what is sign on bonus

A sign-on bonus is a one-time lump sum payment given to a prospective employee as an incentive to accept a job offer. It is typically offered after the candidate accepts the job offer and may be used by companies to attract and retain talent, compensate for a lower salary, or offset the lack of certain benefits. The amount of the sign-on bonus can vary but is generally based on a percentage of the employee's first-year base pay. It is important for candidates to carefully review the terms and conditions of the sign-on bonus before accepting it