What Is a Signing Bonus

You are looking at multiple job offers, and under one of the perks of one of them you see the phrase “signing bonus.” Although you know that a bonus is good, you may not understand what word “signing” means in this context. If that’s the case, then we have got you covered!

What Is a Signing Bonus?

A signing bonus is an award amount that goes directly to a worker who signs on to a new job. A signing bonus is typically a one-time incentive that companies use to make their job offer more attractive. A signing bonus assists a company in some ways:

·         May make their offer more attractive than another company’s offer

·         Is only a one-time bonus rather than a permanent salary bonus

·         Can be a bonus that only takes effect after a certain amount of time

Is a Signing Bonus Immediate?

Although all signing bonuses are given to the candidate immediately after they sign on to the job, when it is actually the employee’s bonus is entirely dependent on the contract that someone signs. In some cases, the bonus is immediately gifted to the new employee at the time of their taking the offer. However, other companies may set up a bonus that goes with the first paycheck that the employee earns. Yet, some signing bonuses can be taken back by a company if the person leaves or is fired before their probationary period. Therefore, a signing bonus may not stay in the candidate possession if they leave the company before a certain date.

Although signing bonuses are a perk, creating an investment plan can lead to a much bigger payday. If you are interested in investing but don’t know where to start, check out our website for more information!