UPMC to take away RN sign on bonuses effective 2-29-08

Altra, BSN, RN · Jan 14, 2008

Word to the wise ...

You must realize that sign-on bonuses of any kind are always a short-term "solution" to a "problem" of recruitment and are never guaranteed.

They are also doled out in increments, with taxes withheld off the top. That is to your advantage: student loans and other debts can be financed but the IRS does not wait, come April 15.

Choosing a job based on the amount of sign-on bonus significantly ups the possibility that you will find yourself unhappy in that job long before the bonus/time commitment is finished.

If UPMC is enhancing education benefits for its employees, this is a positive step toward retention of nurses.

cardiacRN2006, ADN, RN · Jan 14, 2008

And retention SHOULD be more important to you then recruitment. Hospitals can and will do whatever it takes to get you in the door, but once you are there you are stuck. Best if you like where you work.

dorselm · Jan 15, 2008

You're right, the sign on bonus definitely is not the deciding factor that determines where I work. However, its not like some hospitals have them and some don't, they all had them and you were guaranteed a nice bonus when you start no matter where you went and knowing that there won't be any anywhere is kinda depressing.

ohmeowzer RN, RN · Jan 15, 2008

sign on bonuses come and go... i think you should look into other things like nurse to pt ratios.. at my hospital we have lovely yearly retention bonuses.. which don't go away... and if they do take my retention bonus away.. i'll cry..lol... i wish you the best of luck in school and please keep us posted..

imenid37 · Jan 15, 2008

:angryfire After class today, I happened to look at the poster board situated outside of my classroom and I saw an interesting flyer, which apparently no one else took the time to read. It said "We have some exciting changes happening to UPMC, effective Feb 29th, UPMC (only the biggest healthcare system in Western Pennsylvania) is doing away with their sign on incentive bonus for new hire RNs. Instead they will focus on putting their dollars toward formal education and helping nurses to enhance their careers. I asked my instructor about this because I thought I was misreading it and she said she heard something about it but wasn't sure. She said the reason being is that they found that nurses were getting the $8-10-12K bonuses, working their 2 yr commitment and then quitting and going to another UPMC facility and getting another bonus. When I got home I called a nursing recruiter and asked about the specifics and she said it is true that UPMC will be doing away with the sign on bonus. I said well what incentive will they offer to come to their facility and she said hopefully they will see that the hospitals are good environments to work at and that will attract new nurses. You wanna talk about PO?!?!?!?!? I graduate Dec 08 and there will be no bonus to offset these loans that I took out to help me get through school!!!!!!!

It is important to keep experienced staff and I salute their responsibility. We need experienced staff to pass on the torch to the new hires and give a quality orientation. All of our nursingstaff are valuable. I wish our facility would look at retention. If you have a PHEAA loan, there may still be some form of loan forgiveness available to you if you stay in PA. Best of luck to you.

Altra, BSN, RN · Jan 15, 2008

However, its not like some hospitals have them and some don't, they all had them and you were guaranteed a nice bonus when you start no matter where you went and knowing that there won't be any anywhere is kinda depressing.

Are you considering UPMC hospitals the only employment in the Pittsburgh area?

Good luck to you as you finish school and begin your nursing career.

wonderbee, BSN, RN · Jan 15, 2008

A sign on bonus may look good now, but when you're a few months in and have discovered you are in hell, that bonus becomes a noose around your neck. It is a loan. Think "loan" with promissory note, interest, penalties, etc. if you decide pastures are greener elsewhere. They want it back in a lump sum. It's their stamp of indentured servitude on your new life as an RN. They own you and half of SW PA. Do you really want that?

angel337, MSN, RN · Jan 15, 2008

i think their rationale for not giving sign on bonuses is acceptable. as a new grad, of course its nice to see the extra money, but its more important that they retain nurses in the long run. also there is a trend in nursing in relation to the economy. when the economy is bad (like now) the nursing shortage lessens. hospitals feel they can be choosy so they take advantage of it. nursing jobs are more competitive now (depending on where you live of course) and hospitals are not as desperate like they were 5-7 years ago. i work for a magnent hosp in chicago and its very hard to get a job there. most new grads that try to get employment there will settle for a less desirable specialty just to get in because if its great reputation and excellent benefits.

fins · Jan 15, 2008

Don't believe their explanation. UPMC makes a ton of money, so it isn't like they have to choose between sign-on bonuses and retention tools. If they were having trouble signing on nurses, they'd still keep the bonuses in place. The simple fact is that they're doing away with those bonuses because they think that they can get enough new nurses without them.

It's part of the ebb and flow of nursing staffing. A few years ago, there was a short term shortage of new hires, so in came the bonuses. Then, pretty much every school ramped up their enrollment, the one-year BS-RN programs started, so now there are enough new GN's every year that the hospitals in some areas don't think they need to entice them in. So no more sign on bonus.

The bit about redirecting the accession money to retention is just self-serving crap put out by the hospital to make it sound like they're still looking out for nurses.

At the hospital where I work, two years ago, the OR's were so desperate for nurses that they'd take anyone - GN's, nurses from other disciplines, and train them. Now, their numbers are fatter, and they're only taking OR nurses with experience.

It's always a numbers game, and it's always a SHORT TERM numbers game. The demographics of this country haven't changed, so the upcoming mismatch between number of nurses and number of nurses needed hasn't changed. But for now, UPMC is just looking at how many new nurses they have to get through the door this year, and they've decided that they can reach that number without putting out bonuses.

Sunflower3 · Jan 15, 2008

Dorselm,

Just to let you understand a bit more about sign-on bonuses: they take a 49% Federal Luxury tax on these bonuses, so you will start out with only 51% of the promised bonus. Then, the rest of the bonus is taxed at the regular rate, just like the rest of your earnings. So you WILL NOT end up with what they promise. This is per my actual experience with these sign-on bonuses, and I tell everyone that inquires about bonuses not to be swayed by a 'bonus'.

A friend of mine considered a job with a 10K bonus, and, after she did the math, (taxes, time frame, shift hours, etc.) she would actually have taken a .25 cent per hour LOSS from her current position! So it's my opinion that companies think most nurses aren't smart enought to 'do the math' and figure these things out, and just see the words 'SIGN ON BONUS' and want to immediately take the job. In fact, companies that have to do this to get people to come to work for them usually have a poor work environment, which is why there are positions available-the nurses left the positions!!!

Instead, you should be considering the environment-ratios, type of work, how long others have been there and if they look super stressed, etc, when taking a tour of the unit before you take the job!

Hope this helps,

UnitRN01

wonderbee, BSN, RN · Jan 15, 2008

Just as an aside, this region is not experiencing a shortage to the same degree as others. I've heard it said that Pittsburgh is near saturation. With UPMC holding over 50% of the medical card deck, why offer them?