This form is a sample letter in Word format covering the subject matter of the title of the form.
Sample Bonus Template For Retention In Franklin
Category:
State:
Multi-State
County:
Franklin
Control #:
US-0002LR
Format:
Word;
Rich Text
Instant download
Description
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FAQ
Another common “red flag” in a retention agreement is the stipulation that the employee's receipt of the bonus will be determined in the employer's “sole discretion.” You do not want to put this type of power in your employer's hands.
The lesson is this: In proposing a retention bonus or agreement to your employer, you should first emphasize (a) why it would be in the interests of the employer, and, then (b) what benefit will come about to the employer if it offers the retention bonus.
Generally speaking, a retention bonus ranges from 25-95% of the employee's base salary. The company must offer an amount that is meaningful to the employee for it to properly incentivize him/her to sign the retention contract.
What Is a Good Retention Rate? A good percentage for employee retention is 90% or more. That means keeping the turnover rate to 10% or less.
Be Prepared to Negotiate: Start by asking for a slightly higher amount than what you would be satisfied with, allowing room for negotiation. In this case, you would ask for a retention bonus of $10500. Ultimately, the amount you ask for should reflect your worth to the company and be aligned with industry standards.
⭐ Leadership and staff alike should know that employees can always ask for a retention bonus — they don't have to wait for their employer to offer one. If an individual requests a retention bonus, schedule a one-on-one meeting to discuss their proposal and explore their options.
The lesson is this: In proposing a retention bonus or agreement to your employer, you should first emphasize (a) why it would be in the interests of the employer, and, then (b) what benefit will come about to the employer if it offers the retention bonus.
8 reasons why you may use a retention bonus The company is going through change (merger or acquisition) or tough times: It is tempting for a valued employee to look elsewhere when there is uncertainty about the future of the business. A retention bonus is a step to encourage loyalty and faith in the company.
Who can receive a retention bonus? Any employee is eligible for a retention bonus. Most often, companies only give retention bonuses to highly skilled employees that may be difficult to replace. Similarly, employees with specific company or project knowledge are more likely to receive a retention bonus.
