What Is a Sign-On Bonus?

By Kristi Waterworth – Updated Dec 13, 2024 at 11:36 AM

Key Points

Sign-on bonuses are now common in many industries to address labor shortages.
These bonuses are taxed like regular income, affecting the net amount received.
Frequent use of sign-on bonuses can increase company costs and employee turnover.

With many different factors in play, it can be difficult to find the right employees, or even any employees, depending on the industry. That’s why so many employers are now offering sign-on bonuses in the hopes of attracting workers.

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

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