Employee retention in times of skilled labor shortage: It's time to take action!

Emotionally engaged employees are on average more satisfied, motivated, and productive. However, despite the currently uncertain conditions, the willingness to change jobs in Germany is higher than ever: What can be done? There are many aspects that promote engagement and loyalty in companies. And just as diverse as we humans are, so are the priorities. In our book on personnel management (Unger, Sann, and Martin, 2022), we have evaluated many studies on this topic and come to the following conclusions: 1.) Security - Income - Leadership A secure job, good pay (especially important to receive fair compensation - i.e., compared to colleagues in the company performing similar tasks as well as compared to individuals outside the company with similar roles), and a high-quality relationship with the supervisor (we also found significant differences between self-perception and external perception of leaders and their employees). 2. My Team and Good Perspectives In addition, a good team (especially the feeling of psychological safety seems to be extremely important here), sufficient development opportunities, and suitable working conditions (including meaning, tools, work-life balance, flexible work arrangements, and an appropriate "job fit"). 3.) Suitable, Motivating Tasks Through "job fit," i.e., performing tasks that align well with one's competencies, according to a StepStone study, 64% of employees whose skills match the requirements of their job are excited about their work (compared to 8% where the match is not as good). 4.) Dialogical Communication Crucial in all of this is the implementation of a dialogical communication culture in the company, where there is a genuine interest in the other person's opinion and in real exchange. The necessary openness of employees depends (in addition to past experiences in the company) primarily on the feeling of psychological safety mentioned earlier. 5.) Psychological Safety What is special about psychological safety? Psychological safety plays a crucial role in the satisfaction and loyalty of employees to the organization. It also leads to more innovations, higher productivity, lower absenteeism, fewer accidents at work, higher customer loyalty, and overall better communication (information sharing, conflict resolution, dialogues). It is described as the feeling of being able to show and use oneself (e.g., by asking questions or seeking feedback, reporting a mistake, and suggesting a new idea) without fearing negative consequences for self-image, status, or career. This does not mean a "comfortable/cozy" environment where people are necessarily close friends or a kind of "wellness leadership," nor does it mean an absence of pressure or problems. Rather, psychological safety describes a climate that allows for fear-free and open expression, without immediately fearing a storm of outrage or even reprisals. Instead, the focus is on a productive discussion that allows for early prevention of problems and the achievement of common goals, as people focus less on self-protection, as admitting mistakes (and doing so openly) is allowed or even encouraged, and mutual unconditional (value) appreciation exists. You can introduce the concept of psychological safety, for example, with an anonymous survey. What do your employees say about the following points? • If I make a mistake in the team, I will not be blamed for it. • Team members are capable of openly addressing problems and difficult conflicts. • People in this team never reject others because they are in some way different. • In this team, it is safe to take a risk (social risks are meant, such as admitting uncertainties, openly expressing ideas/criticism, etc.). • It is easy to ask other team members for help. • No one in this team would consciously undermine my performance or efforts. • When working with this team, I realize that my unique skills and talents are needed and appreciated.