Sign-on bonuses up to $100K boom as companies lure workers back to the office

• Companies are beefing up hiring with unusually generous sign-on bonuses.
• The number of job postings with bonuses has increased by a whopping 454% since last year.
• Businesses like FedEx, Compass Group, and Quest Diagnostics are leading the charge.

As the U.S. labor shortage grows, sign-on bonuses are becoming more common and noticeably larger.

Over the past year, advertisements for bonuses in job postings have increased across all sectors by a whopping 454% — to 57,123 in August 2021 from 10,212 jobs during the same month a year ago — with bonuses reaching upwards of $100,000, according to data and analytics firm GlobalData.

“We are seeing sign-on bonuses ranging from $150 to $100,000, as companies are desperately trying to entice new employees amid the current shortages,” Ajay Thalluri, business fundamentals analyst at GlobalData, said.

The increased bonus trend is a sign of the times. With offices pushing for workers to get vaccinated before coming back to the office, certain industries will still require workers to come into contact with outsiders who may not be protected. Bonuses sweeten the deal for potential employees hesitant about returning to a physical work environment.

“Roles that involve a shared workspace or are front office are the most likely to offer a sign-on bonus during the pandemic due to employees coming into contact with others,” Thalluri said. “It would be wise for companies to advertise the bonus in the job description as those that do are receiving a higher number of applicants compared to those that don’t.”

The companies offering bonuses

Several companies have stepped up their hiring approach in recent months leaning heavily on sign-on bonuses, including HCA Healthcare, FedEx, Compass Group, XPO Logistics, Quest Diagnostics and Ryder System, according to the report.

A nursing shortage has turned into a boon for travel nurses, or nurses who travel to areas in response to staffing shortages; they’ve seen their wages nearly triple in certain areas of the country, forcing hospitals to offer bonuses to retain talent.

Monument Health Hospital, located in Rapid City, South Dakota, was offering $40,000 bonuses to nurses who signed long-term positions; Temple University Hospital in Philadelphia ponied up $20,000 to persuade long-term hires.

Ascension Health Alliance posted a physician role specializing in neurology multiple sclerosis with a sign-on bonus of up to $100,000. Meanwhile, a general dentist position in Dubuque, Iowa boasted the same bonus offer.

Raytheon Technologies, a manufacturer in aerospace, is offering a minimum $50,000 bonus for “several software-related jobs” requiring active secret security clearance. These roles include:

“Integrated product team lead (IPTL)/software section manager,” “senior principal software engineer/iSW product owner & tech lead” and “software department manager GPS/navigation systems.” The company is also providing a $12,000 bonus for incumbents with top-secret or sensitive compartmented information clearance.

The research cited in the report also said that hiring bonuses for jobs in automatian (technicans and repairs), animal caretakers, barbers and hairdressers have surged since July.