Many companies are looking for new and different tactics to attract top talent in today’s job market. If you are recruiting for an industry and position that is historically hard to fill, it can be difficult to find the right employee for the job. One of the many ways employers are trying to reel in candidates is by offering a sign-on bonus.
What is a Signing Bonus?
First, before we jump into the benefits, you should know what a sign-on bonus entails. Usually, it is a lump sum of money paid to an employee upon acceptance of a job offer. This bonus is given after they have passed background checks and performed preliminary paperwork. Signing bonuses are typically used to attract top talent and find candidates for harder-to-fill roles.
In some cases, signing bonuses are paid in increments as an employee hits different milestones in their time with the company. This can help ensure that they stay on. The employer can even require the worker to sign an agreement that if they leave before a certain date that they will need to pay the bonus back.
There are some drawbacks to offering a signing bonus. Some employees may accept the job simply because of the bonus and not because it is a good fit overall. It is possible that candidates may expect bonuses of this caliber every year they work for you. That being said, there are way more benefits to offering a sign-on bonus. Here are just a few.
Fill a Salary Gap
Sometimes there may be a gap between what you are able to offer and what the candidate is looking for in terms of salary. This is actually the number one reason many candidates turn down a job offer. Providing a sign-on bonus can help sweeten the deal for them. Although it is only paid once, it can help create more value for the candidate in terms of what you have to offer.
Help Cover Relocation Costs
If the candidate you are hoping to hire has to relocate for the job offering a signing bonus can help cover the cost of moving. This opens up more candidates to the position as well because you won’t be limiting yourself geographically. However, many candidates will worry about the cost of relocating. You may find someone more well-suited for the job by offering a bonus to help cover these costs.
Get Candidates to Accept Hard-to-Fill Positions
Certain industries have a harder time filling positions than others. You may even find your company has a harder time filling specific job roles within your organization. For these jobs, offering a signing bonus can help attract top talent to apply for the position. It shows the candidate that you are willing to invest in them and value them as an employee. It will also give you an advantage over your competition in the job market.
Work With Top Notch Personnel to Find Top Talent
Working with a staffing agency like Top Notch Personnel can help you facilitate and negotiate signing bonuses with potential candidates. Our firm is investing in clients’ and employees’ sign-on bonuses through the end of 2021. Learn more about how our recruiters can assist your organization.