Digging into sign-on bonuses: As dollar amounts climb for the first time in nearly 3 years, a look at alternatives to promote beyond this ubiquitous — yet sometimes questionable — incentive
One key trend highlighted in the current quarter’s data from NTI’s National Survey of Driver Wages is that the average dollar amount for-hire fleets are paying for sign-on bonuses rose for the first time in over three years, since late 2022.
After a slow but steady downward drift from 2022’s final months through late 2024, then a dip to start 2025, the average dollar amount of sign-on bonuses ticked upward this spring. The trend was part of a broader set of shifting narratives in driver compensation as the freight market continues trudging toward re-balance. You can read more on what the latest driver pay data signals in our recent recap in the NTI Blog.
Where sign-ons go from here remains to be seen. NTI contends the uptick this spring was due primarily to replacement demand rather than fleet growth. Despite the ongoing sluggishness in the freight market and a tough rates environment, driver hiring numbers have continued to climb. March was one of the strongest months over the past five years for driver hiring, according to U.S. DOT data, as carriers continue to experience elevated driver churn.
Even through the freight recession over the past three years and despite the contraction in dollar amount, NTI’s National Survey of Driver Wages shows that prevalence of sign-on bonuses hasn’t wavered, holding steady around 70%.
Prevalence of sign-on bonuses jumped in 2021 and 2022, climbing 25% from 2019. The current prevalence, 70%, has doubled since 2015.
Despite that high prevalence, sign-on bonuses efficacy as a recruiting tool, but especially as a retention tool, is questionable. They often can contribute to turnover, but at the company level and industry-wide.
Drivers often report not liking sign-on bonuses, and their structure — often paid out as a per-mile amount over several months or longer — can feel like a pay cut when that bonus runs out. They create communication friction between drivers and their fleet employers, and they also incentivize drivers to hop from one sign-on bonus to the next to feel like they’re earning the same paycheck.
However, they remain ubiquitous, in part because they’re so common, and fleets who don’t offer them feel like they have a disadvantage in recruiting marketing.
NTI has often explored in our resources alternatives to consider and to market to drivers in lieu of a sign-on bonus. With effective messaging, you can promote these incentives as winners in your recruiting programs and help promote longer-term retention among new hires.
Here are three options to invest in beyond sign-ons:
Retention incentives
Many sign-on bonuses are really just retention bonuses paid over time. So why not call them that in the first place and structure them as such? Retention incentives promote transparency, improve communication, and help drivers better understand their pay. Drivers crave clarity and transparency. And re-labeling and restructuring sign-ons to be retention bonuses allows your fleet to focus on long-term loyalty, not just staying the first few months through the sign-on payout.
Transition incentives
Rather than stretching out a bonus, offer a true upfront payment to help drivers bridge the pay gap during job changes. Transition bonuses can ease the financial burden of changing jobs and joining your company, and they send a clear message to your new hires: We appreciate and respect your decision to join our company, and we’re willing to back it up with real support.
Referral bonuses
Rewarding your current drivers with referral bonuses boosts both retention and recruiting. It signals how much you value your team and helps fill your fleet’s recruiting pipeline with drivers more likely to be qualified and quality candidates.
