retentieverlening

Retentieverlening is a term used in Dutch financial and human resources contexts to describe a loan arrangement designed to improve employee retention. In a retentieverlening, a lender—typically an employer, a corporate fund, or a financial institution—provides a sum of money to an employee with terms that link repayment to continued employment or to reaching retention milestones. The principal and interest may be deferred or structured as a service-based loan, with repayments often contingent on the employee remaining with the organization for a defined period or achieving performance targets.

Origin and scope: The word combines retention (retentie) and lending (verlening). While not part of a formal, universally standardized framework, the concept is used in corporate HR policies and some public-sector programs to reduce turnover and stabilize critical roles.

Mechanics and terms: Common features include a defined loan amount, fixed or variable interest, a vesting period, and conditions for early repayment or cancellation if employment ends prematurely. Some models convert the loan into a retention benefit, often treated as compensation or a taxable benefit; others require immediate repayment upon termination.

Benefits and criticisms: Proponents argue that retentieverlening can help attract and retain talent in tight labor markets and align incentives with long-term organizational goals. Critics point to potential coercion, uneven access, tax implications, and risk to employees if job prospects change.

Related concepts: retention bonuses, sign-on loans, earn-outs, and other retention tools used by employers and public bodies.