Thursday, April 23, 2009

Retention Bonuses

The economy is bad. Unemployment is high. Higly skilled professional workers are settling for unskilled work just to make ends meet. So why then are some companies paying retention bonuses to the tune of millions of dollars? I can understand wanting to reward loyal hardworking employees that are helping your company through the difficult times. But should you bankrupt the company to do so? Paying bonues in time of plenty is all well and good. But why would you pay $13.3 million in bonuses to 703 employees on the same day you lay off 53 of their co-workers?

I just wonder what these companies think employees will do if they aren't paid retention bonuses. Quit and join the millions of unemployed?