Dear Seniors, I would like to know about retainer ship. Please guide me. SabalKumar
From India, Delhi
From India, Delhi
Dear Sabal,
Retainership is a form of employment which is for a particular/fixed period of time unlike the contractual assignees.
Usually it is project based. Suppose A company signs up a contract with B company for a specific period of time for rendering some service and B company requires (ex 100 employees for 1 year to do the job) then company A recruits employees on retainership basis for the particular term and if the agreement extends with B company the retainership automatically extends, in case the agreement term with B company ends then A company has a choice to use the service of the retainer in C company if he has a choice.
Employee working under retainership basis enjoy all the benefits of an on roll employee just that as the company itself is not certain of continued employment they are taken on project based usually.
From India, Thana
2Retainership is a form of employment which is for a particular/fixed period of time unlike the contractual assignees.
Usually it is project based. Suppose A company signs up a contract with B company for a specific period of time for rendering some service and B company requires (ex 100 employees for 1 year to do the job) then company A recruits employees on retainership basis for the particular term and if the agreement extends with B company the retainership automatically extends, in case the agreement term with B company ends then A company has a choice to use the service of the retainer in C company if he has a choice.
Employee working under retainership basis enjoy all the benefits of an on roll employee just that as the company itself is not certain of continued employment they are taken on project based usually.
From India, Thana
Usually, a retainer is the fixed component of a person's renumeration.
It is most common in sales, project management, law firms, general consultants etc...
Essentially what it means is this:
Let's assume you are a lawyer. I hire you on a retainer of Rs 1 Lac per month. What this means is that for the duration of our contract I will pay you Rs 1 Lac per month. And, in return, you will provide me with a certain amount of services (these are always determined and agreed upon prior to signing the contract). Let's say you may agree to write up to 8 letters, give me 2 x 1 hour face-to-face consultations etc... per month.
Now, this is what makes retainers interesting:
Whether or not I use you for the 8 letters and 2 consultations each month, I HAVE to pay you the Rs 1 Lac each month regardless. And, if in some months I use you for more than what we agreed to, then I pay you the balance over and above the retainer.
So, in a nutshell, a retainer is very much like a HOLDING FEE - especially for high net professional services.
In the case of sales, project management and similar professions it works fairly similarly. Why? Because if I hire a sales person at a package of Rs 45K per month, I may only have a retainer amount of Rs 20K while the remaining 25K will be linked to performance incentives etc... So, in this case, a retainer assumes the meaning of 'fixed component'. That is, it is the money I pay the sales person to 'RETAIN' their services.
So, in that sense whether it is the lawyer or the salesperson, I pay them a certain minimum amount to RETAIN their services. And, if I need them for more, or, if they perform over and above the required minimum, then I pay them additionally.
Hope this helped you.
From India, Gurgaon
It is most common in sales, project management, law firms, general consultants etc...
Essentially what it means is this:
Let's assume you are a lawyer. I hire you on a retainer of Rs 1 Lac per month. What this means is that for the duration of our contract I will pay you Rs 1 Lac per month. And, in return, you will provide me with a certain amount of services (these are always determined and agreed upon prior to signing the contract). Let's say you may agree to write up to 8 letters, give me 2 x 1 hour face-to-face consultations etc... per month.
Now, this is what makes retainers interesting:
Whether or not I use you for the 8 letters and 2 consultations each month, I HAVE to pay you the Rs 1 Lac each month regardless. And, if in some months I use you for more than what we agreed to, then I pay you the balance over and above the retainer.
So, in a nutshell, a retainer is very much like a HOLDING FEE - especially for high net professional services.
In the case of sales, project management and similar professions it works fairly similarly. Why? Because if I hire a sales person at a package of Rs 45K per month, I may only have a retainer amount of Rs 20K while the remaining 25K will be linked to performance incentives etc... So, in this case, a retainer assumes the meaning of 'fixed component'. That is, it is the money I pay the sales person to 'RETAIN' their services.
So, in that sense whether it is the lawyer or the salesperson, I pay them a certain minimum amount to RETAIN their services. And, if I need them for more, or, if they perform over and above the required minimum, then I pay them additionally.
Hope this helped you.
From India, Gurgaon
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