The Connection Between Employee Satisfaction and Employee Retention

Bachelor Thesis from the year 2013 in the subject Leadership and Human Resources - Miscellaneous, grade: 1,0, University of Applied Sciences Kempten, course: Personalmanagement, language: English, abstract: Research results of the Institute 'Work and Qualification' of the University of Duisburg Essen from 2011 came to the conclusion that employee satisfaction in Germany is continuously declining in the long run. We are also in fifth last place in a European comparison. This finding could become a serious problem in German companies. After all, which entrepreneur today is not familiar with the emerging problem of the 'war for talents'? Shouldn't one assume that companies do the best they can to ensure that their employees are satisfied and enjoy working for their company? Aren't these companies afraid of losing their top employees to the competition? 'Only satisfied employees are good employees.' This statement is often heard, but is it sufficiently implemented? If you look at the study results of the University of Duisburg-Essen, you have to doubt it. Employee satisfaction has not increased but decreased in the last few years and this should lead some companies to rethink - at least one would think so. Employee satisfaction is becoming an increasingly important topic - not only for the companies themselves, but also for the employees. When employees notice how much is done for their satisfaction and well-being in other companies, they start to think, which in the worst case could lead to their quitting their current jobs. That is why, in this context, employee retention is an issue that companies can no longer suppress. It is becoming increasingly important for companies to retain their 'high professionals' who have a broad range of knowledge and skills in order to keep this knowledge within the company. The current Gallup study on the commitment of German employees came to a shocking conclusion in this regard: in 2012, only 15% of the employees surveyed in Germany had a high level of employee commitment. 61% felt only a low level of emotional commitment to their company and the remaining 24% had no emotional commitment at all. More and more companies are therefore implementing measures to increase job satisfaction and thus increase the loyalty of their employees.