A sign-on bonus, also known as a signing bonus or hiring bonus, is a sum of money paid to a new employee by a company as an incentive to join that company. It is often given as a way of making a compensation package more attractive to the employee, especially if the annual salary is lower than what they desire. Signing bonuses are usually a one-time lump-sum payment, but some employers may spread the payment out over time. They are often used to attract and hire employees, especially during labor shortages or when competing with other job offers. The amount of the signing bonus may vary depending on factors such as the business, candidate, labor market, and economy. Signing bonuses are common in various industries, including professional sports, finance, media, and entertainment. To encourage employees to stay at the organization, there are often clauses in the contract whereby if the employee quits before a specified period, they must return the signing bonus.