In today’s job market, attracting top talent can be difficult. Because of this, many companies are offering appealing hiring incentives like sign-on bonuses, extra PTO, remote work options, and more to get high-quality candidates to apply or accept a position.
When you offer recruiting incentives, you’ll differentiate your job offer and convince great talent to join your team. If you’re considering this strategy but aren’t sure how to incentivize employees, the following tips will give you a good start to implementing your own hiring incentives.
Incentives can sometimes be a tough sell if you’re not already using them, but there are multiple benefits to hiring and employee incentive programs. Creating a strong incentive program and advertising it in the hiring process can help attract more qualified applicants, while lowering the chance that they will “ghost” you during the interview process.
Incentives can also increase current employee productivity and morale. Employee recognition programs and incentives make for happier employees, and if you were to implement a referral bonus program, your current employees would be more motivated to share current job openings with friends. A positive review from a friend carries a lot of weight when an applicant is looking for a job.
If you’re worried about the cost of hiring incentives, consider this: Missing out on top talent because they were wooed by another, similar position with incentives could cost you more in the long term. For example, it may take longer to fill positions, which means you’ll expend more costs to find the right hire.
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So, what are some good hiring incentives to implement? It will ultimately depend on your work culture but here are a few ideas to get you started:
To begin creating your incentives, a good place to start is by researching what other companies in your industry are offering for similar positions. If possible, you should at least meet or exceed their offerings.
Another way to determine the monetary value of something like a sign-on bonus is to treat it as a percentage of the position’s monthly pay. For example, if you were to offer a 25% sign-on bonus for someone making $2,000 a month (~$12 an hour), that would be $500.
If you can’t match a competitor’s sign-on bonus, a mix of different incentives can also be persuasive. A smaller sign-on bonus but more PTO may be more attractive to applicants thinking long term.
Knowing when and how to mention hiring incentives will depend on your hiring goals. If you’re looking to attract a lot of applicants, putting the big incentives like a sign-on bonus in the job posting or on your website is a solid strategy. If you’re struggling to keep applicants interested in the position, consider creating a brochure outlining your incentives and company benefits and presenting it to high-quality candidates after they interview successfully. You can include information on your total compensation package there as well as an extra incentive.
Hiring and employee incentives can be a great way to attract top talent to your job opening. If you use this article as a guide on how to incentivize your employees, you’ll be in a great position the next time you’re interviewing.