For employees, sign-on bonuses also come with benefits and drawbacks:
Pros:
Immediate Financial Benefit: A sign-on bonus provides an immediate financial boost, which can be especially helpful for covering relocation costs. Increased Job Appeal: The additional compensation can make a job offer more attractive.
Cons:
Repayment Clauses: Some sign-on bonuses come with repayment clauses if the employee leaves the company within a certain period. Tax Implications: Bonuses are subject to taxes, which may reduce the net amount received. False Sense of Security: Relying on a sign-on bonus might create a false sense of job security, potentially leading to less caution in evaluating the overall job offer.