We’ve given some big bonuses recently, but a few employees left shortly after. I’m considering making them sign something that says they have to stay for a year or give the bonus back. Anyone have thoughts or tried this?
That’s tricky… Once a bonus is earned, it might be hard to ask them to pay it back if they leave.
Will said:
That’s tricky… Once a bonus is earned, it might be hard to ask them to pay it back if they leave.
Yeah, I was worried about that. It just sucks when they take the bonus and quit right after.
Bonuses are usually for past work, so having them repay it if they leave might not fly legally.
Andi said:
Bonuses are usually for past work, so having them repay it if they leave might not fly legally.
Totally agree. You might want to structure it as a retention bonus, where they only get it if they stay a set amount of time.
@Hayes
Yeah, that’s what I was thinking too. It’s like giving them an incentive to stay, rather than a penalty if they leave.
We’ve used retention bonuses before, but you’ll definitely want to have a lawyer draft the agreement to make sure it’s legal.
Denny said:
We’ve used retention bonuses before, but you’ll definitely want to have a lawyer draft the agreement to make sure it’s legal.
Good point. I’ll look into getting legal help to make sure everything’s solid. Thanks for the input!
So just to clarify, a retention bonus means they don’t get the bonus unless they stay the full year?
Alden said:
So just to clarify, a retention bonus means they don’t get the bonus unless they stay the full year?
Exactly, they don’t get it until after they’ve stayed for the agreed period of time.
A retention bonus seems like a better option than just giving them the money upfront and hoping they stick around.
Koa said:
A retention bonus seems like a better option than just giving them the money upfront and hoping they stick around.
Yeah, I think that’s the direction I’ll go in. Thanks for all the advice!