In the current job market, companies are willing to offer incentives to attract talented candidates to their workforce. One of these incentives is the sign-on bonus, a one-time payment made to the new employee upon accepting the job offer. These have begun to become synonymous with retention bonuses, which are sign-on bonuses that are paid out over a period of time. The sign-on bonuses were first introduced to attract skill sets such as software developers, but now they are becoming common among fields that require special skills.
With the lack of candidates looking for jobs, some unscrupulous individuals are taking advantage of the system by scamming hiring managers. Therefore, upon hiring, managers and employers, especially in the healthcare sector, need to take extra precautions to avoid being scammed. In this article, we’ll discuss several important factors to consider when sign-on bonuses are in play.
Sign-On Bonuses Are Not a Guarantee to Quality Applicants
Offering a sign-on bonus is not a guarantee that a fitting candidate will reach out. The main reason why most companies offer a sign-on bonus is that they want to attract talented individuals to their team, which is a valid way to stand out in a field of open job opportunities.
Sign-On Bonuses Should Not Be the Main Attraction
The sign-on bonus should not be the only reason why the candidate is interested. If you only hire someone who is largely interested in only the sign-on bonus, it’s unlikely that they’ll stay with you for long. Therefore, it’s essential to assess the candidate’s qualifications, skills, and reasons for working with your company to ensure that they are interested in working together in the long-term.
Beware of Employment Scammers
The healthcare sector is not exempt from employment scams. Offering candidates sign-on bonuses can also attract people who are more interested in the bonus than the job, which is why employers and hiring managers need to scrutinize the candidate’s motivation for applying to the role.
There are instances where candidates pretend to be professionals in the healthcare industry with forged documents. Some of these scammers may not even have the skills and qualifications needed for the job. On the other hand, there are some people who are qualified but plan to leave once given the sign-on bonus, ignoring any mandated employment time that was to come with the bonus.
To avoid being duped by these scammers, hiring managers should do a thorough background check and professional reference check on the candidate before hiring them. This helps to ensure that the candidate is a qualified professional with the necessary experience and qualifications to work in the healthcare sector and can ensure that candidates who have done this before won’t be able to pull the same trick twice.
The Best Time to Release Sign-On Bonuses
There has been a debate on when the best time to release the sign-on bonus is. Some employers release the bonus upon acceptance of the job offer, while others release it after the employee has worked for a specific length of time, say a year or more.
However, the best time to begin releasing the bonus is after the candidate has completed the probation period. This helps to ensure that the candidate is the right fit for the organization and has the necessary skills and experience. To be extra precautionary, creating a payment plan (or a retention bonus) ensures that the candidate will not run off with a lump sum.
Communicate the Payment Plan
To avoid any confusion, it’s important to communicate the payment plan for the sign-on bonus. Be clear on when the bonus will be paid, how it will be paid, and any conditions that may affect the payment. This helps to ensure that the candidate is aware of the payment plan and understands what is expected of them.
It will also serve as another method of deterring candidates who are only interested in leaving with the money as soon as possible, as they will understand that they will have to abide by the contract before seeing the bonus.
It should be noted that the candidates who pull scams like these are in the vast minority, but it does not mean that they do not exist. Creating a cautionary system from the get-go is a great way to ensure that only qualified and dedicated candidates are being rewarded with sign-on bonuses instead of scammers.
If you are an employer looking to hire and are worried about finding the right candidates, we can help! Our specialized recruiters are ready to connect you to dedicated and qualified individuals, so connect with them here today!