of strategic corporate development and therefore requires foresight.
Employee loyalty promotes motivation
Anyone who equates employee retention with preventing departures is overlooking an important component of this concept. Employees who feel bound to their company in a positive sense almost always show a higher level of motivation than those who are willing to change. Employee loyalty is therefore to be seen at the same time as the basis of employee motivation. It not only prevents staff wear and tear, but also promotes growth and success that would not be possible without these measures.
Employee loyalty: good for the employer brand
Investing in employee retention pays off on several levels. You keep and motivate valuable employees and at the same time contribute to the employer brand. Retention management is therefore an essential part of the employer branding strategy. Satisfied employees who feel they are an integral part of the company and are rooted in the company network are much more likely to act as positive multipliers and automatically recruit new specialists in their own network. In this way, they become a valuable long-term resource and at the same time a high-profile testimonial for your company.
How do the others do it?
Fonepit AG: At the Berlin Android community “AndroidPit”, lunches, parties and sports activities are part of the weekly routine. In addition, incentives in the form of vouchers for lunch or Mallorca vacations are created for employees who achieve their goals or even overperform.
Travelbird: The online broker of travel deals has more than tripled in a short period of time. Development and advancement opportunities for employees are therefore big issues! In addition to having their own restaurant and regular massages, employees are trained in the in-house academy - regardless of whether it is leadership, sales, technology or creation. Goal: Every employee should get the optimal function in the company.
Personio: At Personio, not only is growth fast, but also the commute. Every employee gets an environmentally friendly UNO scooter to get started - or alternatively a subsidy for public transport. And so that the growth curve continues upwards in the future, each employee has a development budget of € 1,500 per year.
How you can bind your employees through structured performance management:
If you want to make retention a part of your everyday life, you need a plan - a plan that will satisfy your employees and managers alike. This is where performance management comes into play. It ensures that the performance appraisal is carried out correctly in your company. What is the best way to go about performance management? What is your role as an HR manager? How can you satisfy the needs of your employees? In our 5-point plan, you will learn step by step how you can promote and motivate your employees and thus retain them in your company.
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