American businesses continue to hand out signing bonuses far more than they used to before the pandemic, even as wage growth cools down, according to job listings service Indeed.
(Bloomberg) — American businesses continue to hand out signing bonuses far more than they used to before the pandemic, even as wage growth cools down, according to job listings service Indeed.
While it’s fallen slightly, the share of jobs with a signing bonus remains three times higher than it was in early 2020, Indeed said in a research note. Roughly 5% of all posts offer some kind of incentive, and the number was sharply higher for jobs requiring more in-person work, like nurses and medical technicians.
The numbers show how companies still face tough competition for talent in a labor market where US workers have plenty of options, even as the Federal Reserve seeks to cool things down. Signing bonuses allow employers to lure workers without being locked into paying higher salaries.
“While recruiting intensity may not be quite as high as it was at the peak of the market last year, it is still higher than might otherwise be expected given the overall cooling in the market,” the report said. Indeed tracked job ads that mention terms like “signing bonus,” “signing incentive” and other variants.
Health care is one industry where the incentives have become particularly widespread. About one-in-six nursing jobs, for example, now comes with a hiring bonus according to Indeed.
Signing bonuses are a useful tool for the recruiters that US businesses are increasingly turning to as they struggle for staff. The overall effect is to elevate labor churn, typically a major driver of overall wage gains.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.