The declining bond between employees and their company combined with the significant disadvantages for employers of adverse personnel quitting lead to an increased importance of retention management. This paper explores what kind of measures and binding methods retention management provides and which effects it has on the staff. Since small and medium-sized enterprises, in comparison to large enterprises, are usually lagging behind in the development of their human resources management, this paper focuses on small and medium enterprises. The writer describes the current status of retention management in Lower Austrian small and medium-sized enterprises, the methods offered by small and medium-sized enterprises as well as the efficiency of these methods. Furthermore this paper presents a detailed description of material incentives and their effectiveness as a means to retain staff. To deal with this topic, this work draws on literary sources as well as empirical research, including qualitative expert interviews in Lower Austria. This diploma thesis concludes that entrepreneurs in charge of leadership exert some kind of retention management automatically. Based on economic reasons, retention management is becoming increasingly important. The main binding factors of retention management are corporate culture, working atmosphere, leadership, personnel development and the organization of working time. Regarding material incentives, it is fundamental to focus on a fair distribution of money. Although material incentives have a very strong binding effect, they should be combined with other intangible factors to keep the satisfaction of employees permanently high.