In the context of demographic change and the associated shortage of skilled workers, employee retention is becoming increasingly important for companies. It is not only becoming more difficult to find highly qualified employees for the company, but also to retain the existing employees. The competition for highly qualified personnel is intense. The departure of such an employee is not only costly and time-consuming for the company, but can also completely derail small and medium-sized enterprises, pushing them out of the market. This work aims to demonstrate the important and essential role that personnel management plays in employee retention. It will analyze the psychological bond between employees and the company and examine personnel management practices. Finally, measures for employee retention will be presented.