Posted by Dave Lorenzo - Business Coach

Careerbuilder has five tips for us on how to get a signing bonus.  They are:

1. Know what to expect.
Research the company and your industry to see whether your position or company frequently awards hiring bonuses. The Internet, industry contacts and current workers at your future employer are valuable sources of information.

2. Delay the money talk until after you get an offer. Wait until you have a written job offer before negotiating a sign-on bonus. Asking too early could make you appear difficult or greedy.

3. Be upfront. Employers are more likely to offer a sign-on bonus if accepting the offer would cause a candidate financial hardship. If you would have to forgo your year-end bonus or triple your commuting costs, say so.

4. Make sure you understand the terms.
Employers are increasingly tying a longevity clause to hiring bonuses. Find out if you will need to pay back part or all of the signing bonus if you leave before a specified period of time.

5. Remember that a signing bonus is a one-time deal.
If a company is offering a salary that seems too low, a signing bonus will only make up the difference for one year. Negotiating a more reasonable salary will have a long-term impact.

There are a few key points missing from this list.

First: You must offer a “dollarized” list of what you are going to accomplish.  In other words, detail the value you will be bringing.  The idea is to show the firm the bargain they are getting in hiring you.

Next: Show the hiring company how they will be saving money by hiring you quickly.  Provide tangible evidence of your ability to provide value quickly.  For example;  If you have an established book of business, show the hiring manager the value of the clients you could bring to your new firm IMMEDIATELY.  This will make the signing bonus seem like an “advance payment” rather than a gift.

Finally: Don’t hesitate to put some “skin in the game”.  In other words, tie the signing bonus to future performance.  Offer to pay the bonus back if you do not achieve a certain performance criteria.  While most employers will never take you up on this offer, it goes a long way toward building up an environment of good will.

Filed under: Salary
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