Sign-On Bonus Policy
The purpose of the sign-on bonus policy is to outline the requirements and responsibilities involved with
(of both management of the entity and the employee), the timing of payments of, the factors in
determining the appropriate amount of, and the implementation of the sign-on bonus. This policy operates
on a fiscal-year basis (July through June). The sign-on bonus is a non-recurring and non-accumulating
sum of money which is paid to an employee with the sole objective of incentivizing the employee who is
receiving the bonus to accept employment at the entity. The sign-on bonus is subject to state and federal
The bestowing of the sign-on bonus upon the employee from the entity is contingent upon the following
1.) Employees must be hired as direct care staff (that is, employees providing direct services to the
client population, for example, teachers, therapists, etc.) and must also be in a position title which
has been determined by management of the entity as difficult to recruit and/or retain.
2.) Subcontractors and/or independent consultant are not eligible to receive sign-on bonuses.
Responsibilities of the Employee
Upon the determination of the sign-on bonus and eligible employees, after the communication of such to
eligible employees, and prior to the payment of the sign-on bonus, the employee is responsible for the
1.) The employee is responsible for agreeing to and signing a written agreement between the
employee and the entity and assure understanding of and agreement to the stipulations therein:
a. The employee must maintain employment at the entity for a minimum of one (1) year
from the date of hire. If the employee is unable to satisfy the 1 year minimum
requirement and is terminated before that point, the employee is responsible for the re-
payment of the pro-rated portion of the sign-on bonus that was paid. For example, if the
employee completes 9 months of service, the employee must repay 25% of the sign-on
bonus paid (for the remaining 3 months of the year for which the employee did not
Management determines, based on past experience and historical and current staffing patterns of the
entity which position titles are deemed difficult to recruit for and/or retain. This determination will be
utilized in determining the eligible employees to receive the sign-on bonus. Sign-on bonuses will be
utilized for these position titles only when other recruitment methods have been deemed unsuccessful.
Key Factors management will consider in determining which position titles are difficult to recruit/retain
consist of the following:
1.) Turnover frequency and existing vacancies
2.) Labor market factors, conditions of and staffing patterns for other entities in the industry
3.) Results of previous recruitment/retention methods
4.) Specific qualifications for the position and relative difficulty in attaining such qualifications
Before communication of the sign-on bonuses to the eligible employees, the payment terms and payment
amounts will be reviewed by the Executive Director, who will make the final determination of the
bonuses to be granted and in what amounts, as well as the determination of the payment date.
The amount of the sign-on bonus will not exceed ten (10) percent of the eligible employee’s regular
Communication of the sign-on bonuses to the eligible employees to be receiving the bonuses will occur
simultaneous to the discussion concerning the employee’s acceptance of employment at the entity.
Sign-on bonuses will be paid within the first year of employment, at a specific date determined by the