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Stay On Bonus Agreement Template

Stay On Bonus Agreement Template 2026

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The Stay On Bonus Agreement outlines the terms under which an employer provides a monetary incentive to an employee for remaining with the company during a specified employment period. It details eligibility criteria, bonus amount, payment schedule, conditions for receiving the bonus, and confidentiality provisions. The agreement aims to retain the employee's services and enhance morale while ensuring compliance with company policies.

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What is a stay bonus agreement?

What Is a Stay Bonus Agreement? A stay bonus agreement is a percentage raise in compensation that a company pays an employee if they agree to stay for a defined period of time. In general, organizations offer the stay bonus agreement as an incentive for employees to stay when the turnover rate is expected to increase.

What is another name for a stay bonus?

Retention bonuses, also known as stay bonuses, are monetary incentives paid to employees beyond their regular salary to encourage them to stay with the organisation for a specified time.

What is a bonus agreement?

A bonus agreement is an arrangement between two or more parties where one party agrees to pay another a sum of money, usually determined by the revenue generated. The agreement sets out how long it will take to make the payment and any conditions that need to be met before the bonus is issued.

How much should a stay bonus be?

Retention bonus rates typically range between 10% and 15% of an employees base pay, and companies often offer them as a lump sum or in biweekly or biannual installments. Theyre powerful retention tools as long as business and employee needs align.

Is a retention bonus a good thing?

Benefits of retention bonuses Company loyalty: If an employee accepts an ERB and signs a contract to remain with the company, that employee is unlikely to leave before the end of the contract. This can help establish longer-term employee loyalty .