Although medical staffing shortages seem to be stabilizing, the availability of nursing and medical assistant candidates is still on a decline, according to an American Medical Group Association (AMGA) survey.
Hence, medical practices are offering additional incentives to their compensation packages to attract top talents. In fact, 77 out of 100 medical practices are offering candidates sign-on bonuses, as per the AMGA survey.
So, if you’re experiencing staffing challenges, the answer to the question is probably “yes your medical office should offer sign-on bonuses.” However, read this article to the end before making a decision.
What Is A Sign-On Bonus?
A sign-on bonus is a financial incentive paid to a new employee for accepting your job offer. Although it’s usually a one-time cash payment, it can be structured to be paid in percentages at specific periods.
In any case, the bonus is separate from the employee’s annual salary and other benefits you may offer. For instance, you may offer a medical technician an annual salary of $46,000 and a $5,000 sign-on bonus. They’ll get their sign-on bonus as agreed, and still get their complete annual salary.
Pros Of Offering Sign-On Bonuses
If you’re considering offering candidates sign-on bonuses, here are some benefits to help you decide:
· Seal the deal with top talents
Hiring top talent in this current (candidate) job market is challenging. Sure, a competitive salary, paid time offer, and hybrid work models are attractive. However, everyone is offering the same, so you have to offer.
A sign-on bonus will make your offer stand out. It can sweeten the deal and give you an edge to land a top talent. It also indicates that you value the candidate and you’re invested in having them join your Atlanta medical practice.
· Make up for salary expectations
Candidates with competing offers often walk away when their salary expectation isn’t met. If you don’t have the budget to offer them a higher salary, you can make up for their expectation by offering a sign-on bonus.
Despite the lower-than-expected salary, some candidates will accept your offer. Why? Because the sign-on bonus is a lump sum or extra cash that they need to settle a financial commitment at the moment.
· Attract out-of-state applicants
Offering a sign-on bonus can help widen your candidate pool. Candidates who are outside Atlanta will be attracted to your vacancy and send in their applications. They would consider the sign-on bonus an extra compensation that will help offset the expense of relocating.
But wait! Before you decide…
Offering a sign-on bonus comes with the risk of your medical practice’s new hire quitting after a couple of months, thereby resulting in a loss of money and time.
However, you can structure the bonus to reduce the turnover rate and ensure retention. For instance, you may break it up incrementally. Say for a $5,000 sign-on bonus, you’ll pay $1,000 on resumption, $2,000 after their first year, and the remaining $2,000 after the second year.
So, what’s the answer to “should your medical office be offering a sign-on bonus?”
Well, the decision is up to you. However, if you’re short of medical personnel like RNs, technicians, and medical assistants, you may want to consider offering a sign-on bonus.
Whatever you decide, you can contact us at RG Staffing for our medical office staffing service to help you attract and hire top medical talent for your Atlanta medical practice.