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what are hiring bonuses and what are retention bonuses and which one is best a hiring bonus or a sign-on bonus is an extra amount of money offered upon being hired or signing the contract for the company or the industry that you are working for now the amount of a signing bonus will vary greatly between industries it can be anything from 10 percent of the annual wage thats offered too much much more it can be paid in one big lump sum or it can be paid over months or it can be offered as stock options the signing or hiring bonus is meant to serve as an incentive to attract candidates to the position it can be for industries that have a difficult time getting people to work for them like healthcare right now or some places that are very remote or maybe positions in careers that are dangerous to work in maybe it is a geographical area that is not that great to live in it can also be into an industry where it is really hard to get applicants where there just arent enough qualified people