When is a signing bonus paid? (2024)

A signing bonus is paid normally by an employer when the employee starts the position. A signing bonus, also called a sign-on bonus, is an extra amount of money you receive when you are hired and start a new job. Most sign-on bonuses are given by employers to new employees when they start a position.

However, there are some cases where an employer will give a sign-on bonus for the first year upfront and then an additional amount for year two of the professional's employment with the company.

Sometimes employers structure sign-on bonuses in other ways instead of providing the bonus as one lump sum of money at the start of employment. It might come to the employee in installments over their first year of employment.

Though employers often offer sign-on bonuses, new employees can also request a sign-on bonus during their salary negotiations with their new employer. Here are some ways you can request a signing bonus:

• Understand your value. To ask for a signing bonus, you must first properly understand your value and worth as a professional. You should consider your skills, expertise, and prior experience that align with your new role.

  Try to highlight in-demand skills and experience you have. You should also ensure your prospective employer shows a keen interest in you.

• Make a compelling case that you deserve a signing bonus. Before your meeting, you should list several concrete reasons you deserve a signing bonus.

  This can highlight your skills and expertise, but it can also apply to aspects of the new job, like if you are going to have more travel expenses with this new position. Strong reasoning helps secure your signing bonus.

• Consider your starting compensation package. When not enthused by a starting compensation package, you can use this as leverage to help you get a signing bonus.

  Consider your base salary and any employee benefits your prospective employer offers, then determine an appropriate figure for a signing bonus. This common tactic can often result in you receiving a bonus upfront.

In short, a signing bonus can be paid at a few different times:

• At the start of employment. Most commonly, a signing bonus is paid at the outset of employment. This could be on your first day, or it could be included in your first paycheck. Note that this bonus might have to be forfeited, either partially or in full, if you don't remain at the company for a certain period of time. The specifics should be outlined in your employment contract.

• Staggered payments. Some employers may choose to provide a signing bonus payment over a period of time. This could be in equal installments over your first year or tied to certain milestones or performance metrics.

• Deferred payment. In some cases, an employer may defer part or all of a signing bonus to a later date. This might occur if you are joining at a financially sensitive time for the company or if other agreements are in place like relocation reimbursem*nts.