Retention agreement 2025

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A retention bonus agreement also called a stay bonus agreement is a contract that encourages staff to commit to staying with an organization for a specific time frame. Employers use them as retention tools to stop essential team members from leaving at critical moments for the business.
The obvious benefit for a retained employee is the financial incentive, which can be up to 15% of their annual base compensation. Agreeing to a retention bonus arrangement also has a positive impact on the relationship between an employee and a company.
Retention is a sum, generally deducted at each monthly payment notice, to provide the client with some security that the contractor/sub-contractor will return to correct any defects during the defects correction period, or defects liability period.
In construction, contract retention (or retainage) is a percentage of a contractors fee thats held until they finish a project. Contract retention acts as a warranty for property owners. It ensures a contractor will complete a project to the agreed specifications.
Retention Arrangement means any written agreement executed by the Company (or its applicable Subsidiary) and an Optionholder on or prior to the Closing Date, pursuant to which such Optionholder has agreed to waive a portion of his or her Option Consideration (to be applied to reduce such Optionholders Closing Option

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A retention strategy is a plan organizations create and use to reduce employee turnover, prevent attrition, increase retention, and foster employee engagement. While some turnover is inevitable, building a retention strategy to prevent as much voluntary turnover as possible can save an organization time and money.
If you enjoy your job and want to remain with the company, it makes sense to accept a retention bonus if your employer offers it. Remember, you have the power to negotiate the bonus if you feel like its too low. You can also ask for different terms if your employer wont offer more money.

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