Explain the advantages and disadvantages of a partial retention program to the Balut Corporation.

Colorado Technical University | FINC330 Risk Management | Colorado Technical University

Balut Corporation can retain top employees with a partial retention programme. This allows them to keep their key staff without spending large upfront on benefits and salary. Partial retention programs encourage employee loyalty because they recognize their worth and offer incentives to stay with the company even when employees leave. Balut Corporation is able to retain its existing workers and reduce turnover costs. This plan can also help save money and time when training new employees.

Partially retained programs have their disadvantages. For example, employees expect payments when they meet certain milestones. This can put pressure on finances in times of market decline or when growth isn’t sufficient to sustain it. This plan may be viewed negatively by employees who feel like they are being bought rather than being given natural rewards such as promotions or bonuses.

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