Sample Retention Bonus Letter For Employee In Illinois
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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.
Details to Include: Reason for Bonus: Clearly state the extraordinary contribution or innovation that is being recognized. Amount of Bonus: Specify the bonus amount being awarded. Specific Achievements: Detail the specific achievements or contributions that led to the award.
When writing a retention bonus letter, make sure you keep it short and simple. Start by showing that you value the employee, before moving into the details of what the retention bonus is. Offer a way for the employee to express interest in the offer, so that you can move forward with them signing the agreement.
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.
“If the reason is high turn-over and they want to keep clients, that might be a red flag. The company might have bigger issues, so you may want to reconsider. If the company's retention bonus reason is because of a critical project or they acknowledge your value, then you may want to stay.”
How to write a bonus letter Address the letter. In the beginning of the letter, label and address it like you start any correspondence with your team. Announce the bonus. Give details. Congratulate them. End the letter. Use a simple tone. Keep it brief. Consider a template.
When you accept a retention bonus, you're essentially locking yourself into an agreement to stay with the company for a set period. If you get a desirable job opportunity during that time, you'll have to let it pass or risk paying back the bonus. As a result, you may feel frustrated and stifled in your role.
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.
