Sign-on bonuses come with both advantages and disadvantages for employers:
Pros:
Quickly Attract Talent: Sign-on bonuses can make a job offer more compelling, helping companies fill positions faster. Competitive Edge: Offering a sign-on bonus can give a company a competitive edge in the talent acquisition market. Boost Employee Morale: Sign-on bonuses can create a positive first impression and boost new employee morale.
Cons:
Cost: Sign-on bonuses can be expensive, especially if they are offered to multiple new hires. Retention Issues: Employees may leave soon after receiving their bonus, leading to potential retention issues. Resentment: Existing employees may feel resentful if they did not receive similar bonuses when they were hired.