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No bonus should ever have to be paid back. If you have to pay it back it is a loan or prepaid work. Signing bonuses should be a reward for agreeing to start w
by codeonfire 11y ago
No bonus should ever have to be paid back. If you have to pay it back it is a loan or prepaid work. Signing bonuses should be a reward for agreeing to start work, not work for a year. If $35k is too much for that, then don't pay $35k, pay $5k or zero. If you want someone to stay a year, pay a one year $35k bonus. The only reason these repayment agreements exist is because the company expects employees to go underwater and be trapped at their company. How does that make good employment policy to have people forced to work at your company?
- danieltillett 11y agoI think life is a bit more complex than this. There is good reasons for having a signing bonus be repaid if the recipient leaves within the stated time period, but it should be set at a level that make the person think twice about leaving, but not not so high that the person is handcuffed to the job. It sounds like $35K was too high and maybe a number around $10K would have been a better fit. I am surprised anyone would spend a signing bonus until they are sure they wanted to work at the company that had given it to them. Keep the money safe until you are sure you want to stay.
- codeonfire 11y agoWell, people starting a job often have a large number of expenses and have probably gone a few months without income and have a few catastrophes they pushed back a few weeks. Yeah it's nice not to live paycheck to paycheck but even a large number of businesses could not go a significant amount of time with no cash flow.
- danieltillett 11y agoWell if you have no choice then you don’t have a choice :) It is still a very good idea to save as absolutely as much as you can until you know you want to stay.