Retention bonus advice please

chocodawn

I am the finance officer in a business that is currently restructuring due to a loss of government funding. All 18 employees are to be made redundant within the next 3-6 months, with the company changing to trade as a charity and re-advertising a small number of posts. As yet, I do not know if one of these posts will be suitable for me/given to me. I would have to apply in the normal way. I have been at the business less than 2 years so am not entitled to statuory redundancy.
The director has suggested to me last week that they would like to know what incentive would guarantee that I stayed with then until the business restructure was complete. They did state that they would want me in the new business, but it will be an external board hiring so no guarantees! A financial incentive was suggested which Iv since found out myself is called a retention bonus, but no figures were mentioned, just asking me to test the waters I think. I've said I need some time to consider. Does anyone know what I could ask for? Is it in my interest to do this? Presumably if I saw a great post advertisied in the meantime I couldn't apply, or would this just mean I didn't receive the bonus?

UncleZen

As far as I know (and Im no expert) a retention bonus is offered to staff who are to be made redundant but the company want to keep on for a longer period.
i.e. go now and you get £x, go in n months and you get £x+bonus
How much that bonus might be could potentially depend on many things, e.g. salary, length of employment, length of bonus period, age, position.

Lisap84

Hi Chocodawn,

the company i work for has offered us a retention bonus to stay as we found out about a restructure in january that will not happen until september. I am a PA/Office manager and got offered £3,500 but know people in your position would have got more based on what i was offered. I guess it can't harm to work out a figure that would be a couple of months pay (which is what mine works out at) or something similar that you would be happy with.

hope this helps :-)

LoopyPrune

My 30 day consultation period started on the 7th June. The union has negotiated a £2500 retention bonus to be paid with our redudancy tax free at the end of the term. We will also be paid an extra premium of £40 per 12hr shift that will also be paid at the end of the term (upto a maximum of £4000) The way the company is talking I could still be working at this plant until early next year so Im looking at a good 6 months of saving like crazy, then Im gonna get a big wedge of cash ontop. Takes the worry out of getting laid off.

Be ruthless. They need you more then you need them now. Company loyalty went out of the window the minute they served notice. Dont burn any bridges but dont get taken for a fool. Be firm.

Im a telehandler driver so basically I can find more work the minute I leave this company and I made sure my boss knows this.

On the flip side the have also offered me a chance to relocate but that means moving my family 300 miles further south. Something Im not prepared to do for a company already on the backfoot.

chocodawn

Thanks to all for the advice. I have tried to get them to give me an offer but they want me to suggest something Im happy with. I only work part time but this does make it more difficult for me to find suitable alternative work. I'm thinking to ask for 3 months pay. Does that sound reasonable? Ive only been there a year so wont get anything statutory and they are very aware of this and that nothing is tying me there, but they rely on me heavily to do the daily bookkeeping, mgmt accounts and budgets.