A small systems integrator has not used signing bonuses and admits it is having increasing difficulty in competing for experienced technical workers. They see this as a particularly effective inticement for the passive job seeker. This very often is seen as the carrot that seals the deal with a hot prospect. Their payments are made in the first paycheck. Thanks to all who willingly gave their comments on this issue.
Additional comments are always welcome.
For fourteen years, Gary Cluff has been compiling the cost per hire survey for the Employment Management Association. The 1996 survey confirmed the trends we all expected. The most significant indicator of the competitive job market is reflected in the increase in the average cost of an advertisement to net one hire. Similarly, companies report increasing amounts are being paid to employees for referrals of new hires. Clearly the supply problem, particularly in the technical market where much of the growth exists, is making it more difficult and more costly to find new workers.