how does a retention bonus work

[BKLounger]

So the company i work for is in the beginning stages of being bought out. I thankfully was not part of the first round of layoffs thanfully, but for serverence people are receiving 20% of their salary as severence. Now I have been hearing talk about possible retention bonus's. What is a retention bonus. Does this mean they keep you on through the merger and then they axe you. Or are they permanently keeping you. Also if they give you a retention bonus and then they axe you does this now mean you don't get a severence. What is a typical amount for a retention bonus?

 

[EagleKeeper]

The retention bonus is to retain key workers until the takeover/merger is complete.

Otherwise is would be possible that the company would be crippled and no longer able to be functioning.

You may not have a job when the merger is complete; however, you will have a job until then and a bonus at the end.

The amount is dependent on the perceived value of you and the needs of the merger.
If they are offering a 20% severance, the retention should be more than that.

One problem with the retention is that, if you will be out of a job at the end, everyone else who took the severance has already been looking and possibly find postions. You now will scramble for the left overs.

 

[spidey07]

Tread carefully. Manytimes retention bonuses are used as a carrot to dangle until all the hard work is completed and then yanked away when you are let go.

 

[fire400]

that bloody sucks, the Starcraft 2 thread gets locked.

like a retention cable. saves the old for last. left over dinner anyone?

 

[dartworth]

a catch 22 it seems...:/

 

[D1gger]

As stated above, a retention bonus is intended to entice key employees to stay during a merger or take-over. Usually it states that if you stay until such and such a date you will receive a bonus of $XX. You should negotiate with them to ensure that if after that date they decide your position is redundant and they lay you off, that you are entitled to severance pay of $YY.

 

[jupiter57]

Originally posted by: D1gger
As stated above, a retention bonus is intended to entice key employees to stay during a merger or take-over. Usually it states that if you stay until such and such a date you will receive a bonus of $XX. You should negotiate with them to ensure that if after that date they decide your position is redundant and they lay you off, that you are entitled to severance pay of $YY.

That's the way to go!
Facing possible layoff, offered a retention bonus.
Sure, now throw them some demands of your own, they will surely fear you then and offer you lifetime employment!