# Signing bonus

A signing bonus is a one-time lump-sum payment an employer offers a new hire, on top of salary, usually to make accepting the offer more attractive or to offset money the candidate is giving up by leaving a previous employer. It's paid once, typically around the start date, not as an ongoing part of pay.

It's often the fastest lever an employer has to close a gap in negotiation without changing the base salary itself.

**Signing bonus** — A signing bonus is a one-time payment offered to a new employee as part of accepting a job, separate from base salary and paid once, typically shortly after the start date rather than spread across future paychecks. Employers use it to close a gap between what a candidate wants and what a salary band allows without permanently raising the salary itself, to offset compensation a candidate is forfeiting by leaving a previous employer, like an unvested bonus, or to make an offer more competitive in a tight market for a specific role. Signing bonuses often come with conditions. A common one is a clawback provision, requiring the employee to repay some or all of it if they leave before a set period, often one year, meant to discourage someone from taking the bonus and leaving shortly after. The exact terms, including whether it's paid in one lump sum or split across two payments, are usually spelled out in the offer letter or a separate bonus agreement. Because it's one-time rather than a change to base salary, it doesn't compound into future raises.

Signing bonuses tend to show up more in competitive hiring markets, since they let an employer sweeten an offer quickly without reworking an internal salary band that applies to other employees in the same role. For a candidate, the tradeoff is straightforward: a bonus is immediate but one-time, while a comparable base salary increase is smaller upfront but compounds through future raises.

## Frequently asked questions

### Do you have to pay back a signing bonus if you leave early?

Often, yes, if the offer letter or bonus agreement includes a clawback provision, which typically requires repaying some or all of the bonus if the employee leaves before a set period, commonly one year.

### Is a signing bonus better than an equivalent raise to base salary?

It depends on priorities. A signing bonus is immediate and one-time, while a base salary increase is smaller upfront but compounds into future raises.

### Why do employers offer signing bonuses instead of raising base salary?

It lets them close a gap in a specific offer without permanently changing the salary band for the role, which would affect other employees already in similar positions.

## Related pages

- [Offer letter](/glossary/offer-letter)
- [Counteroffer](/glossary/counteroffer)
- [Browse open roles](/jobs)

## Negotiate the whole offer, not just one line

Intervieux's salary negotiation practice interview covers a full offer conversation, not just a single number, so a signing bonus or other terms don't get overlooked in the moment.

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