I have multiple offers at hand after completing my engineering. A few of the companies are offering retention bonus in their compensation structure. What does it mean for a developer and how good or bad it is?
A retention bonus is a type of bonus that is paid to an employee in order to encourage them to stay with a company for a certain period of time. This period of time is typically longer than the employee’s normal contract, and the bonus is usually paid out in installments over the course of the extended contract.
There are both good and bad aspects to retention bonuses for developers. On the positive side, retention bonuses can provide a financial incentive for developers to stay with a company, which can be beneficial for both the developers and the company. Additionally, retention bonuses can help to ensure that a company’s development team is stable and has a low turnover rate. On the negative side, retention bonuses can create a sense of entitlement among developers, and can also be used as a way to keep developers from leaving a company even if they are unhappy with their current situation. Additionally, retention bonuses can be expensive for companies to provide, and may not always be effective in actually retaining employees.