Hiring bonuses are intended to convince competitive applicants to accept job offers and stay with the company for at least the time required to earn the extra pay. These incentives have grown more popular over time. In fact, the number of job listings mentioning sign-on bonuses has doubled in the past few years. A recent survey showed that 38% of organizations are offering some kind of bonus to their employees, and sign-on bonuses are the most prevalent at 79% of all types offered.
Whereas a hiring bonus brings talent to the team, a retention bonus is used to keep them on the team. This is typically a one-time payment that rewards high-performing employees and/or employees who have worked with the company for a long period of time.
In the past, employee retention bonuses (ERBs) were mostly used in mergers and acquisitions to retain the key talent in place at the acquired organization. Now, a national labor shortage resulting in a tight labor market has employers reconsidering the use ERBs for their entire workforce.
With data at their disposal, employees have become more empowered than ever at leveraging their job searches and negotiations. It’s no longer just about headcount; employers must pay competitively in order to attract what they need. Retention bonuses are an impactful way to show employees they are valued—and keep them from jumping ship for a new opportunity.
Considering an ERB? It doesn’t have to be a cash payment! Elite Rewards’ offers an online rewards platform. It is a rewards website that allows your organization to build long-term employee loyalty and consistently experience positive repeat behavior in your company.
- Customizable, “plug-n-play” platform
- Unique program URL
- Website content and illustration to mirror your organization’s branding
- Minimal administration (simple to set up, manage & track)
- Industry leading gift selections
- Customer support
Your company has complete ownership of point values and how the points can be earned. Users are awarded points that have a cash value; the points then can be redeemed by selecting rewards items under the product menu.