Pay · HR glossary

Retention Bonus

A retention bonus is a payment intended to encourage an employee to remain for a specified period or through a particular event. Eligibility and payment conditions should be documented.

Example

An employer offers key project staff a bonus payable after they remain through an agreed transition date and meet the stated conditions.

What to keep in mind

A bonus may delay a departure without addressing its cause. Check lawful repayment or forfeiture terms, communicate conditions clearly and consider fairness to employees who are not included.

Further reading

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