Negotiate a Signing Bonus at Your New Job
When you’re offered a new job, it’s normal to feel ecstatic. After all, you’ve worked hard to get to this point in your career and you deserve it. But before you sign on the dotted line, there’s one more important thing to consider: your signing bonus.
A signing bonus (or sign on bonus) is a lump sum of money that is paid to you when you start your new job. It is typically used as a way to entice top talent to join a company. If you’re lucky enough to be in a position to negotiate a signing bonus, there are a few things you should keep in mind.
The EMPLOYER PERSPECTIVE
There are a number of reasons employers will extend a pre-hire bonus, sometimes called a signing bonus or sign-on bonus.
- In a competitive market employers may use a signing bonus to attract new talent.
- A signing bonus is a great way to compensate a new hire for benefits or commissions that the new employee is walking away from. HIring sales people mid-quarter or executives mid-year can often be made easier with a signing bonus.
- A one-time signing bonus can meet the candidate’s salary expectations for year-one. In this case it incentivises the new hire to perform well to make up the difference in year two by achieving bonus potential or getting an increase.
- A sign-on bonus can be an incentive for a new employee to stay with a company for a certain period of time after accepting the position. In most cases there is a one-year period in which they are required to pay back the bonus should they leave the company.
WAIT TILL YOU GET THE OFFER
This may sound like common sense but…
Don’t ask for your bonus before you get an offer letter. It is hard to negotiate without the offer and it could hurt your chances (or the employer could bake it into the offer.)You’ll be in a better position to know what to negotiate for once the offer is clear; base, benefits, insurance, vacation time, bonus potential, etc…

DO YOUR RESEARCH
Before you even start negotiations, it’s important that you do your research. Knowing what the going rate is for your position will give you a good starting point for negotiations. You can use salary databases like Glassdoor or PayScale to get an idea of what other people in your position are making.
KNOW YOUR WORTH
In addition to knowing the going rate for your position, you should also have a good understanding of your own worth. Think about the skills and experience that you bring to the table and how they will benefit the company. This will help you confidently negotiate for the salary and benefits that you deserve.
Look through the following and take some notes for any conversations your request for a signing bonus initiates:
- Years of job/industry experience:
- Education
- Skills
- Licenses and certifications
- Managing/leadership experience
BE SPECIFIC ABOUT YOUR NUMBER
- Decide on the minimum number that will work for you.
- Ask for more.
What you ask for at first is rarely what you’ll end up getting as they will likely counter offer. Most employers expect you to negotiate.
SHOW YOUR CARDS
Most companies negotiate in good faith, you should too. Signing bonuses, or sign-on bonuses are used in some very specific circumstances in most cases. They can be used to gross up your salary expectations, to make up for commissions or bonuses lost due to timing, or to cover a small relocation or company changing expense. If you are clear about your situation with your future employer about why you are asking for this offer incentive you may be pleasantly surprised.
BE PREPARED TO COMPROMISE
Remember that negotiation is a two-way street. While it’s important that you advocate for yourself, be prepared to compromise in order to reach an agreement that works for both parties. For example, if you’re looking for a higher salary than what’s being offered, you may be able to negotiate more vacation days instead.
Another simple tactic that can work is to ask for a guaranteed bonus of 100% (in situations where you will earn one) in the first year, this may work for them and will get you closer to your target salary.If you have an offer in hand, congratulations! But before you sign on the dotted line, be sure to negotiate a signing bonus that meets your needs. With a little research and preparation, you can confidently ask for—and get—the compensation package that you deserve.
For more tips on negotiating your job offer check out this article: How to Negotiate Your Salary After the Job Offer.

EVERYTHING YOU EVER WANTED TO KNOW ABOUT SIGN ON BONUSES (BUT WERE AFRAID TO ASK THE HIRING MANAGER)...
What is a reasonable signing bonus?
The amount of a signing bonus can vary greatly, depending on the company and how competitive you are as an applicant. Generally speaking, it is common for companies to offer signing bonuses that range from 5-20% of the first year salary. However, some employers may offer larger amounts depending on the position and the competition for the role.
Employers offer signing bonuses to make up for commissions lost due to the timing of the job offer so many in Sales or Client Manager ask for a signing bonus to make them whole for the year in which they start. In these cases the typical signing bonus will match lost commissions (and may require some proof be shown to the hiring manager.
In other, similar, cases a more senior hire may ask for a signing bonus to make up for the loss of an expected bonus and the one-time payment will be negotiated in that amount to make up for it. In these situations the bonus amount will be based on that amount.
What should I include in a request for a signing bonus?
When requesting a signing bonus, it is important to be specific about what you are asking for. You should provide details about why the bonus is necessary and how it will benefit both you and the company. Furthermore, you should be sure to provide data that supports your case such as your years of experience, education level, skillset and any certifications or licenses you may possess.
When should I ask for a signing bonus?
It is best to wait until after you have been offered a job before asking for a signing bonus. At this point, be sure to weigh the pros and cons of accepting the offer before making your request. Additionally, it is important to have your salary and benefits package in place before making any requests for a signing bonus. This will allow you to have a clear understanding of the overall compensation package being offered to you.
What other tips should I consider when negotiating my signing bonus?
When negotiating your signing bonus, it is important to remember that negotiation is a two-way street. Be prepared to compromise in order to reach an agreement that works for both parties. Additionally, it is important to be sure to document any agreements made in order to avoid any potential disputes down the line. Finally, be sure to take your time when negotiating and don’t rush into a decision before fully understanding the implications of what you are agreeing to and having considered a fair bonus amount.
Can you negotiate a signing bonus?
Yes, you can negotiate a signing bonus. It is important to remember that a signing bonus is simply one part of the overall compensation package being offered to you. Therefore, when negotiating a signing bonus, it is important to also negotiate your salary and benefits package in order to ensure that you are getting the best overall package for your needs.
Additionally, it is important to be sure to document any agreements made in order to avoid any potential disputes down the line. With a little research and preparation, you can confidently ask for—and get—the compensation package that you deserve.
Are signing bonuses paid up front?
Signing bonuses can be paid up front or over a period of time. It is important to discuss with the employer exactly how they intend to pay out the bonus. Depending on the company, signing bonuses may be paid in one lump sum or over a period of time such as monthly installments. It is also important to confirm if any taxes will be taken out of the bonus before it is paid to you. Finally, be sure to take your time when negotiating and don’t rush into a decision before fully understanding the implications of what the signing bonus entails.
With a little research and preparation, you can confidently request the compensation package that you deserve. With a little research and preparation, you can confidently negotiate for the best signing bonus possible.
Is it better to have a signing bonus or salary increase?
The answer to this question depends on your individual needs. Generally speaking, a signing bonus can be beneficial in the short-term as it provides immediate financial relief. However, a salary increase can have long-term benefits and may be a greater financial incentive as it increases your income on an ongoing basis.
It is important to do your homework and understand the pros and cons of each option before making a decision. Additionally, it is important to be sure to document any agreements made in order to avoid any potential disputes down the line. With a little preparation, you can confidently negotiate for the best compensation package that fits both your short and long-term goals.
Are signing bonuses taxable?
Yes, signing bonuses are generally considered taxable income and may be subject to taxes if they exceed a certain amount. It is important to understand the tax implications of any signing bonus you receive in order to avoid any potential issues down the line.
In cases where the signing bonus amount is making up for a lower salary you may want to negotiate for the signing bonus amount to be spread across multiple years.

...Continued
What other benefits can I ask for?
In addition to a signing bonus, you can also negotiate for other benefits such as stock options, additional vacation days, flexible work schedules, or a relocation package.
It is important to understand the value of each benefit you are asking for in order to ensure that you are getting the best overall compensation package. Additionally, it is important to be sure to document any agreements made in order to avoid any potential disputes down the line.
You can confidently negotiate for the best compensation package that fits both your short and long-term goals. All in all, signing bonuses can be an effective tool in negotiating a better overall compensation package. It is important to understand the pros and cons of a signing bonus as well as any potential tax implications before agreeing to one. Additionally, you should also consider other benefits or salary increases that may be more beneficial for your needs in the long run.
Is a signing bonus a good thing?
Signing bonuses can be a great way to negotiate a better overall compensation package and enhance a job offer. They can provide immediate financial relief and are generally easier to negotiate than a higher salary.
Additionally, they are often used as an incentive for new employees to join the company, which can make them very attractive to prospective job seekers. However, it is important to understand the implications of sign on bonuses before agreeing to one as there may be certain restrictions or tax implications that come with it.
Overall, signing bonuses can be an effective tool in negotiating a better overall compensation package, that is a good thing.
Is it OK to ask for a signing bonus?
Asking for sign on bonuses is a perfectly acceptable way to negotiate an improved compensation package. Signing bonuses can provide immediate financial relief and are generally tax free up to a certain amount, making them a desirable option for prospective job seekers. Additionally, they are often used as an incentive for new employees to join the company, which can make them very attractive to employers as well. However, it is important to understand the value you bring to the company before asking for one in order to ensure that you get the best possible deal.
Do I have to pay back a signing bonus?
When it comes to signing bonuses, the terms and conditions of repayment vary depending on the employer so make sure you get all the details. In some cases, employers may require that a certain percentage be paid back if an employee leaves the company within a specified period of time. Other employers may require full repayment in such cases. It is important to understand what type of agreement you are entering into before accepting any signing bonus offer so that you can make an informed decision.
Additionally, it is important to document any agreements made in order to avoid any potential disputes down the line. With a little preparation, you can confidently negotiate for the best signing bonus possible without having to worry about potential payback requirements.
Is sign-on bonus paid immediately?
It is important to understand when and how these bonuses will be paid in order to ensure that you are getting the best possible deal. In many cases, signing bonuses are paid immediately upon acceptance of an offer or at the start of employment. This one time payment is the way the average signing bonus is paid. This allows both parties involved to benefit from the agreement as soon as possible.
Additionally, some employers may offer deferred signing bonus payments which allow for more flexibility in terms of timing and payment structure. Ultimately, it is important to understand all aspects of a signing bonus before agreeing to one in order to avoid any potential issues down the line.
CONCLUSION
Signing bonuses can be a great way to negotiate a better overall compensation package and enhance an employment offer. Whether you’re looking for immediate financial relief or more flexibility in terms of timing and payment structure, it is important to understand the implications of sign-on bonuses before agreeing to one as there may be certain restrictions or tax implications that come with it. By understanding what type of agreement you are entering into and documenting any agreements made, you can confidently negotiate for the best signing bonus possible without having to worry about potential payback requirements. With this knowledge, employers and job seekers alike will have the ability to make informed decisions when considering these types of offers.
NEXT STEPS
DOWNLOAD OUR FREE SIGNING BONUS NEGOTIATION WORKBOOK…
TAKE A LOOK AT OUR OTHER PUBLICATIONS…
SALARY NEGOTIATION TIPS…
EMAIL SALARY NEGOTIATION IDEAS…
MORE CAREER SUCCESS ARTICLES…
LIFE’S WORK COACH BLOG…
If you’re like most job seekers, you want to receive a better job offer. But you know that over 70% of people don’t negotiate their job offer!
That’s because they don’t know how to stand out and confidently ask for what they want. But you’re different. You’re taking action and that’s why I created the Signing Bonus Workbook. This workbook will help you prepare and confidently negotiate a signing bonus.
In just a few minutes, you’ll be on your way to getting the rewards you deserve. So don’t wait, download the workbook now. It’s fast, easy, and best of all, it’s free
Still need help? Reach out and I’ll talk you through it!
Coach Brian

How To Write a Resignation Letter

Executive Salary Negotiation for a New Job

Job Interview Prep Checklist: Simple Tips to Win the Job

What’s the Difference Between a Resume Writing Service and Career Coaching/Career Counseling Services?

Are Career Counselors and Professional Resume Writing Services Worth It?
