Transform your daily workflows and Retention Agreement - Create Signing Links with Link2Fill

Aug 6th, 2022
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How to Retention Agreement - Create Signing Links with Link2Fill

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All right, everybody in this video, were gonna talk about the SMMA legal agreement. Hey everybody, David Schalis back here again with 2GuysBuildaBiz on YouTube, the best place on YouTube for anything related to starting growing or scaling your business online. If those topics are relevant for you, why not hit the subscribe button and tap? Like if you find this video useful? One more thing. If you tap bell and notifications, YouTube will let you know the next time that we post a free piece of valuable content. Just like this one. Now, before we get into this video and talk about the SMMA legal agreement, just wanna provide a quick disclaimer. Now that Derek, nor myself are legal attorneys, lawyers, anything of the sort. So this is not legal advice. Were gonna provide this to you as a free piece of value. However, Id encourage you to go and speak with legal counsel or some sort of business attorney prior to sending this out, just to make sure that it offers you adequate coverages for

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Both agreements encourage employees to commit to the organization; however, retention bonus agreements generally provide a better compromise between shareholder interests. This is because severance pay will be paid upon contract termination whether the employee stayed based on the agreed-upon tenure or not.
For example, if the employee completes 9 months of service, the employee must repay 25% of the retention bonus paid (for the remaining 3 months of the year for which the employee did not provide service).
When writing a retention bonus letter, make sure you keep it short and simple. Start by showing that you value the employee before moving into the details of what the retention bonus is. Offer a way for the person to show interest in the offer so that you can move forward with them signing the agreement.
Retention agreements are geared to an individual regardless of leadership position, serve the employers interest and typically expire after a set time. Severance pay arrangements protect employees terminated against their will, whether individuals or an entire workforce.
A retention bonus, also called retention pay or a retention package, is a lump sum of money a company pays to an employee to stay with the company for a specific amount of time.
Bonuses are typically paid in either one large lump sum, or occasionally employers will pay in regular installments. The bonus is typically offered as a percentage. For example, a 10% retention bonus for an employee that makes $124,000 a year would be $12,400.
Reimbursement Agreement: Should a retention bonus be paid in periodic installment, an agreement may require the employee to repay or reimburse the company for previously received retention bonuses should the employee leave prior to the final payment.
A retention payment (sometimes called a stay bonus or retention incentive) is a lump sum payment outside of an employees base pay that is offered as an incentive to convince a key employee to remain in their current position for a specific amount of time to meet critical and priority business needs.

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