Retention Bonus help

stuart2022

Hi I need help i'm working at a factory at the moment with the potential of 75 redundancies the company has approximately 493 employees across the uk we have been asked to come up with a Retention Bonus in the aim of keeping key/skilled workers till the end of factory closure. The company have not not put forward a offer its up to us to do this. I'm looking for a fair Retention bonus figure to present to my company and evidence as to how this figure has derived to especially comparing to similar size companies 
Many thanks.

getmore4less

They don't even have to do a retention scheme  they can phase the redundancies if they wanted or have people work extended notice periods if they want to do it all at once

That can stop you getting too greedy

If the redundancy payouts are not that good then people might just leave to get another job anyway and give up redundancy because if they stay unless there are loads of job going last out might find they have all gone
That time/risk needs compensating

if the best people are known in the industry they may be able to get new jobs on extended start dates.

What are the likely timescales and is there any chance of alternative employment at other sites?

MY starting point would be full PILON on termination, for the longer serving that's 12weeks wages

(retention in any form is taxable unless carefully constructed as redundancy payment)

stuart2022

Hi thanks for your reply get more for less.
 The company have indicated a retention Bonus route as well as redundancy pay on top, redundancy  will be coming in stages from end of June to next February 2022 the factory will be shutting so they wont be extending any contracts we have a real mix of long serving people to people that are short of the 2 years statutory redundancy pay so wont receive anything. Speaking to people who have been at the company for a short to medium period are happy to forfeit there statutory redundancy pay but a retention bonus might be enough to persuade people otherwise The majority of the jobs are skilled and take years to perfect so its imperative we keep as many staff till closure.
Some people will be relocating to another factory but will still leave approximately  75 staff redundant.
Thanks I have not come across Full Pilon I Will suggest this but I think the company are looking more towards the line of keeping staff till the very.

stuart2022

keeping staff to the very end I meant to say.

GrumpyDil

Hm. Several years ago a company I worked with paid a retention bonus of 25% of monthly salary from the date that redundancies were formally announced until the time we left to encourage staff to stay. 

Thrugelmir

One inducement that I've encountered in the past. Was a week's pay for ever month that an employees services are required for, i.e. to a predetermined leaving date. Enabled a smooth transition to be completed without fuss. 

stuart2022

That's great help Thrugelmir  and GrumpyDil thanks I've been asked to look at companies a similar size in staff roughly Could you tell me what size companies where they and what field of business where they in manufacturing, retail etc that would help even more thanks.

getmore4less

One obvious thing to do is get the employee reps(with 75 there needs to be some or union) to ask all the employees what would be an incentive to stay.

This could be big/small meetings to get a feel what might be needed.
if the redundancy payout was generous enough people will stay no need for extra.

stuart2022

Yes I've been chosen as one of the reps and we have another 7 reps unfortunately no union in our work place.
The Company will only give Statutory Redundancy as in line with the UK government, we have asked if they would move on this but to no avail. Some long serving employees (i.e. 40 years) will stay for the redundancy to get the full 20 year package, but some wont get any, because of the 2 year minimum requirement to qualify. The redundancy package is therefore not for everyone and the incentive no where enough to keep the staff until closure.
Aim of the Company is to retain as many skilled workers until closure or no longer needed.
The Company wants a plan in place to retain all skilled people and we need to be consistent with giving incentives throughout all employees, the biggest problem is, if we ask the Company for something, we need to back it up on how we derived with this figure. We need examples or evidence primarily to similar size company 450 and sector manufacturing.