What is a Signing Bonus?

Signing bonus or sign-on bonus is an economic term. Also translated as a signing fee, is a sum of money paid by the company to new employees as an incentive to join.

Signing bonus

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Signing bonus or sign-on bonus is an economic term. Also translated as a signing fee, is a sum of money paid by the company to new employees as an incentive to join.

Introduction

Signing bonuses are for full-time employees only, not temporary employees or interns. Signing bonuses are often used as a way to make pay packages (pay packages) more attractive to employees, such as when the annual salary may be lower than the employee's expectations. Because signing bonuses are paid in one lump, this reduces the company's risk: if employees fail to meet expected requirements, the company does not have to pay high salaries. Signing bonuses are usually used for professional sports and to hire fresh graduates. ^[1]