1. #1
    Unregistered

    What do we mean by Retention bonus? Who all are eligible for this?

    I am studying in final year BBA. We have once concept called as Retention bonus in Human resource management. Is there any such type of bonus? What do we mean by Retention bonus? Who are all eligible for this bonus?

  2. #2
    Kangaroo Array
    Join Date
    Aug 2012
    Posts
    678

    Re: What do we mean by Retention bonus? Who all are eligible for this?

    Yes,there is a concept of retention bonus.Rather it is implemented practically to a great extent in modern corporate world.It is often seen that the employees are switching between companies due to higher salaries,better facilities,etc.Inorder to stop the employee from leaving a corporation ,the scheme of retention bonus is formulated by the company from time to time.
    Retention bonus is basically a extra sum of money given to the employee apart from his original salary as an incentive to make him/her satisfied with the company.The sum depends on the rank of the employee in the concerned company.It is usually given by the company when it is in need of employees for better production,handling clients.Sometimes it is also seen that retention bonus to an efficient employee to ensure that he/she does not leave the concerned company.Hence,it is a measure to stop the employees from leaving the company and going to other organizations.
    The sum usually is 10% of the original salary of the worker.But it can also range upto 50% of the original salary of the worker if he/she is very efficient.
    Inorder to be eligible,you must be good at your work,efficient and also keep contacts with other companies.

  3. #3
    aman Array
    Join Date
    Jul 2012
    Posts
    847

    Re: What do we mean by Retention bonus? Who all are eligible for this?

    With the increase in competition companies find it very difficult to keep there important or key employees in the company.

    As experienced employees are in regular demand .To keep those important employees with the company,the organisation

    uses this strategy by giving an additional bonus with the salary. This also give them additional benefit of retaining the employees

    without increasing there salary.

    This practice increases when company is going through some important phase of there operation

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