Project management

Retention management: 3-phase plan for employee retention

Do you have a high employee turnover rate and want to change this? Retention management and a 3-phase plan support you in retaining employees.
Retention management - how to retain employees

In the context of the skills shortage, it is essential to take effective measures to retain employees in the long term. The loss of qualified employees is not only costly, but can also have negative long-term consequences - including a decline in competitiveness and difficulties in recruiting staff. In this context, retention management plays a crucial role.

Definition: What does retention management mean?

Retention management refers to a wide range of measures planned and implemented by companies in order to achieve long-term employee retention. Keyword: Employer branding - If your employees identify with your brand as an employer, represent the values of your company and feel comfortable, you are laying the foundations for emotional employee loyalty. It is of central importance that the strategies developed for employee retention are geared towards a sustainable period of time. This makes retention management a long-term solution within the company.

Whether for the entire workforce, several groups of employees or individual workers - the strategies can be applied at all levels in your company.

One term - different definitions

The term "retention" is derived from the Latin word "retinere" which means "to hold back" or "to retain". In the corporate world, the term is used in a variety of ways, as it can be combined flexibly and thus gives different measures their own meaning.

Retention - one term, several definitions
Different meanings of retention.

This is why you should rely on retention management

The world of work is constantly changing, particularly as a result of social, demographic and technical changes. This requires new approaches in management development and workplace design. The competition for talent is constantly intensifying. Companies that do not take effective measures to retain employees run the risk of losing their outstanding talent.

Qualified specialistsToday, employees who are also key players in your company are no longer just looking for an appropriately paid position. Aspects such as satisfaction, self-realisation and Work-life balance are becoming increasingly important in the digital age. Well thought-out retention management is essential in order to recognise the increasingly demanding needs of your employees at an early stage and fulfil them optimally.

Measures & examples for employee retention

Employee retention can be achieved through various measures that take different forms depending on the size of the company, industry and strategic objective. However, it is generally advisable to focus on non-monetary measures in addition to financial incentives such as salary or a company car.

Regardless of the form, there is only a chance of success if certain conditions are met. These include an employee-orientated corporate culture and a transparent personnel policy, agile organisational structures as well as recognition and appreciation in the workplace.

A pleasant working atmosphere with short decision-making processes and a strong feedback culture forms the foundation for every successful retention management programme.

Examples of employee retention
Examples of successful employee retention measures.

Retention Management - Strategic 3-phase plan

In the area of retention management, you have a wide range of measures at your disposal that you can strategically implement in a carefully developed 3-phase plan.

Phase 1: Analyse

The first phase of the plan focuses on a thorough analysis. It is best to start with an as-is analysis that takes a detailed look at both your company (situation) and the company environment (context).

Start by reviewing the various risk classes within your company. Is there currently an increased risk of redundancies? Are you facing a staff shortage because vacancies cannot be filled? Identify possible quality risks, such as insufficient qualifications among your employees. These questions are crucial and should be answered to ensure strong employee retention. Together with your managers or project managers, identify the employees or project teams that are particularly important for the long-term success of your company.

The quality of any analysis depends on the facts and figures on which it is based. The more information and key figures you can use for your analysis, the more resilient your retention management will be. A Reliable softwarewhich records all project data, times and schedules, help to provide the data precisely and in relevant contexts.

All relevant project data at a glance.

Soft facts also play a significant role. A transparent working atmosphere can be a real retention factor for your employees. Make use of Instruments such as employee surveystake a look at online review portals and create a comprehensive picture of your company.

The same applies to context analysis. Your company does not operate in a vacuum. Carry out market studies or surveys to create a comprehensive competitive analysis. How does your company position itself? How is it perceived by potential candidates?

Phase 2: Realisation

The thorough analysis is followed by the decisive implementation phase. Draw up an action plan with clear, measurable objectives. It can be helpful to further refine these objectives. After implementing the measures, you should promptly collect key figures to determine whether the measures are achieving the desired effects.

Examples of your goals could be

  • Reduction of the fluctuation rate by 5 per cent
  • Improvement of ratings on employer portals by 0.5 stars
  • Increase in employee satisfaction in the employee survey by one point

When it comes to implementation, it is crucial that the measures are customised and precisely tailored. The watering can principle hardly works when it comes to employee retention. After all, what makes working from home important for one employee may be high-quality technical equipment in the office for another, while yet another prefers more free time instead of a higher salary. Adapt the measures to the needs of the employees or project teams to be retained and avoid a generalised approach. Ask your employees what they specifically need so that you can respond individually. Because the rule here is: questions are better than assumptions!

Phase 3: Evaluate

The final and decisive phase is the assessment and evaluation phase. Have the measures you have introduced achieved the desired success? If so, it is important to keep at it and not just be satisfied with an initial reduction in the retention rate. If not, rapid countermeasures and corrections are required. Effective retention management is always a balanced triad of analysis, implementation and evaluation: a regular cycle that should occasionally be revitalised with new impetus.

It is clear that employee retention is one of the central tasks of a company. If you with the help of intelligent software If you free up time to concentrate on retention management, everyone involved benefits: your employees, your company and ultimately you as the person responsible.

Tanja Hartmann CEP

Tanja Hartmann

Content Marketing Manager at ZEP

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