People Management: Five measures for employee retention

If you want to grow as a company in times of digitalization, you have to pursue an employee-oriented strategy. The focus here is on efficient and active recruiting processes - but also with an inward look. Because, of course, it is important not only to win over the best minds, but also to retain them and bind them to the company in the long term. This is called people management. But according to a study conducted in Germany by the software manufacturer Sage, only 18 percent of HR managers feel that they have already made the transition from HR to People. 86 percent even assume that the transformation to pure people management can take up to ten years.

Changing employee expectations

In this context, employees' expectations of HR teams are also changing. According to the Sage study mentioned above, an astonishing 69 percent of HR executives assume that employees' expectations of HR will change completely within the next three years. This leads to the key question: How does each individual employee feel they are being addressed? Since we are dealing with individuals with personal attitudes and desires, there can be no standard roadmap here. So where are the prerequisites for close employee loyalty and how can these be strategically developed within the company? The following five points are part of a comprehensive strategic plan for employee retention as it might look in the digital age.

1. people analytics

Meaningful decisions are based on tangible data. That's why every action plan begins with regular and comprehensive data collection. People analytics is divided into three main areas. Classic HR systems provide the first, important overview. Various dashboards provide HR decision-makers with information on gender and age distribution or fluctuation in the company. In the second step, these bare figures need to be backed up with statements, wishes and attitudes - using regular and comparable employee surveys. In this way, employees can provide concrete feedback and communicate their (dis)satisfaction in various areas.

In order to derive and implement concrete measures from these surveys, a data scientist from the HR department must subsequently evaluate the data in detail and prepare it transparently. One survey after the other is then carried out at regular intervals - with recurring questions so that the results remain comparable. Finally, the third area, personal interviews, provides the opportunity to obtain individual answers. In this way, the specific situation of the respective employee and his or her role in the company can also be taken into account.

2. the new role of the "people scientist

The same applies to all types of data collection: Only after a comprehensive analysis can conclusions be drawn and HR measures strategically planned. As the demands on the HR workspace increase and tools and systems transform rapidly, a new role is needed: the People Scientist. This is a Data Scientist who focuses on the systematic collection and analysis of employee data. The People Scientist is also responsible for transparent disclosure of the data needed to make truly employee-centric decisions.

3. positive employee experience

The goal is obvious: satisfied employees. After all, they have good reasons to stay with the company and are also demonstrably more productive. The path to this goal is marked by positive employee experiences, for example in the form of smooth processes or concrete benefits from the employer. The Corona crisis in particular has given new weight to the health and general (mental and physical) well-being of employees. Modern technical office equipment is part of this in times of digitalization. In addition, companies score points with good catering through the company cafeteria, internal childcare options, health and sports offerings, recreation rooms or options for mobile and decentralized working - to name just a few possible examples. But which of these measures the company takes should always be derived from the data and from the specific needs of the employees. Moreover, the aim is not to make work "bearable" for employees through external factors, but to make it sustainably positive and efficient in order to exploit the full potential.

4. further training opportunities and promotion prospects

The opportunity for further development and self-development is an incentive for many skilled workers to stay with the company in the long term. Concrete training opportunities and the prospect of promotion within the company play a role in the choice of a suitable employer, especially for the younger generation.

The topic of continuing education has gained importance in Switzerland, especially during the Corona crisis. According to a Survey of the Swiss Association for Continuing Education a large proportion of companies attach great importance to further training in order to counter the effects of the pandemic. However, many SMEs are still cutting back on continuing education: Almost one-third of SMEs with an increased need for continuing education have not changed their continuing education activities or have even reduced them.

5. corporate culture

Last but not least, employee retention is always a question of corporate culture. It is important to build up the necessary trust among employees so that they can and want to contribute their individual opinions and ideas. This paves the way for innovations that ensure the company's success and competitiveness in the long term. Here, too, companies must start from the inside, building the culture and the mission statement from within. Those who know their own values precisely and are also able to communicate them can create an atmosphere in which employees feel integrated. Then, ideally, they are motivated not only extrinsically, but also intrinsically, because the company's goals and values match their own or feed into them.

People Management: "Retaining employees is not a no-brainer."

Simone Seidel, Director People Central Europe at Sage, draws the following conclusion: "No company can rest on attracting qualified staff and then simply assume that they will stay - employees must also want to stay and be motivated. Modern HR departments therefore have as clear a picture of their employees as the marketing department has of its customers. After all, both groups ensure the company's success. In this exciting area of responsibility, it pays to reorganize the HR department - because it can actively and specifically create the conditions for a People Company."

Source: www.sage.com