As The Economy Continues To Grow And The Challenges Of Recruiting Top Talent Remains, A Sign-On Bonus Could Be Just What Is Needed To Get The Candidate A Company Desires
Sign-On Bonuses Are Back
The purpose of a sign-on bonus is to lure top performers who possesses special skill sets or experience a company requires. For years this added incentive has been very successful for recruiting senior level executives as well as professionals in particular industries to include professional services, healthcare (nurses), technology (especially women and software developers) and financial services. But sign-on bonuses are coming back strong and are used for all levels of recruiting. Just last week Wells Fargo announced plans to sweeten recruitment bonuses to lure new advisers. Sign-on bonuses can be just what is needed to land a high potential candidate in this very challenging recruiting environment. This type of bonus may be the incentive or an inducement to get a candidate to say "yes" to the job.
Sign-on bonuses don't necessarily need to be huge when enticing someone to join your company. Unfortunatatley for some companies and roles, companies may not have much of a choice other than offering one. For example, when a candidate's acceptance is critical and the need to do whatever it takes to get the candidate on-board, offering a sign-on could get the job done. But the size of the bonus can vary. According to an article in HR Magazine, the average amount of these bonuses ranges between 5-20% of a candidates base salary unless it is used for relocation expenses or a way to compensate a professional for money that may be left behind such as a bonus, commission, vacation or raise. Most of the time these bonuses are good for each party.
A Sign-On Bonus Not For Everyone
As we all know, a sign-on bonus is an expense for corporations therefore companies try to refrain from having to offer one, unless it is truly needed. Of course offering a sign-on bonus can motivate a professional to choose one company over another, but company's need to be sure it is necessary before offering one. Before offering a sign-on bonus to potential candidates, hiring managers as well as recruiters need to seriously analyze the situation, the competition, the job market, and of course the candidate to determine whether a sign-on bonus is necessary before moving forward with one.
Sign-On Bonuses Can Be Well Worth The Cost
Sign-on bonuses have been known to build trust, loyalty and can create long-term positive effects for employees who received one. Those who are offered a sign-on bonus often feel more committed and have a desire to do more. These candidates feel the company went the extra mile for them and they need to do the same.