Retention bonsuses

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BE20 Driver
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Retention bonsuses

#1 Post by BE20 Driver » Mon Oct 09, 2017 9:28 am

Seems the fecal matter is hitting the fan over at Ryan Air. 12000 Euro bonuses for Captains, 6000 for FO's.

I wonder if there wasn't a mass exodus there whether any of these improvements would have been offered? I somehow think that 6000/12000 probably isn't enough.

Signing bonuses and retention bonuses are starting to make their way into the 703/704 world. Is it a matter of time until they get to the airlines here too? We are shaping up for a real battle for qualified crews.
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skypirate88
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Re: Retention bonsuses

#2 Post by skypirate88 » Mon Oct 09, 2017 9:36 am

I doubt we will see retention bonuses at AC or WestJet, but we could start seeing them at the various regional carriers. Porter has already got the ball rolling, and American carriers are upping the pay as well. I think it is only a matter of time before we start seeing improvements up here.
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zipper
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Re: Retention bonsuses

#3 Post by zipper » Mon Oct 16, 2017 5:21 am

skypirate88 wrote: Porter has already got the ball rolling, and American carriers are upping the pay as well. I think it is only a matter of time before we start seeing improvements up here.
Retention or signing?
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Re: Retention bonsuses

#4 Post by iflyroads » Mon Oct 16, 2017 5:39 am

zipper wrote:
skypirate88 wrote: Porter has already got the ball rolling, and American carriers are upping the pay as well. I think it is only a matter of time before we start seeing improvements up here.
Retention or signing?

Retention. 3 months of your salary (at that that time) as a bonus after 2 years
or
6 months of your salary (at that time) after 3 years of service
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photofly
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Re: Retention bonsuses

#5 Post by photofly » Mon Oct 16, 2017 6:35 am

Mathematically, a two year retention bonus is little different to a two year bond.
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Re: Retention bonsuses

#6 Post by FAD3C » Mon Oct 16, 2017 7:47 am

BE20 Driver wrote:Signing bonuses and retention bonuses are starting to make their way into the 703/704 world. Is it a matter of time until they get to the airlines here too? We are shaping up for a real battle for qualified crews.
And where exactly is this happening here in Canada?
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Re: Retention bonsuses

#7 Post by bobcaygeon » Mon Oct 16, 2017 8:27 am

photofly wrote:Mathematically, a two year retention bonus is little different to a two year bond.
Really??? If the wages haven't gone down to compensate for it then how so?

unlike a bond many, many industries use retention bonuses and performance bonuses. Jazz used to pay out a small bonus if the company's OTP met AC's requirements. (Maybe they still do)

Some people are never happy so why even try...
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Re: Retention bonsuses

#8 Post by bobcaygeon » Mon Oct 16, 2017 8:28 am

FAD3C wrote:
BE20 Driver wrote:Signing bonuses and retention bonuses are starting to make their way into the 703/704 world. Is it a matter of time until they get to the airlines here too? We are shaping up for a real battle for qualified crews.
And where exactly is this happening here in Canada?
Air Bravo I believe.
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Re: Retention bonsuses

#9 Post by BE20 Driver » Mon Oct 16, 2017 8:44 pm

photofly wrote:Mathematically, a two year retention bonus is little different to a two year bond.

What is the goal? Receive money for the corporation or keep people longer? I'd argue right now that the goal has to be keeping people over funding someone's training.

A place I used to work paid a salary of $45000 ten years ago (incidentally it was the same salary they were offering 15 years before that too but that's a whole other issue.) The training bond used to be close to $15,000. Most people left after two years once their bond expired, even back then. If someone left after 1 year, the company was out $7500 in training costs. Some companies chase people. Most don't. True cost to the company for that employee is $52500.

I would suggest paying a salary of $42,500 ($100 less per pay cheque) and a $7,500 retention bonus every year. Cost in year 1: $50,000. I'll tell you that I'd stick around for $7500 in my jeans at the end of the year. Same in year 2. Being that it's cheaper to retrain a current pilot than to hire someone offer a bigger bonus for staying longer. If my 3 year bonus was $10,000 and I was less than 6 months away from $10k, I'd probably stick it out a while longer.

Bonds have always been "the beatings will continue until the morale improves" type of approach. Leadership [bonuses]: The art of getting someone to do what you want them to do but making them think it was their idea.
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