Should You Offer a Signing Bonus?


HR / General 104 Views 0

Whether you call it a hiring bonus, a signing bonus, or a sign-on bonus, the idea is the same: It’s a bonus offered to a job applicant to entice him or her to accept the position. It could be a flat dollar amount, or it may be a percent of the new salary, typically anywhere from 5%­­–25%.

This type of bonus can be paid upon hiring (as the name implies) or in installments, or it could, instead, be paid upon completion of x months or years—which acts as an incentive to stay on the job. When paid at hiring, a signing bonus may come with terms that require payback if the new employee leaves before a specified amount of time has passed.

Should You Offer a Signing Bonus? Here are the Benefits

Here are some of the benefits to offering a signing bonus:

  • It may be a way to match a candidate’s initial salary requirement while not keeping the full amount in the annual budget. This allows the organization to keep its salary budgets intact while still offering an enticement for a candidate who may be just out of reach otherwise.
  • It can be used to “sweeten the pot” for a candidate who is
Read from Compensation – HR Daily Advisor