Signing bonuses were offer letter staples before you started college. Then came 9/11 and the following recession, and starting bonuses became more and more rare.
Fortunately, just in time for graduation, signing bonuses are starting to creep back into compensation packages – but don’t get greedy just yet. The decision to offer a sign-on bonus often boils down to supply and demand. Working in a hot industry or an in-demand position (think nursing) can boost a candidate’s likelihood of getting a bonus upfront.
To improve your chances of pocketing a signing bonus, heed the following tips:
1. Know what to expect.
Research the company and your industry to see whether your position or company frequently awards hiring bonuses. The Internet, industry contacts and current workers at your future employer are valuable sources of information.
2. Delay the money talk until after you get an offer.
Wait until you have a written job offer before negotiating a sign-on bonus. Asking too early could make you appear difficult or greedy.
3. Be upfront.
Employers are more likely to offer a sign-on bonus if accepting the offer would cause a candidate financial hardship. If you would have to forgo your year-end bonus or triple your commuting costs, say so.
4. Make sure you understand the terms.
Employers are increasingly tying a longevity clause to hiring bonuses. Find out if you will need to pay back part or all of the signing bonus if you leave before a specified period of time.
5. Remember that a signing bonus is a one-time deal.
If a company is offering a salary that seems too low, a signing bonus will only make up the difference for one year. Negotiating a more reasonable salary will have a long-term impact.
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