I recently saw a job posting on one of my Facebook groups that was advertising a $60,000 sign-on bonus for a Rad Tech. I know, right! It is about time that hospitals started spreading the money around to medical imaging and laboratory. It seems all the glory (and money) has been offered to the nursing community for many, many years. Now, I am not negative towards that. I believe anyone who saves lives and must deal with the daily grind that healthcare workers go through should be paid top dollar. Healthcare workers, police officers, and teachers to be clear. But now, our time has come to be paid, and justifiably so.
Is it Really a Sign-On Bonus
So, let’s talk about sign-on bonuses. To be clear, they are discretionary payments to assist with making a transition to a new job or location and are mostly commonplace in healthcare. However, the amount offered can vary greatly. What also varies is how they are paid to the new employee. As for medical imaging and laboratory, we are seeing offers that usually range from $5,000 to $20,000, but more on the lower side of these two figures. If someone is offered $10,000, then I would say that is rather good these days. But are they really “sign-on bonuses”?
What About Taxes and Pay Out
On the surface, a bonus might sound great. However, after taxes and a waiting period, you might find that it is rather lackluster. The vast majority of employers we work with pay the “sign-on bonus” out in several installments over a period of two years. Let’s say in this example that $10,000 is paid out over a period of two years. This is quite common. Bonuses are usually taxed at a flat rate of 22% but can be more depending on your state. So, to keep it simple, let’s just use this as an example. It is likely that it will be paid in four installments of $2,500 over a period of twenty-four months. After taxes, you end up with approximately $1,950 per installment. Sure, it’s okay, but it’s not actually a “sign-on” bonus at all. You do not get the money when you sign on, nor is it $10,000. This is more of a retention bonus, and it might not help you very much if you need it to help you settle into a new home.
Negotiating a Sign-On Bonus
More so than the actual wage itself, bonuses are more likely to be negotiable with the employer. Not the amount, but the structure. I have helped dozens of candidates negotiate how a bonus is paid out, so do not hesitate to ask your potential employer to structure it in such a way that it helps take the burden off you to make the move. After all, they need you too. Furthermore, you are not asking for more money in this case, you are just asking them to pay it to you differently. Maybe ask them for half of it on your first check because you have expenses to cover due to the transition. This might include deposits for an apartment, utilities, internet, insurance, storage, etc. Many of these things might not be covered under your relocation package if one is offered. Being specific with them is the key. Just do not come in with guns blazing and demand it. Put together a basic description of the costs and show them why you need it on your first check, not six months down the road.
Is Their a Contract for a Bonus?
As a standard practice, repayment agreements are usually required by an employer in return for receiving relocation assistance and/or bonuses. These agreements simply allow the employer to legally recover these discretionary payments through payroll deductions or other means in the event a person leaves before fulfilling their agreed upon employment contract. In some cases, employers do prorate the amount and will give credit for the actual time worked under their contract should the employee leave before fulfilling their agreed upon term. To be clear, this only applies to stipends, relocation assistance, and bonuses. Employees can leave for any reason, at any time, otherwise. United States labor law also allows “at-will employment,” meaning an employer has the legal right to dismiss an employee for any reason, and without warning, if the reason is not illegal.
In conclusion, you might not be offered a $60,000 sign-on bonus, but you will likely be offered some amount. If not, ask for it. Or, if you are working with an experienced recruiter, ask them to try and negotiate it as part of your package. Again, be specific as to why it will help you with the transition, which in return will help them get you on board more quickly.
