Dollars for Those Who Stay on Job

Has you ever received a bonus just to stay with your company for awhile? What may sound outlandish to some is becoming a reality at many financial services companies.

A survey by Right Management Consultants, an international human resources consulting firm in Philadelphia, concluded that roughly half of the banks and other financial services companies that participated in the study pay bonuses to retain workers.

"It's become pretty standard in the industry," said Ken Herz, a spokesman at Chase Manhattan Corp., who says his bank has paid out such bonuses for years.

Right Management conducted the survey in response to companies' requests for data to guide them in setting retention policies. Most were on the verge of plant closings, mergers, and other changes, which they feared might scare top performers into shopping around for other job options.

"In an environment like this, it's no surprise that many employees consider jumping ship," said Richard J. Pinola, the chief executive officer of Right. "Employers need to find ways to stop the talent drain and save additional recruitment and training costs."

"Stay bonus" payments ranged from 25% to 50% of an employee's annual base pay; when a fixed dollar amount was used, it ranged from $1,300 to $20,000, depending on the job level.

Other formulas considered how long the employees had worked for the company, how long they agreed to stay and work during the transitional period (e.g., the time leading up to plant closing or completion of a merger integration), and the importance of the position to the restructured organization.