Published: 08 August 2024
Retaining key acquired employees after an acquisition is critical to the transaction’s success, yet most executive leaders surveyed do not use retention strategies consistently. This research provides recommendations for key employee categories and negotiation tactics for retention bonus values.
Fewer than half of surveyed organizations are frequently using special inducements to retain key acquired employees.
The use of cash-based retention bonuses is the most common form of special inducement, with 52% of surveyed organizations reporting that they frequently or always use this method when providing special inducements.
There is a wide range of retention bonus values. Survey respondents indicated that most are provided between a 10% to 75% range of the employee’s base salary.
The average duration for paying out cash-based employee retention bonuses is nearly two years.
Retain key acquired employees as a foundational element of mergers and acquisitions
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