Then you want to go straight into what is in this letter: the offer of a conservation bonus agreement. We advise you to get straight to the point: if your agreement stipulates, for example, that the person will work for you for two years, but that he will be terminated after 15 months, the company will pay half of the bonus. What happens if a person is terminated or terminated, since the agreement is used to keep your employee in your organization? After all, things happen. Want to learn more about storage bonus agreements? Download our example here: More than just a model, our step-by-step interview process makes it easier to create an employee loyalty agreement. Save, sign, print and download the document when you`re done. This agreement must be solid and easy to understand. So be sure to talk to your legal team before you offer it, and even tell your employee to check with his or her lawyer. The last thing you want to have right after a big business event like a merger or acquisition is to end up in court. A staff retention agreement should help to maintain valuable employees in times of uncertainty and transition. If your business is facing a buyout, merger or other management changes, you can use an employee loyalty agreement to encourage valuable employees to stay in the business so you have the opportunity to continue your business without interruption. Want to learn more about important forms of employment? For more information, check out our HR guide. Other names for this document: Employee Loyalty Plan, Employee Loyalty Contract, Employment Contract If you start writing your retention bonus contract, you must first understand how your bonus should work.
Normally, companies determine, based on a percentage of the employee`s normal salary, the amount of the bonus to be offered. Imagine that a retention bonus agreement is the opposite of a severance agreement. While a compensation agreement involves payment if the employee agrees that they have been terminated fairly, the retention bonus contract offers them a payment to remain fixed. If we do not, let`s talk directly about how you can make one of these agreements to make sure it does everything you need. And, as we said above, the first step is to create a great conservation bonus deal trying to stay in the file so you can use it if you need it. One way or another, you need to fully understand the financial side of the bonus before offering the incentive to your employees. However, we advise you to reach an agreement during the early stages of the merger or acquisition, so that you can fill out areas later, so that you have registered a document and are ready to send it. Good people have value. If you want to encourage an employee to stay in your business, you can use a loyalty agreement. It describes the agreement between the employee and the company that the employee will remain in the business for a certain period of time and will receive a guaranteed retention bonus (even if the business may face a purchase or a change of direction or ownership, which could ultimately result in the loss of a job). It is a fact that mergers and acquisitions generate a lot of turnover (30 percent of workers can be laid off during the process). At the same time, companies must also ensure that key talent is retained during the move, where a retention bonus may come into play.