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Sign-On Bonus Template For Immediate Use

Updated: Feb 10, 2023

Looking for a sign-on bonus template to use in your own business? If so, you've come to the right place.

A sign-on bonus is an effective means to attract and retain top talent. When you have a customizable sign-on bonus template that can be reused and repurposed, you can streamline hiring processes and reach out to potential candidates faster.

Let's break down what a professional sign-on bonus agreement form should include, what this template can look like, and what you should keep in

mind during the whole process.

The Do's and Dont's of a Sign-On Bonus Template

A sign-on bonus is a great way to attract new employees. However, a poorly written sign-on bonus template can lead to dissatisfaction and disputes. Here are a few do's and dont's to ensure that your sign-on bonus template is a win-win for both the company and the employee.

  • Be concise: DO specify the terms and conditions of the signing bonus, such as the amount of the bonus, effective date, and how long the employee has to be employed by the company to receive the bonus payable.

  • Discuss the numbers: DO indicate whether the employee has to repay the full amount upon the termination of employment and how they have to repay the company in case of a breach of contract.

  • Request for signature: DO ensure that the employee acknowledges and agrees to the full terms and conditions of the sign-on bonus agreement.

  • Keep it simple: DON'T make the sign-on bonus language complicated. Discuss it clearly and straight to the point.

  • The timeline: DON'T forget to indicate whether the payment of the sign-on bonus will be made over time or just once as a lump sum payment.

Sign-On Bonus Template

Here's a sample sign-on bonus template that you can use to standardize your communication with potential employees.

Company address
Company Phone
Hello, new employee name,
We are pleased to offer you a signing bonus of $ 5,000. $2,500 of this bonus will be paid in one lump sum in a separate check on the next regularly scheduled pay date after you start employment with Aire Serv.
The signing bonus is taxable, and all regular payroll taxes will be withheld. If you leave a company within 12 months of your hire date, you will be responsible for reimbursing the company for the entire $2,500 signing bonus paid upon hiring.
At the beginning of your second year of employment, you will be paid the other $2,500 in one lump sum in a separate check, less all standard taxes withheld. If you leave employment with the company for any reason before completing 24 months of employment, you will be responsible for reimbursing the company for $2,500.
Suppose your final paycheck/possible severance does not fully satisfy the debt you owe. In that case, you agree to pay any reasonable collection, interest, and attorney fees associated with the collection and settlement of the debt.
By your signature on this employment agreement, you authorize the company to withhold this amount of $2,500 from any potential severance and other final pay you receive upon termination of employment.
Employee Name (please print): _________________________________________
Employee Signature: ____________________________________
Date: ______________________

Tips For an Effective Sign On Bonus Letter

We've rounded up a few tips for you in order to write an effective sign-on bonus letter. These tips can help you streamline the process, reinforce company policies, and avoid future disputes. These tips include:

  • Tip to avoid disputes: Make sure that you specifically outline the details of the payout to avoid disputes.

  • Tip to make the signing bonus work for your company: The signing bonus should incentivize employees to stay in the company. You can strengthen this incentive by offering a payout on the start date, 30 days after sign-on, and extending it up to 24 months after hiring.

  • Tip to ensure proper communication of the terms and conditions: Ensure that the employees understand the consequences in case of termination of employment and how the date of termination can affect their sign-on bonus payout.

  • Tip on setting clear expectations: Set employee expectations such as how the company shall pay the sign-on bonus and the specific payroll date for the payout.

Looking For More HR Tips and Great Templates?

Onboarding new talent can be challenging, and keeping this talent in the company is tougher. It is shocking to realize that 20% of staff turnovers occur within forty-five days of recruitment. A good HR team can help ensure that you attract and retain the right candidates, especially in this cutthroat global talent market.

Teamworks Group can provide the right HR solutions tailored to your needs. Contact the Teamworks Group today to see how they can help you meet your recruitment goals.


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