Companies and businesses use to catch the attention of job seekers and top talents through sign-on bonuses. But, what exactly are sign-on bonuses and should you consider them if you find a job opening that offers them?
Here’s a brief guide on what you need to know about sign-on bonuses:
What is a Sign-On Bonus?
A sign-on bonus is a monetary incentive offered to job candidates by companies to entice them to accept the job offer. It can be made as a one-time payment, stock option, or an added instalment payment to your salary.
When Are They Mostly Offered?
A company can offer a job seeker or a top talent a sign-on bonus if you are still considering other offers and get you to accept their offer. It is also provided by companies that need fast signups to fill multiple vacancies.
Which Industries Offer Sign-On Bonuses?
Almost every industry can offer sign-on bonuses to catch the attention of top talent. However, companies often provide it for top candidates applying for management or executive positions. Other companies offer sign-on bonuses for new professionals with a suitable skill set that will make them a valuable asset to the company.
Why Do Employers Offer It?
Employers have various reasons why they offer sign-on bonuses, and the three most common reasons are as follows:
- To prevent their competitors from getting the best talent for the positions being filled.
- To guarantee that the salary bracket within the company is maintained
- To make up for the bonuses, the worker would lose if they took the other offers.
What Should I Consider When Taking On Sign-On Bonuses?
- Is The Company Often Offering The Sign-On Bonus?
It is important to note that not all companies may offer sign-on bonuses to all, especially for newcomers. Do your research beforehand to determine if the company offers it to new employees or only for experienced ones. If you know someone from the company, ask them about how the company handles their hiring process.
- What Is In The Fine Print?
Before signing anything, make sure you understand the fine print of the position, as companies may pay some sign-on bonuses in an instalment term, or there is a provisional period before you can get it. It would help if you also looked at what other benefits are offered when you sign up.
- Can You Negotiate For The Sign-On Bonus?
You can negotiate for a better sign-on bonus so the company can get you as their new employee. You can also negotiate for a higher base salary or additional benefits. Just remember that not all companies can accommodate your request, so do your research first before attempting to negotiate.
Should You Go For It?
If you found a job offer that offers sign-on bonuses or you are offered one, make sure that you read the terms carefully. It should also be a position that you want to pursue, and it has the opportunities and benefits you are looking for for your career goals. You should also look at the other offers and see which one is best for you in the long run.
Sign-on bonuses boost the appeal of jobs to any job seeker who wants to earn more. But, before you sign up, make sure that the position is something you want to do and that it will help you with your career goals. If it is the job you want and you will get the bonus in the setup you want, go for the position. If not, there are other positions in the market for you to consider. Do your research and pick the one that will help you in the long run.
Here are some more articles to help you to score that first day of work:
What To Do When You Are Overwhelmed At Your New Job?
How to Win Your New Colleagues Over in Your New Job?
Moving On To A New Job