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The 6 pillars of employee retention

A strategic investment in times of skilled-labour shortages

Published: February 21, 2024
Last updated: 21. October 2026

In times of skilled-labour shortages, employee retention is crucial for companies. The competition for qualified workers is more intense than ever, and winning talented employees is only the first step. To keep this talent in the long term, companies must take targeted measures for employee retention. 

The six pillars of employee retention play a central role here:

1. Work environment and organisation

A pleasant work environment and a well-organised work structure contribute significantly to employee satisfaction. Clear communication, transparent hierarchies and modern work tools are key components. A flexible working-time model and the option to work from home also foster work-life balance and increase motivation.

Examples of measures in practice:

  • Introducing flexible working-time models
  • The option of home office or telework
  • Company parties
2. Health, sport and leisure

Promoting employee health increases not only wellbeing but also performance. Through fitness offerings, health checks and stress-prevention measures, companies can actively contribute to their employees' physical and mental health and thereby increase motivation.

Examples of measures in practice:

  • Workplace health management
  • Company sport or subsidies for sports facilities
  • Nutrition counselling
3. People development

Employees value companies that invest in their professional development. Through targeted training, further-education offerings and clear career prospects, employees can develop their skills and bond with the company long-term, which additionally boosts motivation.

Examples of measures in practice:

  • Implementing a mentoring system
  • offering training and further education or work-study programmes
  • holding regular feedback and career conversations with future prospects

4. Employer marketing and employer branding

A positive employer brand is crucial for attracting and keeping talent. Authentic employer branding that emphasises the company's values creates trust and identification among employees, which sustainably increases motivation.

Examples of measures in practice:

  • Active presence on social-media platforms
  • being represented at career events and fairs
  • using employer review platforms
5. Company culture and communication

An open communication culture and a positive company culture strengthen the sense of belonging. Regular team meetings, clear communication channels and an emphasis on shared values foster a positive working atmosphere and thereby increase employees' motivation. 

Examples of measures in practice:

  • Precisely formulated company values and leadership principles
  • Introducing regular feedback conversations
  • Team-building measures
6. Perks and benefits

Additional incentives in the form of perks and benefits increase an employer's attractiveness. These include, for example, flexible working-time models, company pension schemes or employee discounts, which strengthen employees' motivation.

Examples of measures in practice:

  • Introducing employee benefits such as vouchers
  • Childcare subsidies
  • Travel-cost subsidies

Overall, these six pillars show that employee retention isn't only an investment in employee satisfaction and health, but also represents a clear competitive advantage in times of skilled-labour shortages. Companies that specifically take these aspects into account will not only be more successful in competing for talent and able to keep existing employees' motivation high, but will also retain them in the long term.

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