A shortage of talent has pushed companies to offer sign-on bonuses of up to $100,000 for some high-end speciality jobs, an analysis of job advertisements from 4,000 of the world’s largest companies concluded.
Sign-on bonus have increased across all sectors by 454%, rising to 57,123 advertised positions in August 2021 from 10,312 in August 2020, according to research released Tuesday by GlobalData DATA, , an analytics company.
The U.S. government on Friday said the economy created just 235,000 new jobs last month — one-third of Wall Street’s DJIA, -0.76% forecast and the smallest gain since January. President Biden blamed the coronavirus delta variant.
“It’s plausible that many employees decided to ‘sit out’ the delta spike and use the time to search for jobs that offer better pay and safer work conditions,” Aneta Markowska and Thomas Simons, economists at Jefferies, wrote in a note.
Others, however, say people need more incentive to work. “A supply crunch for talent has pushed companies to go the extra mile,” the GlobalData report said. The healthcare sector saw the most sign-on bonuses, it added.
An advertisement for a “physician of neurology multiple sclerosis” and also for a “general dentist” last month both had a sign-on bonus of up to $100,000. Sign-on bonuses were also offered for sales personnel and lorry drivers.
“We are seeing sign-on bonuses ranging from $150 to $100,000, as companies are desperately trying to entice new employees amid the current shortages,” said Ajay Thalluri, business fundamentals analyst at GlobalData.
“Roles that involve a shared workspace or are front office are the most likely to offer a sign-on bonus during the pandemic due to employees coming into contact with others,” he added.
Article By Quentin Fottrell Via MarketWatch.com
Quentin Fottrell is MarketWatch’s personal-finance editor and The Moneyist columnist for MarketWatch.com. You can follow him on Twitter @quantanamo.
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