When you’re struggling to lure in talented candidates who will bring your business into the future, a signing bonus can be an effective way of getting their attention. Now, some might say that’s overkill. But a sign-on bonus isn’t just for executives — it can come into play during any level of talent acquisition. Here’s what you need to know before you put your next offer on the table.
How Does a Signing Bonus Work?
The majority of companies — 74 percent, to be exact — give bonuses to at least some of their new hires, but amounts vary widely depending on the field. For an executive in the finance industry, you can expect six-figure signing bonuses, while for registered nurses, most bonuses will stay under $10,000. Some companies also give out smaller bonuses. Even a $500 check can make a difference.
To keep reading, click here: How a Signing Bonus Can Take Your Recruitment Efforts to the Next Level
I took a signing bonus in lieu of relocation once (because the company had no relocation policy), and it was a pleasant positive. Yet after starting the job and moving my family I kept the check in my wallet for a couple of months… because I was still interviewing and negotiating with a prestigious university in Nashville.
I was initially smiling when I read the eventual Nashville offer letter. Smiling segued to… stupefaction.
Although the Nashville job had a higher salary, I found the cost of living was comparably higher — negating that nominal advantage. The “relo” package had a maximum amount that _nominally_ matched my signing bonus check amount. Nominally: relo was strictly only reimbursement for IRS-approved items: at that time (2005) only actual city-to-city moving expenses — no temporary housing expenses, no house hunting assistance.
Why, I asked my prospective employer, only reimbursement and why only IRS-approved items?
Ah, he told me, they’d tried signing bonuses but been burned by very promising alien candidates collecting a signing check from them… and other employers serial short-order… then decamping for the home subcontinent copious cash in hand… beyond the reach of enraged employers.
I declined the prestigious offer, deposited my check, and purchased a house in Cincinnati. We’re still here. Now I only think of Nashville when I drive through it to visit the sandy beaches of Alabama.