Job Applicant QuestionsCategory: ApplicationWhy do companies offer signing bonuses?
Francis G Staff asked 7 years ago

While I was filling out job applications, I saw a few companies were offering bonuses if they hired you. Why do they do this? I’m all for more money, but it doesn’t make sense to me.

1 Answers
Ben Staff answered 7 years ago

Everyone likes extra money. Even having something small, say $500, will attract many more applicants than a typical job offer. So, when a company needs to fill a position quickly, offering a signing bonus creates a larger pool of applicants, and helps them better their chances of finding someone well qualified to fill the slot. Yes, it’s an extra up front cost for the company, but if they desperately need to hire someone, it actually saves them money by speeding up the process.