Job seekers hoping to secure signing bonuses had better move quickly, as employers are indicating in a new Salary.com survey of U.S. companies that these bonuses are a short-term fix for widespread talent shortages.
While 50 percent of employers surveyed are offering signing bonuses, only 20 percent expect to still be doing so at the end of 2021.
This is not bad news for new hires, however, as more than 62 percent of organizations are planning to increase base salaries to attract new hourly and salaried employees within the next six months, which will increase their labor costs.
Even more promising news for job seekers: 67 percent said their starting base salaries are above their market reference point.
“The prevalence of signing bonuses to attract workers in high demand and short supply has proven to be a short-term phenomenon, as organizations move to a post-pandemic reality,” said Garry Straker, compensation consultant at Salary.com.
“The shift to salary increases for new hires will have greater long-term impact, so organizations will have to move with care to attract new hires while retaining existing employees.
“Retention of current employees will require proactively monitoring and addressing salary compression.
“Incumbent employees who see new hires making as much, or more than themselves may feel they are being treated unfairly and be tempted to look elsewhere to attain a higher pay rate.
“It’s important to realize it’s not just about pay for today’s employees, many of whom have expressed a strong preference for flexible work arrangements, advancement opportunities, greater diversity and alignment of cultural values that can make an employer attractive,” said Straker.
-PR NEWSWIRE
