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Ann,

Great information. Be nice to know how much of an advantage they offer an employer. Do you happen to know the bonus amount for accounting grads?

Frank

Frank,

thanks for the comment.

Andrea didn't mention the average bonus amount for accounting grads in our exchange - but I would wager that it isn't far behind the top amounts listed for the "technical" majors, particularly if you focus in on the offers extended by accounting firms.

My theory about these signing bonuses is that the advantage they offer employers is the ability to attract new employees, particularly in critical skill areas or where the labor market is tightening, without creating (or aggravating) internal compression issues with the pay of experienced, longer-tenured employees. What do you think?

Ann,

I guess they are effective when other factors to attract people are about equal and other firms offer them.

Frank

Thanks for going on your research expedition, Ann. The part about "technical" fields being most likely to get a bonus struck a cord. I had a client that was a utility. They need engineers and two thirds of their top ones can retire over the next five years. Every other utility is in the same position. To ratchet up the competition level even more, the number of engineering graduates in the fields that public utilities use has been declining for decades.

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About The Author

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    Compensation consultant Ann Bares is the Managing Partner of Altura Consulting Group. Ann has more than 20 years of experience consulting with organizations in the areas of compensation and performance management.

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