We’ve been giving out large bonuses, but some employees leave soon after. I’m thinking about having them sign an agreement to stay for a year or pay it back if they leave early. Does anyone know if this works? Has anyone tried something like this?
That sounds tricky… I’m not sure if you can make them pay it back after they’ve earned the bonus.
Juno said:
That sounds tricky… I’m not sure if you can make them pay it back after they’ve earned the bonus.
Yeah, I was thinking the same. It’s frustrating because they take the bonus and leave. I’m wondering if structuring it differently would help.
If I remember right, bonuses are usually for work already done, so making someone pay it back could be tough legally.
Lennon said:
If I remember right, bonuses are usually for work already done, so making someone pay it back could be tough legally.
Exactly. I think you’d have to frame it more as a retention bonus. Like, they only get the bonus if they stay a certain amount of time.
I’ve seen companies do retention bonuses, but yeah, you definitely need it in writing to make it official. Maybe get a lawyer to help you with that.
Hollis said:
I’ve seen companies do retention bonuses, but yeah, you definitely need it in writing to make it official. Maybe get a lawyer to help you with that.
Good call. I guess I’ll need to get some legal help to make sure it’s enforceable. Thanks for the advice!
Just to clarify, a retention bonus would mean they have to stay for the year to even get it, right?
TriviaTitans1 said:
Just to clarify, a retention bonus would mean they have to stay for the year to even get it, right?
Yeah, exactly. They wouldn’t get the bonus until after they’ve stayed for the agreed period.
I think it’s smart to offer a retention bonus instead of paying it all upfront and hoping they stick around. Seems like a safer bet.
Hal said:
I think it’s smart to offer a retention bonus instead of paying it all upfront and hoping they stick around. Seems like a safer bet.
Yeah, I’m thinking that might be the best route. Thanks, everyone!