Say Goodbye to Your Sign-On Bonus in 2023

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You may not get much money to take a job next year.

Key points

  • For about a year, companies have been desperate to hire.
  • Hiring could slow in 2023, which could spell the end of signing bonuses.

If you work in finance, you may be familiar with the concept of opening bonuses. In a nutshell, it is a sum of money thrown away in exchange for accepting a job.

Signing bonuses are common in the world of finance and banking. But for jobs that aren’t as high-paying, they’re usually not as compelling.

In 2021, however, job postings offering a sign-on bonus increased by 454% across all industries, according to GlobalData. And the reason comes down to the difficulties companies have in hiring.

But there’s reason to believe hiring will slow in 2023. And that could spell the end of login bonuses – and extra cash to keep in your bank account.

A great advantage

In 2021, GlobalData reported that companies were offering login bonuses ranging from $150 to $100,000. But while high-end bonuses may remain in place in 2023, it’s those low-end bonuses that could disappear as companies slow down their hiring and become less desperate to fill vacancies.

Why might hiring slow down? For months, economists have been warning about a potential recession.

The Federal Reserve has implemented interest rate hikes in an effort to slow the pace of inflation. The logic is that by making it more expensive to borrow money, whether in the form of a credit card or a personal loan, consumers are likely to start spending less. Once this happens, the gap between supply and demand is expected to narrow, leading to lower levels of inflation.

The Fed certainly has good intentions. But consumer spending could fall dramatically in response to higher borrowing rates. And that could, in turn, trigger a recession.

Now, that’s not to say we’re looking at an extended period of economic decline in 2023. Recessions can be mild, and given the strength of the current economy, it’s fair to say that if a recession hits the coming year, she will win. t necessarily be the worst we have seen.

Nevertheless, some companies are already considering slowing recruitment due to recession fears. And if companies aren’t desperate to hire, they’re unlikely to start pumping extra cash into workers to join.

Create your own login bonus

If you get a new job in 2023, it may not come with a login bonus. But there are other steps you can take to earn big bucks.

On the one hand, you can set a budget and seriously reduce your expenses for a few months to increase your savings. You can also try working a second job for a period of time to bolster your cash reserves.

Also, many people get a tax refund every year because of overpaying to the IRS. If you’ve gotten a refund in the past few years and your financial situation hasn’t changed much this year, chances are you’ve got this windfall to look forward to in 2023.

Of course, that doesn’t mean you can’t attempt to negotiate a connection bonus as part of your overall compensation. If you bring special skills to the table, you could still be successful in getting extra money with a new job, even if this practice becomes less popular.

But in most cases, we shouldn’t expect signing bonuses to be as popular in 2023 as they were in 2021. And that’s something job seekers will have to accept.

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