Retention benefits for the employees a turnaround cannot lose.
A turnaround depends on a small group of people who know the business and can execute. Losing them costs far more than most benefits savings. We help leadership design benefits for key employees that are targeted, affordable and defensible, while keeping the broader plan consistent.
Six ways to keep the people you cannot lose.
Executive Benefits
Benefits beyond the group plan for the people who matter most to the recovery.
Defined Employee Classes
Setting classes so different treatment is documented and permissible.
Cost of Turnover
What it costs to lose someone, so the case for retention is clear.
Return on Benefits
Whether the benefit changes people’s decision to stay.
Benchmark for Key Roles
How benefits for senior roles compare with the market.
Explaining the Offer
Clear communication so employees know what they have.
Structuring retention benefits so they hold up.
Targeted benefits for key people can be permissible, but they must be built carefully. Define the class by role or job, not by name, document the reason and apply the same terms to everyone in it. Some arrangements, such as additional benefits for highly compensated employees, raise nondiscrimination issues, so legal review matters.
Make the case in numbers. The cost of replacing a key leader, in recruiting, lost time and disruption, often exceeds what retention benefits cost. Then measure the effect: retention among the class, and responses in exit conversations, so leadership knows whether the benefit is working.
Questions about retention benefits.
Plain answers for HR, finance and deal teams.
Which Employees Count as Key Talent?
Those whose departure would slow the recovery: leaders, specialists and people who hold customer or operational knowledge.
Can We Give Key Employees Better Benefits?
Often yes, within carrier rules and applicable nondiscrimination requirements. Classes should be defined and documented.
What Kinds of Benefits Help Retain Key People?
Executive benefits such as supplemental disability or life, enhanced contributions and flexibility. The mix depends on what they value.
Will Other Employees Notice?
Often. Explain why some roles are treated differently and keep the criteria objective.
How Much Does Retention Benefits Cost?
Usually small relative to replacing someone. We price the options before you decide.
Do These Benefits Work Without Pay Changes?
Sometimes. They are not a substitute for fair pay, but can tip a decision.
What About Retention Bonuses?
They are a compensation matter for your counsel and advisors. In Chapter 11, retention payments to company insiders are tightly limited by statute. We cover the benefits side.
How Do We Keep This Confidential?
Limit the circle, and put the design in writing before communicating.
Is It Defensible to Lenders and the Board?
Yes, if it is targeted, documented and tied to the recovery plan.
Where Do We Begin With Retention Benefits?
Tell us who the key roles are and what the plan costs today. There is no cost and no obligation.
Can we offer a benefit to some employees and not others?
Sometimes, if classes are defined by legitimate business criteria and applied consistently, and the plan rules allow it. Have counsel review the structure.
How do we explain different treatment to other employees?
Honestly and briefly. Explain that certain roles have different arrangements and the reason, without disclosing individual terms.
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General information about retaining key employees through benefits, not legal or tax advice. Plan-specific questions belong with your counsel and tax advisor, and we will bring them in.
The Law Behind Retention Pay.
The laws named on this page link to the statute or regulation they come from. This is general information, not legal advice, and rules change, so check the current text and ask your counsel.
Limits on Insider Retention Pay (11 U.S.C. 503(c))
Bars retention payments to insiders of a bankrupt company unless the court finds specific conditions are met.
Related reading on key-employee benefits.
Keeping People in a Restructuring
The page this belongs to.
Our Transactions Section
The full section.
Executive Benefits Planning
Benefits designed for senior and key employees.
Protecting key people? Talk to us first.
We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.
The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents, two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
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