Other names in this document: Staff Retention Plan, Staff Retention Contract, Job Retention Contract The next part of the agreement is about how the person`s role in the newly created organization changes, the duration of the agreement, and the amount they are paid if they stay long enough. There are many reasons why a company wants to benefit from a retention bonus. However, the most important thing is to keep key talent on board for as long as possible during a merger or acquisition, given that in these turbulent times, top talent often goes into calmer waters (or is poched by competing companies). Let`s dive straight into how you can create one of these agreements to make sure it does everything you need. For example, if your agreement states that the person will work for you for two years, but will be terminated after 15 months, the company will pay half of the bonus. SHRM passes through quickly and keeps the letter fluid. You need to make sure that the amount you are willing to spend on the retention bonus agreement is enough to entice the person to accept the offer without affecting your end result, which can already feel the heat of all the turnover that can occur during an M&A. If all these details are hammered, you can insert a place where your collaborator can sign the document. It is a fact that mergers and acquisitions generate a lot of revenue (30% of employees can become redundant during the process). At the same time, companies also need to make sure they retain important talent during the move, where a commitment bonus can come into play. And the first step is to establish a commitment bonus agreement that your employees can verify and sign.
Would you like to know more about custody bonus agreements? Download our example here: all these things must be mentioned in the bonus retention note so that your employee fully understands what you are offering him. The last thing you want is either for your employee to be confused and unwilling to accept the offer, or for countless collaborators to appear with simple questions that you could have answered in an email/agreement.. . . .