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A Sign on Bonus is usually offered as part of the compensation to a professional accepting a job at a company. At one time only high level executives were offered a sign on bonus, however today they are commonly offered at all professional levels.
A sign on bonus is normally offered by companies as part of a short term incentive compensation plan. Because the bonus is a one time event it enables the company to attract talent, while not adding to the long-term expenses of the company by including the sign on bonus in the job applicant's base salary.
The sign on bonus is usually calculated as a percentage of the base salary and is typically 5 - 20% of the starting salary, even for lower level management positions. The bonus may also be tied to employment at the company. For example, by accepting a sign on bonus, the new employee may also agree not to leave the company for a specified period of time.
Other forms of this term include - bonus |