Sign-On Bonus
A Sign-On Bonus is a financial incentive offered by an employer to a prospective employee as an enticement to accept a job offer. This bonus is typically paid in a lump sum either upon starting employment or within a specified period after hire. Sign-on bonuses are often used to attract candidates for hard-to-fill positions or to compete with other employers in a tight labor market.
Examples:
- A tech company offers a $10,000 sign-on bonus to software engineers who accept a position within a month of receiving an offer.
- A healthcare organization provides a $5,000 sign-on bonus to registered nurses who commit to a two-year contract.
Cases:
- Company A struggles to fill a specialized engineering role, so they offer a sign-on bonus to make the position more attractive.
- A startup seeks to recruit experienced sales personnel, using sign-on bonuses to incentivize candidates away from established firms.