The use of retention bonuses — cash payments offered to employees as an incentive to stay on the job through a specified date or upon achievement of a specific milestone — is at an “all-time high,” with almost 60% of organizations making the investment, according to a recent study by WorldatWork.
Do Retention Bonuses Pay Off?
They can be a useful tool in the short term, but there’s no evidence they increase long-term loyalty.
February 06, 2023
Image Source/Getty Images
Summary.
In the wake of the Great Resignation, the use of employee retention bonuses is at an all-time high. But is it money well spent? Ultimately, when used surgically, retention bonuses can be an effective short-term tool for senior and hard-to-replace roles. The author outlines four steps to ensure your company is using retention bonuses effectively.
New!
HBR Learning
Attracting and Cultivating Talent Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Attracting and Cultivating Talent. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Discover how to attract, hire, develop, and keep talented people who will grow and thrive throughout their employee journey.
Learn More & See All Courses
New!
HBR Learning
HBR Learning
Attracting and Cultivating Talent Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Attracting and Cultivating Talent. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Discover how to attract, hire, develop, and keep talented people who will grow and thrive throughout their employee journey.