Lets talk sign-on bonuses! Would you be more likely to join a company if they offered you a sign-on bonus? Research by global recruitment specialists “Robert Half” found more than 6 out of 10 employers in industries including tech, finance and business were offering signing bonuses in 2022.
Competition for top talent is fierce, a sign-on bonus can be an effective way to convince a highly sought-after candidate to choose you. This is no surprise to us as we know firsthand that Employers are under so much pressure to diversify how they reward talent as skilled candidates receive multiple job offers, generous salaries and counteroffers.
A sign-on bonus is a one-off financial compensation paid to a new employee when starting within a new organisation. Generally, they are offered to mid-level and senior-level employees, rather than entry-level employees. Many employers are using sign-on bonuses to cover any bonuses a candidate might lose if they’re joining outside mid-year to end of year reviews. They’re also increasingly common when employers can’t meet an individual’s salary expectations.
The firms research shows some bonuses are paid in increments or come with repayment requirements if an employee leaves the company prematurely. There is no specific rule regarding the “amount”, but usually a sign-on bonus for employees at mid or senior level is around 20% of the agreed gross annual salary. If you are trying to compensate for a missed annual bonus, that amount can be further negotiated until both parties are satisfied.