Bonus Episode mit Colette Rückert-Hennen - Behind the C

Yes, thank you Franz. I'm glad to be discussing with you again today.

I've been a board member at EnBW since 2019, responsible for HR, Law, and Real Estate. The focus is on how to navigate this volatile world with growth, demographic change, and the shortage of skilled workers. It's a field where we can work on the future and come up with things that don't exist yet.

If you translate it, it means keeping people, but I prefer the word 'binding'. Holding implies doing something to keep someone actively. I think everyone should decide for themselves. Companies need to develop so that people want to come and stay with passion for years. At EnBW, our average tenure is 14.5 years, above the German average of 11. We see a trend where it's decreasing from 15 years two years ago. Still, our employees come and stay willingly. And we do this because we want to keep people who bring experience, loyalty, and know the company. Especially in times of skilled labor shortage, retention is a crucial instrument and a core part of our HR strategy.

I'm not sure about the 40 years you mentioned. Those are often employees who did their apprenticeship there. We have many in the technical area. Last year we had an employee who was with us for 50 years and asked to stay longer. I think such long tenures will become rare due to the labor market. When jobs are scarce, employees have options. In my generation, you were happy to have a job and stayed. Now there's more competition and awareness that you need to take care of employees. Whether 40 years is the model, I'm not sure. But you need a certain onboarding time for positions, not just technical but also for culture and loyalty. That takes time and trust. Setting a standard is difficult because it depends on the person and area.

You can't measure it only by average tenure. You have to look at fluctuation rates, sickness rates, and engagement. A low sickness rate is a sign of good culture. We measure an Engagement Index, which is higher than a satisfaction index because engagement means people stay to support the company even in difficult times. Ours has been above global average for years, and we improved it in 2024. So it's not just about how long they stay, but how engaged they are and if they want to develop. We also look at internal mobility and other KPIs.

Exactly. Also employee referrals. We have a program where 25% of new hires come through employee referrals. That's the best sign.

It's a set of about 23 questions, but three key ones: how engaged are you with the company, would you recommend the company, and would you stay with the company. These three feed into the index.

Yes. Satisfaction is about benefits and whether employees are content with what they receive. Engagement goes further: would you reapply and recommend? That's a much stronger indication. Today, many companies measure engagement instead of satisfaction. And you can see how employees stand with the company.

Yes, you have to actively work on it. We also have open comment fields, and in 2024 we received over 30,000 comments on various topics like satisfaction with managers, work-life balance, change readiness. We use AI to aggregate those comments by topic. Each manager then goes into their area and discusses with employees. These comments serve as triggers for workshops.

Yes. The first is always the manager. There are many studies showing that employees leave managers, not companies. That's top one. Second is career development: feeling there's no advancement. Third is compensation: being able to earn more elsewhere.

I'm a systematic person. Things like dog sitters or dinner for fathers as bonding instruments don't address the masses. With over 29,000 employees, one size does not fit all. There are four scientific bonding elements: development and career support, security and transparency of strategy, compensation and benefits, and emotional connection. Compensation is number one — we did market research and found that adequate pay, holiday and Christmas bonuses are the top benefit for both men and women. Then comes emotional bonding, purpose. But you can't just offer emotional bonding without competitive pay. The mix depends on the individual: some prioritize money, others job security, and young talents want quick career progression. So Google's approach might appeal to some but not everyone.

You can't have a custom package for everyone, but if you address the four bonding components, you'll cover the majority. We have mandatory development dialogues beyond the standard performance review. Managers must discuss with each employee where they want to go. Also, we have a digital learning platform with over 11,000 users, offering diverse topics. Regarding flexibility, remote work and flexible hours are huge benefits. Especially women with young children use home office the most. Men use it less. You need to target groups, not just roles. Retention means giving employees the optimal conditions to do their job best. It's not about self-realization. The return-to-office debate is too narrow. It's about enabling employees to do their job well in a complex world, and one size doesn't fit all.

I agree, it's not about self-optimization. The company also benefits. There are always people who abuse the system, and managers must respond. We are social beings, we need interaction. But the team and manager should decide what works for them. That works well for us.

Yes, definitely. Younger people are more willing to change jobs. Baby boomers might have changed once and then stay until retirement. You need to attract talents that fit your company. We need to hire many people — last year we filled 3,500 positions. We also track early fluctuation: if we bring talents in with promises of flexibility but they end up with a manager demanding five days in the office, they leave. That didn't happen before. Our early fluctuation rate in 2024 is 1.9%, showing we invest quality. It's too costly to have people come and go quickly. Demographics also mean we need many young people. Developing new loyalty is a challenge, especially with multiple generations.

Exactly, but also career progression, not just training.

Exactly. Also emotional bonding and purpose. But I'm careful with the word 'purpose' because young women told me they're tired of hearing it. It's about working for a company whose values you support.

Maybe as an inspiring thought: equal opportunity. With the skilled labor shortage, we need more women to work full-time, people with migrant backgrounds, and inclusion of people with disabilities. Diversity and equal opportunity are important criteria for applicants and also feed into emotional bonding. So it should not be forgotten.

Thank you Franz, it was fun.