A retention bonus is a financial incentive offered by employers to encourage employees to stay with the company for a specified period. This bonus is often used during times of organizational change, such as mergers or layoffs, to retain key talent and maintain stability within the workforce. Typically, retention bonuses are paid out after the employee has completed the agreed-upon duration of service. The amount can vary based on the employee's role, the company's financial situation, and the overall job market. This strategy helps companies minimize turnover and retain valuable skills and knowledge within their teams.