A signing bonus or sign-on bonus is a sum of money paid to a new employee by a company as an incentive to join that company. They are often given as a way of making a compensation

Remuneration

Remuneration is the total compensation that an employee receives in exchange for the service they perform for their employer. Typically, this consists of monetary rewards, also referred to as wage or salary...

 package more attractive to the employee, e.g., if the annual salary is lower than he or she desires. It also lowers the risk to the company as it is a one-time payment: for example, if the employee does not meet expectations, the company has not committed to a higher salary. Signing bonuses are often used in professional sports, and to recruit graduates

Graduation

Graduation is the action of receiving or conferring an academic degree or the ceremony that is sometimes associated, where students become Graduates. Before the graduation, candidates are referred to as Graduands. The date of graduation is often called degree day. The graduation itself is also...

 into their first jobs.

To incentivise employees to stay at the organisation, there are often clauses in the contract where by if the employee quits before a specified period, they have to return the signing bonus.

See also

• Advance payment
  Advance payment
  An advance payment, or simply an advance, is the part of a contractually due sum that is paid in advance for goods or services, while the balance included in the invoice will only follow the delivery. It is called a prepaid expense in accrual accounting.-See also:*Advance against royalties*Pay or...
  
  
• Play or pay contract
• Golden hello
  Golden hello
  A Golden hello is a bonus offered by hiring firms if the hired joins the company from a rival firm. It is very similar to the traditional joining bonus offered by firms but will be offered usually for rival firm employees luring them into a firm....