Score Big: Your Go-To Guide for Negotiating Sign-On Bonuses

Landing a job offer is exciting, but what if you could boost your overall compensation package with a sign-on bonus? Many companies are eager to sweeten the deal to attract top talent.  For example, to entice you to accept the new job and agree to a certain start date, you may incur losses on the sale of a home, or from walking away from unvested incentive compensation. A signing bonus is a creative way to help make you whole in situations like this.

If you’re not sure how to approach the conversation about a sign-on bonus, here are 5 key strategies to consider as you make your ask:

 -  Know the Market: Do a little research to see what’s standard in your industry—it’ll give you some extra pull in negotiations.

 ·         Show Your Worth: Be ready to explain what makes you a great fit for the role and how you’ll help the company succeed.

 ·         Be Enthusiastic: Express your commitment to the job and the company – for example, your willingness to relocate is a strong incentive to provide a signing bonus to help defray moving or relocation expenses above and beyond that what is provided for in the relocation policy.

 ·        Get Specific: When you ask for a signing bonus, be clear about the amount or range you’re looking for, and why. Back it up with your market research and qualifications.

 ·        Legal Check: It’s smart to review with an employment lawyer any bonus terms and parameters you want to present. Make sure you understand any conditions and specific legal clauses.

Generally, we recommend that you try to get a higher base salary rather than a signing bonus if it has to be an “either/or” situation.  That is because all other benefits are calculated based upon the base salary, and the signing bonus is a one-off.  That said, a signing bonus can still be an excellent tool to have at your disposal to improve your overall compensation opportunity in situations of salary compression or other make-whole situations.