Existing Employees - Retention bonus vs Performance Bonus

by a searcher from Clemson University

1 year ago

Hi All,
Does anyone have experience offering existing employees a yearly retention bonus after acquisition (think yearly bonus for 3 years for staying with a company)?

This is for key employees in the current business. I have read multiple mixed reviews on retention bonus and am leaning towards a performance bonus that orients the team towards growing the business instead of just "staying onboard".

Thank you,

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5 comments

searcher from UNSW Australia - UNSW Business School

I would think a retention bonus would be effective only within a one year period. Within that time frame you want to hold on to institutional knowledge and get yourself up to speed. Beyond that you would be more focused on organisational performance and would want a more comprehensive performance incentive system.

1 year ago | like reply | 0 likes

searcher from Indiana University, Bloomington/Indianapolis - Kelley School of Business

depending on your goals, if you want knowledge transfer/stability, go with retention bonus, if want growth, go with performance bonus.

1 year ago | like reply | 0 likes

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