Why are employees given a “signing bonus”? Isn’t the salary enough incentive to join?
In: Other
A large sum of money now is often better than a large sum of money later. Let’s say a person gets a signing bonus equal to 3 month of wages. With that bonus, they can instantly:
* Buy a new car to drive to work
* Make a down payment on new house closer to work
* Pay off debts
* Buy things that will help them settle into their new job (suit, office supplies, computer, etc.)
* Pay the registration fee for new daycare/child activities.
They would be able to get these things if they waited three months, but it is better to get them right away.
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