The Controversy Around Sign-On Bonuses

5 Jun 2024 · 1 min

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In this video, sales and recruiting veteran Richard Milligan argues that sign‑on bonuses are ineffective for long‑term employee retention. Drawing on his extensive recruiting data—claimed to be among the most comprehensive worldwide—he explains that while sign‑on bonuses are often used as large, short‑term incentives in certain industries, the percentages show they do not improve retention rates over time. Milligan’s stance is that CEOs and hiring managers should reconsider relying on these bonuses as a retention strategy.

Chapters

I don't believe in sign-on bonuses. And let me tell you why. So having spent my entire career in sales, I am very aware that in some industries, not only are sign-on bonuses used as incentives to get people across that finish line, but they can be massive amounts of money. And so a CEO might challenge us and go, you know, that doesn't work for us. Here's what I want to task you with. I probably have more recruiting data as an organization than 99.999% of the world. Here's what I'm aware of. Sign-on bonuses don't work in terms of the percentages. They don't work long-term to retain employees.