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

In 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 workflow. 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 roster bonus and a signing bonus of about $14.5 million on top of a $1.1 million base salary this year. And there are more sweeteners for him in 2022, according to the National Football League’s site.

Fear not. There are a lot of ways to entice a prospect. It might involve convincing someone to relocate, or to leave a competitive company. The bonus can be a lump sum or paid out over a period. The longer you spread out the payment, the longer you can entice a new hire to stay, if the package is attractive.

Research shows that in other industries, managers can receive amounts ranging from $10,000 to $50,000, while hard-sought clerical positions often receive sign-on bonuses of less than $5,000. It all depends on how much the potential employee is worth to your organization.

Take note that sign-on bonuses are usually viewed as supplemental income and taxed at a different rate, usually a flat percentage. Include contract verbiage that requires repayment if the new hire decides to depart within a pre-stated amount of time. For example, let’s say a new hire is given a $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. The good news is that signing bonuses do not have to be cash. For example, they might involve products or services. One manager I know discovered that a new hire needed an updated TV set. When the hire signed on the dotted line, the manager got them one.

Another popular sign-on bonus is offering remote work. Think of the savings and benefits to an employee if they aren’t commuting every day to the office. They could trim expenses for things like parking, eating out, gas, work clothing, dry cleaning, coffee and health clubs.

Work from home also allows a staffer to be more organized. Perhaps they can throw in a load of laundry between calls or run to the grocery on their lunch hour. And there’s a chance for less stress and more productivity. Studies have shown that remote workers can be more loyal and do a better job if they have the right tools.

With so many signing-bonus options at your disposal, you may have what it takes to build the team you need to succeed. After all, it’s a new world out there.

The good news is that signing bonuses do not have to be cash. For example, they might involve products or services.

Laurie Kahn is president of Media Staffing Network, which helps media companies with all of their talent acquisition needs, including diversity planning. She can be reached at (480) 306-8930 or laurie@mediastaffingnetwork.com.