Employee Engagement and Empowerment as Gateway towards Retention: The Case of Volkswagen Group

Two themes of best human resource management practices –– employee empowerment and engagement have been considered a fundamental tool to increase the retention within any organization. The research paper utilized qualitative-descriptive design through secondary sources of data collection, which centralized on the case of Volkswagen Group, its retention rates and various programs offered to employees. The analysis establishes the link between employee retention and the two variables employee empowerment and engagement. It has been revealed that employee empowerment and engagement are significant links to retention. Moreover, both empowerment and engagement contribute to a more open, innovative environment, faster decision-making, and more importantly, create loyalty and organizational commitment. The company under study serves as an excellent example of high retention rates as well as a company that focuses a lot on its employees and their happiness within the organization despite its concerns in the past.