Signing Bonuses
What If Signing Bonuses Actually Delivered ROI?
Attracting (and winning) key talent in today’s environment requires some sort of capital investment up front and a compelling compensation package. This often means employers are doling out fairly substantial signing bonuses. Historically, signing bonuses stemmed from one-off situations exacerbated by the downfall of equity or the rising cost of living.
Now, signing bonus strategies have become commonplace across multiple industries – well beyond the technology worker use case – from healthcare to pharmacy to trucking.
Let’s break them down.
Why a Signing Bonus?
- For employers trying to entice applicant
- Intended to create urgency and a reason to “make a move”
- Enable an employee to take care of expenses sometimes associated with a new job (clothes, apartment etc.)
Key Signing Bonus Facts
- These represent a one time cost
- They are subject to compensation and payroll tax at the time provided
- Offer the ability to tie them to other aspects like (typically) limited-duration cliff based clawbacks, etc
The Limitations of Traditional Signing Bonuses
Signing bonuses are transactional
Often considered a bargaining chip during negotiations, traditional signing bonuses don’t support future employee retention, morale, or engagement.
Administrative burden of a clawback
Human Resources (HR) teams often lack time or manpower to track the bonus process and enforce the contract. Most HR teams are focused on ensuring talent acquisition and retention/productivity improvement versus taking the time to navigate the murky waters of litigation and recovery of funds.
Term signing bonus challenges
Some states require these to be labeled ‘cash advance’ to ensure future clawback.
The Keep Solution.
Keep delivers the ability to instantly craft a bonus that meets an employees’ needs while delivering the additional benefits of tenure, emotional attachment, and trackable ROI. What if you could be strategic about when and how you deliver a bonus – and make signing bonuses a key element in your recruiting, retention and performance effort on behalf of your company? Then you could track delivery, use, and vesting all within one simple-to-use technology?
Keep’s Employee Engagement Platform (KEEP) is customizable, easy to deploy, and offers human resources professionals the flexibility to deploy innovative compensation strategies that dramatically improve hiring and retention metrics across the organization.
KEEP benefits include:
Turn-key Onboarding
Turn-key onboarding that allows HR teams to instantly leverage the platform with no dependence on IT integrations.
Bonus Management Dashboard
Bonus dashboard for HR teams to have an integrated view of their bonus portfolio with notifications and updates (for both employers and employees) about key milestones for bonuses.
Employee Portal
Employee self-service portal that lets employees manage their KEEP account and view their bonus vesting schedules.
Governance & Compliance
Embedded Fintech
Enable seamless bonus delivery and funding execution for increased efficiency. Intuitive user interface (UI) for any sized organization and employees at all salary levels.
Did you know?
63%
Average signing bonuses rose 63% from 2013 to 2022.
3/4
More than three-quarters of companies plan to offer year-end bonuses to employees,
8X
Employees who receive bonuses or other regular rewards are 8x more engaged.
The Keep Advantage.
Keep Financial is revolutionizing how companies attract, engage, and retain talent through bonuses — providing an easy-to-use platform to create and deploy usable cash to employees that is earned over their tenure.
Long term engagement
Delivers long term engagement as these are not transactional but purpose built to drive employee engagement.
Peace of mind
Embedded fintech capabilities ensure the business is protected in the event of an employee leaving.
Protect your brand
Delivers long term engagement as these are not transactional but purpose built to drive employee engagement.
Hear From Our Customers.
Our employees are constanly hit up by recruiters and other companies. Keep Technologies saved us from losing over X employees last year. We were able to issue Keep Vesting Cash bonuses that have improved morale and created a mutually benefitial contract between us and the employee.
Jane Smith
EQUA Technologies Inc.
More Keep Use Cases.
How do you ensure your mergers, acquisition, or other business transformations align with retention and deliver ROI?
How do you ensure your mergers, acquisition, or other business transformations align with retention and deliver ROI?
How do you ensure your mergers, acquisition, or other business transformations align with retention and deliver ROI?
