© 2022 Fairygodboss. All rights reserved.
Are Sign On Bonuses a real thing?
I am considering a job change and have an outstanding 401k loan that stems from having to write a check to get out of our old house. A friend suggested I ask as part of negotiations for a sign on bonus to help pay off the loan balance and avoid taxes. Is that a real suggestion? I am in the consulting/project management arena.
Any other ideas? I had honestly sort of forgotten about this loan hanging over my head until I remembered, I don’t have enough in savings to pay it outright, I could pay half the balance from savings but I am not sure of that is even allowed. Once I leave my company i have 30
days to pay it or it becomes a disbursement from
my retirement.
Ruzana Glaeser
Co-founder of brightmeetsbrave.com
950
07/22/19 at 5:03AM UTC
A singing bonus (or sign-on) is definitely a real thing and many companies offer it as an incentive. Many consulting firms (Accenture, Deloitte, E&Y, etc) deploy is almost as a standard practice to attract new employees.
Many companies can offer it as well, but don’t advertise it, so definitely use it in negotiations. Just don’t compromise on your salary. Signing bonus helps you make a decision to chose that company.
I have had a singing bonus in two of my jobs when I specifically asked for it.
Go for it! Definitely consider it, keep in mind that it will be taxed, so if you ask for $20,000 signing bonus, you will get taxed on that income, so you won’t be seeing a check for that much.
© 2022 Fairygodboss. All rights reserved.