Increases & Changes
Sign-on bonus
Also called: signing bonus, hiring bonus
A one-time payment offered to new hires as an inducement to accept an offer.
Sign-on bonuses are one-time payments given to new employees, typically paid within 30 days of start date. They're used to:
- Replace forfeited equity or unpaid bonus at the candidate's prior employer (most common)
- Close a base-salary gap when posted pay can't go higher
- Compete for hot talent in tight markets
- Cover relocation without putting it on a separate budget line
Most sign-on bonuses are subject to a clawback provision — repay if you leave within 12 months. Survey data on sign-on bonus prevalence and amounts is typically reported separately from the regular comp data, often in pay-practices surveys.