Complete Story
05/10/2022
Use Caution With Signing Bonuses
A sign-on bonus can be a great benefit to offer potential hires to entice them to join your company. With the current workforce status and many companies and industries looking to hire new employees, this can help set your company apart from the others. Bonuses can range from a small monetary value to a percentage of annual wages. They can be paid in a lump sum, or in installments over the course of employment.
While this can be a great incentive to gain interest in the job and applicants, it can come with potential downsides.
Andrea Schlack, President of Printing Industries Credit Bureau, warned Graphic Media Alliance and other associations of a recent incident. The printing company in question was offering a $10,000 sign-on bonus for employees that were hired. The problem with this bonus, was it was offered up front. Once the employee signed the paperwork, they received their bonus. When the date arrived for the employee to start their employment, they never showed, nor could the company reach them in any capacity. They are now resorting to legal action to recoup their loss.
Don't let this company's story become yours. When considering implementing a sign-on bonus, make sure that the employee you are hiring is a good fit and going to stick around, and make sure to not offer the bonus up front before the employee reports to work. It would be a good idea to set a threshold for the new employee to reach before they receive their sign-on bonus, i.e. 30, 60, 90 days.
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