Sign-On Bonuses: A Popular Tool for Recruiting Top Talent

Sign-On Bonuses:
A Popular Tool for Recruiting Top Talent

Despite a weak job market, companies are still using sign-on bonuses as a recruiting tool to attract top talent. Results from the 2010 Culpepper Sign-on Bonus Practices Survey reveal that the percentage of new hires in the U.S. and Canada receiving sign-on cash bonuses is expected to increase slightly from 10 percent in 2009 to 12 percent in 2010.

Topics covered in this report include eligibility for sign-on bonuses by type of job & job level, sign-on bonus amounts, waiting periods & timing of sign-on bonus payments, forfeiture & repayment policies, sign-on equity awards, and referral bonuses.

Other Key Survey Findings

Most companies restrict sign-on cash bonuses to a limited number of employees, such as key new hires filling critical positions. Only 3% of companies provide sign-on cash bonuses to all new hires.
Technology and life sciences companies are more likely than other types of companies to offer sign-on cash bonuses to new-hire employees.
The types of jobs most commonly eligible for sign-on cash bonuses are technical, scientific, and engineering jobs.
When asked to identify critical and hot jobs most likely to receive sign-on bonuses, participants mentioned software developers more than any other job.
A majority of companies with sign-on cash bonus programs also have sign-on equity award programs.
Eighty percent of companies have a referral bonus program, whereby cash bonuses are paid to employees who refer new-hire employees.

Sign-on Cash Bonuses by Type of Job
The types of jobs most commonly eligible for sign-on cash bonuses are technical, scientific, and engineering jobs (Table 1).

Table 1: Sign-on Cash Bonuses by Type of Job
Job Function	Percent of Companies Providing Sign-On Bonuses
Technical / Scientific / Engineering	91%
Executives	86%
Sales & Marketing	69%
General Operations (Admin / Finance / HR)	62%
Customer Support & Service	22%
Manufacturing & Production	18%

When asked to identify critical and hot jobs most likely to receive sign-on bonuses, participants mentioned software developers more than any other job. Executives, other high-level management, sales jobs, and jobs requiring wireless technical skills were also common.

Comprehensive Report
In addition to the data table listed above, a comprehensive version of this report includes the following data tables and breakouts:

Sign-On Cash Bonus Eligibility by Job Level
Breakouts by Number of Employees, Industry Sector, and Ownership
Sign-on Bonus Cash Amounts by Job Level
Waiting Periods & Timing of Sign-on Bonus Payments
Breakouts by Number of Employees, Industry Sector, and Ownership.
Sign-on Bonus Forfeiture & Repayment Policy
Sign-On Equity Awards Eligibility by Job Level
Breakouts by Number of Employees, Industry Sector, and Ownership
Referral Bonus Programs
Breakouts by Number of Employees, Industry Sector, and Ownership

Availability of Comprehensive Report

Free to participants in 2010 Sign-On Bonus Pay Practices Survey
Free to subscribers of Culpepper Pay Practices Survey Package
(includes Culpepper Library and Small Company Plus subscribers)
$295 for non-participants and non-subscribers (Order Form)

Data Source: Culpepper Sign-On Bonus Pay Practices Survey of 85 participating organizations.
Survey Dates: June 14, 2010 through August 2, 2010

Participants by Sector:
Technology 51%, Life Sciences 15%, Other 34%

Participants by Number of Employees:
Up to 100: 19%, 101 to 500: 12%, 501 to 2,500: 33%, 2,501 to 5,000: 24%, Over 10,000: 13%

Participants by Ownership:
Public 45%, Private 45%, Non-Profit: 10%

Participants by Country:
United States 96%, Canada 4%

Copying. If you copy portions of this report into your own publication, please cite your source by including the following:
"Source: Culpepper Sign-On Bonus Pay Practices Survey, August 2010, www.culpepper.com"