Sign On Bonuses: Are They Still Common?
Sign on bonuses are a great recruitment incentive for new employees. Are sign on bonuses still common? Learn in this guide.
Companies often compete with one another to nab the highest-skilled workers in their field. However, it can be difficult to stand out against the competition when your products are similar.
One of the tips you’ll see in any hiring guide is to offer some kind of incentive for new hires. Some companies choose to make a gift basket with branded office accessories. Others opt to utilize the employee sign on bonus.
But are sign on bonuses still a common occurrence, and how are they used in practice?
Purpose of Sign On Bonuses
A sign on bonus is meant to show an employee that a company really wants to hire them. It incentivizes them to accept the job offer and ignore others they may have received. This is mostly utilized when hiring for a high-skill position in which there aren’t many applicants.
The amount of the sign on bonus will depend on the industry and the candidate. However, you can expect something in the thousands of dollars.
Keep in mind that sign on bonuses are not the same as other employee bonuses. An employee bonus is given as a reward for good work ethic and performance. The sign on bonus is a one-time offering that may have strings attached.
Risks of an Employee Sign on Bonus
On the surface, an employee sign on bonus seems like a win-win situation. You get extra money and a job, while the company you’re with gets a skilled worker. However, rarely are these bonuses without some kind of return on investment.
In most cases, a signing bonus requires that you pay back the company under certain circumstances.
The terms may state that you must return the bonus if your position is terminated or you leave the company before a certain date. It’s possible that they try to lock you in for a year or two under that condition.
Industries That Still Use Them
The employee sign on bonus has become more popular in recent years due to the number of people quitting their positions. There’s a vacuum that needs to be filled, and that’s what incentives are for.
The top occupational sectors that still advertise signing bonuses include nursing, driving, dental, and veterinary. In some cases, workers have managed to negotiate for singing bonuses or higher hourly wages due to the need for new employees.
However, sign on bonuses are less common in workplaces that have more hiring options. A union employee may also be unable to receive a bonus without permission from the union.
Improve Your Employee Onboarding Process
Sign on bonuses are one way to improve your employee recruiting numbers. Everyone loves a financial incentive, and it also encourages them to stick around. As long as you work repayment into their contract, you won’t have to worry about them running off with the check.
JSK Recruiting can help with employment in the supply chain and manufacturing industries. Individuals can search for jobs while companies can find the ideal candidates. Contact us to learn more.
