Retention Bonus

One of the most effective tools your company can use to keep your Techs AND lure potential Techs is a "Retention Bonus". I have helped many employers custom design retention programs.

Here are the basics (also see the calculation below):

  • Take the total hours turned in a quarter, set aside an additional $X per hour they have turned that quarter. Repeat each quarter. After 1 year and 1 additional quarter, the Tech is eligible for his FIRST quarter bonus. Each quarter after the Tech gets the next quarter. However, Tech leaves. womp womp, forfeits the bonus. I can tell you from experience when I was a Manager, when a Tech gave me the notice and I reminded them of leaving $5k+ on the table, that flipped them faster than a Pro Wrestler in WWE.

  • Example using assumptions: Let's say Tech turns 48 flat rate hours every week, we will use $2.25 per hour retention bonus, 52 weeks a year = 13 weeks in a quarter year, $2.25 x 48 hours = $108 each week, x 13 weeks (amount of weeks in a quarter) = $1,404 per quarter. After a year, if they leave, bye bye to $5,616 Bonus Money!!!!