Hi Everyone.
I work for a IT firm in Bangalore as HR . I have been asked to work on th Retention Bonus for Senior Management staff.
I need help on
- what percentage of the salary (Gross) to be taken or
- have a fixed amount?
- What is the normal standard / terms for paying the retention bonus for Seniors - Is deferred bonus pay for seniors OK.
- Sample format of letter
Please let me know on the above at the earliest. I need to come out on the first draft by 23rd April07.
Regards
Anu
From India, Bangalore
I work for a IT firm in Bangalore as HR . I have been asked to work on th Retention Bonus for Senior Management staff.
I need help on
- what percentage of the salary (Gross) to be taken or
- have a fixed amount?
- What is the normal standard / terms for paying the retention bonus for Seniors - Is deferred bonus pay for seniors OK.
- Sample format of letter
Please let me know on the above at the earliest. I need to come out on the first draft by 23rd April07.
Regards
Anu
From India, Bangalore
a good indiactor would be least 30 % pay as performance based.
defered hold good in case of stock options or in cases where the said incentive is doeld our annually and is hinged with the share price/ market share etc....
surya
From India, Delhi
41defered hold good in case of stock options or in cases where the said incentive is doeld our annually and is hinged with the share price/ market share etc....
surya
From India, Delhi
Hi Surya, How is retention bonus given and wat are the considerations we need to keep in mind while designing a retention bonus? Regards, Rajesh
From India, Hyderabad
From India, Hyderabad
Hi Anu,
In retention bonus u can have a fixed amount too whereas what i can suggest in here is that u prepare a fixed amnt slab but u can even mention that the same will be performance based. the same can be given as a deferred benefit too. In our org till last yr it was 10% of the annual gross salary (which in itself was a good amnt ;) ) and the same was even subject to productivity, team accomplishments etc.. but this year we have got this flat slab system as per the grade of the manager. And then the same is provided at the yr end.
Letter format can be as under
"
In view of the excellent performance you have demonstrated in the position of ________, I am delighted to inform you that you qualify for the productivity bonus.
The gross bonus payment amounts to Rs. ____/-. We are required by law to deduct tax at source from your gross bonus. The net amount shall be directly transferred to your bank account by ____.
We are delighted to have you in the our team as you have always managed the responsibilities entrusted to you in an above par manner.
We hope that you will continue to move ahead on the path of excellence.
Once again, accept our congratulations on the same.""
From India, Chandigarh
In retention bonus u can have a fixed amount too whereas what i can suggest in here is that u prepare a fixed amnt slab but u can even mention that the same will be performance based. the same can be given as a deferred benefit too. In our org till last yr it was 10% of the annual gross salary (which in itself was a good amnt ;) ) and the same was even subject to productivity, team accomplishments etc.. but this year we have got this flat slab system as per the grade of the manager. And then the same is provided at the yr end.
Letter format can be as under
"
In view of the excellent performance you have demonstrated in the position of ________, I am delighted to inform you that you qualify for the productivity bonus.
The gross bonus payment amounts to Rs. ____/-. We are required by law to deduct tax at source from your gross bonus. The net amount shall be directly transferred to your bank account by ____.
We are delighted to have you in the our team as you have always managed the responsibilities entrusted to you in an above par manner.
We hope that you will continue to move ahead on the path of excellence.
Once again, accept our congratulations on the same.""
From India, Chandigarh
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Training e-Brochure for Senior Management.doc