HUMAN FACTOR
Sweetening the Deals
While signing bonuses were once used as a type of “honey” for top talent, they’re becoming more critical as companies lure valuable worker bees. BY LAURIE KAHN
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n the past, signing bonuses within media companies were only granted to senior managers or highly sought-after on-air talent. However, in this crazy, competitive hiring environment, they are becoming more commonplace. The pandemic has altered the balance of power between the workforce and employers. Companies are struggling to hire back staffers to maintain their needed workf low. And many media companies are understaffed, especially in the sales departments. When I went on a road trip recently, almost every truck I passed had a “drivers wanted” sign. Every fast-food location and hotel was looking for more employees. I saw billboards promoting open jobs and signs placed around town. And there were commercials on local television stations that promoted staffing opportunities. We can’t blame this all on unemployment. Many states are starting to crack down on applicants that are not actively looking for work. One of the dynamics at play relates to working moms who have decided not to return to the office; they finally have their home workflow set up. The good news is that this fall kids will be back in school, so we hope to see more women back in the workplace. How can we compete for the moms’ attention, along with so many other potential staffers? Certainly, bonuses aren’t the only carrot you can dangle. Improved compensation plans for sellers, longer guaranteed employment periods as well as training and growth opportunities are all possibilities. Conveying the idea that you have a fun environment in a fast-paced business may also go a long way. But those lures might not be enough. At this point, you might be groaning. When you think of signing bonuses, you may conjure up images of top athletes with lucrative deals to join struggling teams. Poor Aaron Rodgers of the Green Bay Packers recently signed a deal involving a $6.8 million
$10,000 sign-on bonus, with the written understanding that they need to stay for 24 months. If they depart before that two-year period ends, a pro-rated amount will be deducted from their last paycheck. T he g o o d ne w s i s that signing bonuses do not have to be cash. For example, they might i nvolve pro duc t s or The good news is services. One manager that signing bonuses do I know discovered that not have to be cash. For example, they a new hire needed an updated TV set. When might involve products or services. the hire signed on the dotted line, the manager got them one. roster bonus and a signing bonus of about Another popular sign-on bonus is offer$14.5 million on top of a $1.1 million base ing remote work. Think of the savings and salary this year. And there are more sweet- benefits to an employee if they aren’t comeners for him in 2022, according to the Na- muting every day to the office. They could tional Football League’s site. trim expenses for things like parking, eating Fear not. There are a lot of ways to en- out, gas, work clothing, dry cleaning, coffee tice a prospect. It might involve convincing and health clubs. someone to relocate, or to leave a competiWork from home also allows a staffer to tive company. The bonus can be a lump sum be more organized. Perhaps they can throw or paid out over a period. The longer you in a load of laundry between calls or run to spread out the payment, the longer you can the grocery on their lunch hour. And there’s entice a new hire to stay, if the package is a chance for less stress and more productivattractive. ity. Studies have shown that remote workers Research shows that in other industries, can be more loyal and do a better job if they managers can receive amounts ranging from have the right tools. $10,000 to $50,000, while hard-sought clerWith so many signical positions often receive sign-on bonuses ing-bonus options at of less than $5,000. It all depends on how your disposal, you may much the potential employee is worth to have what it takes to your organization. build the team you need Take note that sign-on bonuses are usu- to succeed. After all, it’s ally viewed as supplemental income and a new world out there. taxed at a different rate, usually a flat perLaurie Kahn is president of Media Staffing centage. Include contract verbiage that reNetwork, which helps media companies with all of quires repayment if the new hire decides to their talent acquisition needs, including diversity depart within a pre-stated amount of time. planning. She can be reached at (480) 306-8930 or laurie@mediastaffingnetwork.com. For example, let’s say a new hire is given a The Financial Manager • September/October 2021 7
