Well-Being vs. Leaving: How Companies Keep Managers With Personal Incentives

According to a study by strategy&, around 15% of the CEOs around the world changed job in 2016. This merry-go-round of managers proves costly for companies. “Whether costs for head-hunters, damage to your reputation or losing expertise and contacts to the competition: just like in business with customers, the saying that a new client costs five times more than keeping an existing client is also true in HR”, Viktor Gilz, founder of Suite&Co, explains. The company organizes and designs personal living space according to the requirements of the managers and of the company. Co-founder Lisa Mellinghoff states: “When the employer also cares about the private life of the employee, this creates an emotional attachment. This spurs the worker’s motivation and performance and increases loyalty.”

Losing Managers For Social Reasons

Current trends in the job market, such as skills shortages and high labor turnover rates, urge companies and startups alike to use more and more innovative strategies to acquire, motivate and keep first-rate staff. Suite&Co relies on these so-called soft factors. Studies from loyalty research show that 70% of customer losses can be traced back to social faux pas. “Just as a company scares off customers by being unfriendly or by simply not being client-focused, managers are lost for the same reasons”, Viktor Gilz explains.

“So that the employees can feel comfortable from their very first day and concentrate on their job, we assume responsibility for their living and working conditions”, Lisa Mellinghoff says. From property search to relocation management to detailed interior set-up, the company devises new managers’ living environment tailored to their personal needs. “Employees who identify with their company and who feel that they are appreciated and valued not only as a worker but also as a person have an intrinsic drive and working attitude.”

The psychological approach of affective commitment – emotional staff satisfaction and loyalty – is considered essential by the founders of Suite&Co. Viktor Gilz says: “Each effort for the employee’s well-being, in turn, stimulates commitment to the company. Investing in the creation of an ideal living environment, therefore, pays off in the long-term.” According to research on commitment, loyal managers are committed beyond their normal workload, are more responsible and show more personal initiative. Lisa Mellinghoff says: “Emotional attachment to the company minimises the risk of labor turnover and increases productivity.”

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