Landing a Signing Bonus—Even if It’s Not Advertised

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WSJ Your Money Briefing 8 min 3 speakers 8 chapters transcribed 2 months ago
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What is the main topic discussed in this episode?

Deel/Ad Reader 0:00
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J.R. Whalen 0:18
Here's your money briefing for Tuesday, September 24th. I'm J.R. Whalen for The Wall Street Journal. The competition for workers may not be as red hot as it was a few years ago, but some companies remain desperate to land qualified candidates. Career experts say workers still have leverage, and in many cases, they should ask for a signing bonus.
Ray A. Smith 0:41
A company won't necessarily volunteer that you can get it or that they'll offer it.

What are signing bonuses and why do companies offer them?

Ray A. Smith 0:46
So it's really incumbent on the candidate, if they're not explicitly told that there will be a signing bonus with this job, to ask.
Deel/Ad Reader 0:55
We'll talk to Wall Street Journal reporter Ray Smith after the break.
J.R. Whalen 1:32
Many employers don't advertise signing bonuses but are willing to pay them for the right candidates. Wall Street Journal reporter Ray Smith joins me. Ray, help us with the basics for just a moment. What is a signing bonus and why do companies offer them?
Ray A. Smith 1:46
A signing bonus is basically a financial incentive. It's money paid up front to sweeten the deal. Companies offer them to entice highly sought-after candidates that they're in discussions with or to woo them away from rivals.
J.R. Whalen 2:04
How would a job candidate know if a signing bonus is potentially involved? Is it typically part of the salary terms listed on a job posting?
Ray A. Smith 2:13
In some cases, a job posting will state that there is a signing bonus.

How can a candidate tell if a signing bonus might be available?

Ray A. Smith 2:18
But in other cases, companies often keep quiet about those payments. They're betting that new recruits won't even think to ask for one. So is this sort of a don't ask, don't pay type thing? Yes, it is. Basically, if you do not ask for one of these... A company won't necessarily volunteer that you can get it or that they'll offer it. So it's really incumbent on the candidate, if they're not explicitly told that there will be a signing bonus with this job, to ask.
J.R. Whalen 2:46
So it is appropriate for a job candidate to ask for a signing bonus or at least ask about it?
Ray A. Smith 2:51
It is really appropriate for a job candidate to ask about about it. Either is there a signing bonus or is there the potential for a signing bonus or how about a signing bonus? It should be part of the conversation. How should they make their case that they should get one? Do some research on how long the position has been available because that'll tell you how desperate the company is to hire someone new and that gives you a little more leverage because you know there's a clock and there's a window and there's a real big need. The other thing is to look at comparable salaries for whatever the going weight is, because that can give you leverage to ask for more. And you can also talk about what you may be leaving behind in terms of the job you're leaving and if they can make you whole.
Ray A. Smith 3:37
So that's another way to make your argument for the case of why, if I take this job, it's going to set me back financially this way. So you want to make your arguments on a number of different levels, but you want to make sure that you have your research done before you make those cases.
J.R. Whalen 3:52
Signing bonuses used to be a lot more common than they are today. Why did they largely go away?

When is it appropriate to ask about a signing bonus during negotiations?

Ray A. Smith 3:56
They went away largely because the job market had cooled and employers felt like they didn't have to resort to giving out signing bonuses in order to attract candidates. When the number of candidates started to outnumber the number of openings, the ball was in employers' courts and they no longer had to woo candidates with signing bonuses. So that's why they went away.
J.R. Whalen 4:21
Which types of jobs still have signing bonuses attached?
Ray A. Smith 4:24
We found jobs specifically in healthcare, civil engineering jobs, cybersecurity engineers, licensed financial professionals and insurance, airplane mechanics. So it really is all over the map. But one thing that these fields and these jobs have in common Is there a specific skill set that these people have or that these jobs demand? And so not many people will have some of these crucial or unique skill sets.

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