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Hiring Bonus
Recruiting & Staffing
Hiring Bonus
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Could someone give me some information on hiring bonus for new grads in your company. Typically how much do you offer, what is the time in which you pay this amount out--immediately, 6 months, 1 year.
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Forums » Topic Forums » Recruiting & Staffing » Hiring Bonus
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Hiring Bonus
posted at 11/20/2000 2:57 AM EST
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Posts: 3
First: 5/3/2000 Last: 11/20/2000 |
Could someone give me some information on hiring bonus for new grads in your company. Typically how much do you offer, what is the time in which you pay this amount out--immediately, 6 months, 1 year. Are there any legal ramification that I should know about? Could you give me an example of an offer letter, policy example. Thanks |
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Hiring Bonus
posted at 11/28/2000 6:51 AM EST
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Posts: 3
First: 11/28/2000 Last: 6/24/2003 |
Try $0. If you have rated/scored the position according to the market, then you don't need a bonus.
If you offer a bonus, then you have a candidate that is strictly money motivated and will be a short-term employee. |
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Hiring Bonus
posted at 11/28/2000 7:56 AM EST
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Posts: 6
First: 11/28/2000 Last: 10/21/2009 |
Hiring bonuses can be effective, if used carefully. Do you have the kind of work environment the candidate seeks? Can you help that person meet career goals at your company? If yes, then the hiring bonus can give you the edge over competing companies. To keep the employee for a longer time period, award part of the bonus up front and the remainder after 6 months or 1 year of satisfactory service. But more importantly, if your company has the opportunities and culture the employee wants, s/he will stay well beyond the bonus payment time. If you don't have something more than money to offer - don't bother.
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Hiring Bonus
posted at 11/28/2000 11:06 AM EST
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Posts: 434
First: 6/14/1999 Last: 4/25/2001 |
$0 is a good amount for a new grad as the previous posts suggest.
An exception would be a hiring bonus in lieu of relocation. Giving a few thou (3K for example) and not worrying about having to reimburse for travel/temp living/moving saves some admin headaches. If you do something like this, though, make sure that your new hire knows about the IRS mandatory withholding for bonuses of 40%. It shrinks the bonus horrendously and your new hire will be in for a nasty surprise. |
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Hiring Bonus
posted at 11/29/2000 2:26 AM EST
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Posts: 8
First: 11/29/2000 Last: 4/27/2006 |
It depends on the position, your compensation structure, and internal politics. If you can only offer a base pay of X dollars but that isn't enough to lure in college grads or hard to fill jobs, a hiring bonus may be the politically acceptable solution. I would also recommend it being spread out between immediate, 6 months, and 1 year payouts.
This should only be a temporary solution. If forced into that situation, you should take a hard look at your total compensation structure. The current employees will find out about the bonuses one way or another. That will often create some resentment. |
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Hiring Bonus
posted at 11/29/2000 2:42 AM EST
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Posts: 1
First: 11/29/2000 Last: 11/29/2000 |
It depends entirely on what the new grads are newly graduating from... undergraduate? graduate? engineering? HR? IT? etc. Huge variations exist. Information from one field/level of edu is pretty useless for people from other fields/levels.
Personally, the group (42 people) I graduated with last year averaged $7,000 for sign on bonuses (range of $3,000 to $15,000 across the nation and industries). That's for master's level HR graduates from a competitive institution. Whatever is paid, you will lose a chunk to taxes - however what gets taken out varies from state to state. I lost only 28% in taxes from my 8K. Regarding legal ramifications - it's fairly standard that you will be required to sign a form outlining what portion of the bonuses you will have to pay back should you leave the company with X amount of time. 100% (including the amounts with held for taxes) if leave within 6 months, 50% if within 1 yr, 0% if leave after 1 year... and endless variations on that theme. |
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