Experts with university degrees in computer science, electrical engineering, construction planning and supervision were particularly sought after. Horst-Dietrich Kraus, Head of Marketing and Communications at Pilz, confirms this experience: "We are particularly looking for technically qualified personnel such as IT specialists or software developers." Like other companies, the Stuttgart-based automation expert has to make compromises when it comes to qualifications; however, the personality and values that candidates bring to the table are more important anyway.

This is why the company is increasingly looking at the question: what do we need to do to retain the current 2,500 employees? "It's a mix of different factors," says Kraus, who has been with the company for 29 years. It's not just the salary, but also the flexibility in terms of time and the values practiced, such as appreciation and helpfulness. "High salaries don't retain employees in the long term," summarizes Kraus, "a company really has to act in a binding manner. For example, offer the spirit of a family business with proximity to the workforce, flat hierarchies and open doors."

Time flexibility is becoming increasingly important for many employees. Especially for employees with children, family, care and job are only compatible with great effort. At Pilz, employees can therefore save up time thanks to the flexible working time model or go into the red if necessary. Home office and mobile working are possible for up to 40 percent of working hours. "The balance between operational needs and personal time requirements must be agreed within the team, it can't be rigidly regulated," emphasizes Kraus.

A good working atmosphere is very important

Dirk Hahn, CEO of Hays: "Leadership cannot be done on the side, but is the core of a manager's work. High emotional and communication skills are crucial for leadership roles, not technical skills."

© Hays

This puts the company right in line with the trend, as the HR Report 2023 by the Mannheim-based HR service provider Hays shows. Among the 1,000 or so respondents, a good working atmosphere (84%) is considered the most important instrument for employee retention, followed by competitive pay (70%) and flexible working hours (58%). While there is a need to catch up in the first two aspects, companies from the DACH region consider themselves to be at the cutting edge when it comes to flexibility. Dirk Hahn, CEO of Hays, comments: "It came as no surprise to us that remuneration in line with the market and performance, as well as the elusive working atmosphere, are seen as the two most important instruments for retaining employees." This was already the case eleven years ago, when the HR report had already addressed the topic. The compatibility of work and family is now also at the top of the list, having been a distant second in 2012. "This shows the great need of the younger generations for a work-life balance," says Hahn, adding that it is also proof of how much the world of work has changed in recent years.

Emotional attachment is crucial

"Younger employees in particular need a lot of affirmation and praise," says Verena Remppis, HR and Administration Director at Yamaichi Electronics Germany.

© Yamaichi Electronics

Emotional attachment to the company also plays an important role in whether employees stay or change employers. In this respect, both the corporate culture and the behavior of managers, who ensure the right interaction with each other in their teams, are decisive. Above all, employees want appreciation (73%), fair treatment (61%) and sufficient time (54%). "This presupposes that managers are given time for their leadership tasks," says Hahn. A sticking point in practice, as too much operational work still rests on the shoulders of line managers. Hays boss Hahn explains: "Leadership cannot be done on the side, but is the core of a manager's work. High emotional and communication skills are crucial for leadership roles, not technical skills."