What is a Sign-on Bonus?

Sign-on Bonus

There is a job where I am paid fairly, with all the benefits, and a stress-free environment? Cool, sign me up! 

This is the best-case scenario but as you probably concluded already – in reality, you will need to get one step further.

When you need experienced talent which both you and your competitor have set an eye on, you need to get generous. This is where an attractive sign-on bonus can help you find great talent with an amazing set of skills and meet their and your expectations halfway. This especially applies to the trucking industry. 

Trucker shortage is still an important issue going on and it is affecting the way many other industries are working. If things continue going this way, it is expected that the shortage will continue to grow. Right now trucking companies are offering incentives and some bonuses go to four digits area. There are plenty of attractive job offers out there. But is it really all fine and dandy? Is there a fine print lurking between these sign-on bonuses, incentives, and safety bonuses?

 Let us explore how the sign-on bonus works, some of their benefits, and also some of their downsides. 

Why Are sign-on Bonuses important?

Sign-on bonuses are important in a few different ways. First and foremost – they actually help the employers save money. How? Marketing and job posting promotion tend to drain a lot of resources and it doesn’t guarantee that you will attract the talent you are looking for. 

With an attractive sign-on bonus you can negotiate more effectively with candidates that possess the skills you are looking for. 

Sign-on bonuses are great when it comes to bridging the gap between the desired salary of your potential employee and your offer. Employees can have that feeling of instant gratification and they would feel welcome to your company.

Sign-on Bonus

How and when do you get a sign-on bonus?

Before you get to the contract part, you need to double-check if you really qualify for the position. Be honest about your qualifications, the sign-on bonus might look attractive but it is not the main reason to apply for a job.

Companies don’t just give money to everyone, without expecting something in return. Check all the conditions prior to signing the contract. Do you need to work for a few months before getting that bonus?

The fine print is not always fine. So depending on the company there are a few ways to earn your bonus. Several scenarios apply here:

  • You get your bonus after you finish your orientation.
  • You get your bonus after your first successful run.
  • Bonus is paid with your first paycheck.
  • Bonus is paid after three months of work.

Make sure that your bonus is fully yours. Some companies will try to bargain with you or demand it back if you don’t fulfill all the conditions. Also, you should never allow chargeback from your account. 

Questions you need to ask your potential employer about bonuses

Before you get overwhelmed with these astronomical numbers on your paycheck talk with both company and the recruiter and go through all the forums and reviews of your potential employer. Trucking companies are numerous and you will find someone who had a chance to work there and then you will be sure what you can expect. 

Some important things you will need to ask:

  • The driver turnover rate – you need to see what is happening in the background and causing a high turnover rate in the company.
  • Are there any better bonuses in the company? Is there a different reward system I need to be aware of before getting the sign-on bonus?

Always remember to check the good and bad reviews on the forums. We know you want to get that awesome bonus but first, you need to be sure if the company is honest about their offer. 

In conclusion

Also, do some simple math to see if the bonus is a bonus indeed. Check average pay, average miles per week, and incentives – put everything on the paper and see does it work for you. There are some nice promises out there but they often look good only on paper. So be sure that the magic won’t disappear after one great sign-on bonus. 

Not all jobs are created equally and if you are in the position to choose – you will need to do it very wisely. When you look for sign-on bonuses online you will find numerous offers and they all seem great. The largest sign-on bonus so far was $15000 for team drivers. But when you do the math – it seems grand only at the beginning. 

We don’t know how long the trucker shortage will last but employees will need to show a genuine appreciation for their employees, without adding too much fine print. Hence, if you are eager to work as a truck driver, feel free to fill out the form!

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