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The company my buddy works for is up for sale, and they're giving him a retention bonus if he sticks around for a while. He has not heard that anyone else is getting one, but that would be confidential anyway. I think he's on shaky ground, but if the company does sell, he does play a strong role there. He's not too nervous, but I think he should be looking for jobs now rather than hanging around to see what happens. He thinks if his company sells, he might see some new opportunities.
Is a retention bonus a good sign (as opposed to being in the same situation and not getting one)?
I got a retention bonus at my job due to "shaky" circumstances. My shakiness was due to the team I was managing and the lack of direction in my department. I was working crazy hours and I was basically losing my mind to the point that I requested a demotion.
I did do some research on my own though and it appeared that some people think retention bonuses are bad news. The theory is that all they are doing is keeping someone around who doesn't want to be there (not always true), or that all that person is going to do is stick around for the year or whatever vesting term and then leave (again, not always true). In my case, it was a promise that things would get better and in my opinion a form of extra compensation to make up for the BS I was dealing with. Anyway, it turned out good for me. I got some extra dough and now work has settled down. Had I have not received the retention bonus I would just be out the extra money, so it worked out for both parties.
I was working for a company that was sliding towards bankruptcy in 2008. Everyone knew it was coming, but everyone also knew that it would reorganize with less debt and move on. The first part of January the CEO held a call and handed out retention bonuses to make sure his "valuable team" would stay through the transition. I got $6000. I was laid off a month later.
So my experience says retention bonuses don't guarantee anything.
Well, if you're going to get the boot, you might as well get a bonus out of it. You can always look for a job later and be able to tell your new prospective employer that the last guy paid you to stay until you got laid off.
I don't see how that can be a bad thing. You can always say yes, and then start interviewing in case you find something better.
Well, if you're going to get the boot, you might as well get a bonus out of it. You can always look for a job later and be able to tell your new prospective employer that the last guy paid you to stay until you got laid off.
I don't see how that can be a bad thing. You can always say yes, and then start interviewing in case you find something better.
Yeah, I basically told him not to get complacent is all.
Is a retention bonus a good sign (as opposed to being in the same situation and not getting one)?
It usually only acknowledges that they want to keep him around at least until the acquisition is complete and the dust has settled. It doesn't really guarantee anything beyond that.
I went through an acquisition at my last job and everyone on our team received one so that operations from both companies wouldn't experience any hiccups. However, many of us still left and our director was let go about six months after we received our retention bonuses.
It's definitely not a guarantee to job security beyond the post-closing period.
My little business unit was sold a year ago. I get a $20K retention bonus in 8 or 9 days. That bonus slowed down my incentive to go find another job. After it pays out, I'm going to increase my job search activity.
All bonuses paid in an upside year are for retention. In any financial institution if a company doesn't share the wealth, more than 20% of the workers would leave after new years.
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