Possible Retention Bonus - Should I read anything into this?

[devnull]

The company I work for is going through a bit of a change at the moment - quite a bit of downsizing in the business due to massive changes in the market we play in and poor performance. A few of my colleagues have been given voluntary redundancy, others on performance improvements, etc.

It has been suggested to me (by someone reasonably high up) that I might be on the receiving end of a retention bonus at some point, and that I am very unlikely to be considered for redundancy as I'm considered key to the business (that's nice of them...). The shakiness of the company did have me considering a new job, but this has made me think twice.

Has anyone else got any experience of receiving these and what the conditions were? Are these negotiable? Can they be considered a poisoned chalice as such?

[edc]

I've both received them and designed them in circumstances the same as yours and also more positive circumstances. The idea is simple, keep the resource/individual you need to complete the work by dangling a carrot. How much is good for you is subjective. If you think work conditions are tough now, they may be much tougher later.

[rog007]

The aim of that incentive has achieved its goal by influencing your behaviour (you were thinking of leaving and now you're having second thoughts).

Only you know what your longer term plans are and if this change in company fortunes doesn't destabilise those plans then the incentive on offer could be considered a bonus. If however on the other hand things aren't now going to plan, a review of your personal strategy may see you best off by leaving the company.

In short; think hard and don't be seduced by the incentive for the wrong reasons.

Good luck!

[944fan]

I was offered one when I resigned end of last year. They offered me £10K bonus to stay a year. I re negotiated to £5K pay raise now and £5K bonus after a year.

So far for them it has worked, I haven't left. I have some targets which the bonus is dependent on, most are complete bks so I hope I wont be held to them.

I also said my staying was dependent on them making some changes, they have happened albeit slowly and minimally. This is why I wanted the pay raise. If they did nothing and I left 6 months later I have gained FA.

I keep being approached by recruiters and have been saying to them that if I were to leave now I would lose that bonus so unless it becomes unbearable here (or an amazing opportunity came up) I will staying till Nov at least out of shear bloody mindedness to get my bonus. After I that though who knows?

[jonnydm]

I received a retainer whilst working as a contractor. I would receive £x extra per day that I stayed on the basis that I remained until either the end of the contract or a time that was mutually agreed. When I moved on, I then received the amount as a lump sum.

[anonymous-user]

I think the real questions are a) what strings are attached and b) is it real.

[Foliage]

Its politics, bluster and positioning, they are trying to influence your behaviour. Its possible that they want rid of you but at a time convenient for them, once more senior staff get a handle on the key functions that you do. If things are falling apart around you it might be a good time to seek alternative employment.

Good rule of thumb is, unless you have it in writing with signatures on, then take it with a massive piece of salt.

[K50 DEL]

Having been burnt by a retention scheme to the tune of almost £250k I would say tread with caution, if possible I'd ask for proof that the financial amount is being held in an escrow account, how I kick myself every day for not doing that.

[jonnydm]

K50 DEL said:

Having been burnt by a retention scheme to the tune of almost £250k I would say tread with caution, if possible I'd ask for proof that the financial amount is being held in an escrow account, how I kick myself every day for not doing that.

Wow! No recourse on that? Assume firm went bust?

[K50 DEL]

jonnydm said:

K50 DEL said:

Having been burnt by a retention scheme to the tune of almost £250k I would say tread with caution, if possible I'd ask for proof that the financial amount is being held in an escrow account, how I kick myself every day for not doing that.

Wow! No recourse on that? Assume firm went bust?

Owner of the firm died, company was closed by a lawyer acting for his widow.

Case is currently going through court trying to regain the money I've lost... fingers crossed!

[ChasW]

We sometimes offered them to key staff if and when a new major contract was started and we needed continuity in the crucial early phases. Signed letter from the boss ccHR. Just a tool to stop people leaving when it would be really inconvenient for the business. Wasn't required for those that worked on winning the contract as they shared in a bonus pool that paid out at various points during the term.