Signing Bonuses - Are You Entitled to One?
A signing bonus is a one-time, lump sum that companies will sometimes offer new employees up-front, often as an incentive to join. So as a candidate, why might you ask for a signing bonus, and how can you negotiate one?
If you’re looking for a slightly higher salary than what the new role can offer you, but the position is still attractive, a signing bonus can help bridge the gap.
Or perhaps the total package on offer is more heavily weighted toward bonus compensation than you would like, but if this isn’t guaranteed then getting some of this upfront is security in the meantime.
Further, there may be future merit increases promised with the role, but these usually happen once a year—so if you’re due for a pay raise just a few months after you join, you might not be entitled and could have to wait for more than a year.
It’s perfectly reasonable in all of these situations to ask for something to tide you over before you have the opportunity to prove your worth for a pay raise or earn your commission.
Some other reasons to justify a signing bonus include:
If you are walking away from stock options or RSUs that haven’t vested yet
If you would owe educational reimbursement to your previous employer by leaving before a certain date
If you are relocating for the role but there is no formal relocation package in place
If you’re leaving behind a significant bonus from your current role, i.e., by departing in the middle of the cycle
How do I ask for one?
It’s essential to consider a few things before asking for a signing bonus to give you the best chance of gaining this extra incentive without impacting the rest of your job offer or your relationship with your new manager.
Do your research – As with a salary, it’s worth finding out what is typical for the particular role and sector you are in. With a signing bonus, you should also look into whether the company is accustomed to paying them and what they usually look like. You should have the facts to back up your request. Don’t forget, an external recruiter can help you with this.
Choose the right time – Don’t do anything that could call the whole job offer into question. Make sure you have agreed on your salary (confirming there’s no room for an overall increase) and have a written offer on the table. Then think about how best to bring this up with your hiring manager.
Be flexible – It’s still important to think about the job package as a whole, not just the monetary benefits you’ll get right away. And remember, your focus should still be on the opportunity itself and whether it’s a good fit for you and your career – after all, most signing bonuses will come with a ‘claw back,’ meaning you’ll have to pay the money back if you end up choosing to leave the company within the first year. If a signing bonus isn’t possible, can anything else be negotiated, such as funding for a training course, professional accreditation, or more vacation?
Signing bonuses aren’t quite as simple to negotiate as a salary. However, they can still be an important part of the job offer, so you should consider how to approach them, especially if it’s a job you really want and the money on offer is close to what you need to say yes.