Have you been offered a sign-on bonus for your new job? Sign-on bonuses or signing bonuses are great incentives for many employees. But you may be unclear about a few things, including what exactly a sign-on bonus is and when it gets paid. Read on as we answer your frequently asked questions regarding sign-on bonuses, including the most important one of all: when do you get it?
What’s a signing bonus?
A signing bonus is a special bonus that employers give a new hire who has accepted their job offer. This bonus comes in addition to the employee’s forthcoming salary, as well as any other types of bonuses or commission. The exact amount of a signing bonus can vary greatly; it may be $1,000, or it may be $50,000 for the highest-level executives. It all depends on the type of position and the company itself.
Sign-on bonuses don’t always take the form of a single check (although they often do). Sometimes, a signing bonus is given in multiple payments over a period of time. It’s also possible for companies to offer stock options as a form of a signing bonus instead of cash.
Why do employers offer signing bonuses?
You may be wondering why exactly employers offer signing bonuses. The answer is simple: it’s an incentive for employees to accept the job offer, and it can be quite a powerful one. It also allows employers to negotiate a bit with salary requirements, as an employee may be willing to accept a slightly lower salary if they receive a certain figure in the form of a signing bonus.
Signing bonuses may also be used as a way to help the employee pay for relocation if they’re moving in from out of state. They’re also frequently used when hiring for specialized or hard-to-fill positions. And as mentioned above, high-level executives are often given signing bonuses when they join a company.
When are signing bonuses paid?
The ultimate question: do you get your signing bonus when you start the job? The answer is… maybe. Most of the time, a signing bonus is paid shortly after signing on with the company. That may be right after signing the formal paperwork, or along with the first paycheck. Sometimes, the signing bonus is paid after the employee has worked at the company for a set period, such as three or six months. And some signing bonuses are doled out in increments over time.
Note that you may have to pay back your signing bonus if you leave the company within a specified amount of time. Usually, you’ll need to remain at the company for six months or a year before you can leave without paying the bonus back.
Looking for a position that will offer you a signing bonus? We can help with that. Contact the experts at Axiom Staffing Group today.