sign a contract?

allnurses Guide · Jan 17, 2008

I think it seems like a good deal actually. What I mean is, at least they are giving you 90 days to see if you like the place before you sign the contract. I've never been offered a "sign on bonus" so I've never been in this situation, but I'd say just keep it in mind. If you work there 90 days and you are LESS THAN thrilled with the place, don't sign the contract.

OTOH, you could always just end up on a unit that you don't like, in which case you could always just switch units within that same hospital.

Music in My Heart · Jan 17, 2008

i recently graduated in december and currently have $15,000 in school loan debt. the hospital i am working for, which i just started working for, will pay $10,000 of my student debt if i sign a two year contract. i have to wait to sign the contract after i have been employed 90 days. some of the nurses i have talked to who do not work at hospital have said do not sign a contract. it seems like a good deal but i dont want to get trapped in a job i hate but if i stay for two years and do not sign a contract i will feel guilty. what are some opinions about this? has any one signed a contract and not regretted it?

It's a straight-up business transaction. If you'll agree to stay for two years then they'll give you $10,000 toward your loans. If you don't want to make the commitment then you'll forego the money. You need to decide how badly you need the money.

It seems like a good deal that you get 90 days to decide if you want to take the contract and the money. You should also check to see if there's a buy-out clause in the contract that would let you leave if you paid them back.

I do not understand the "...but if i stay for two years and do not sign a contract i will feel guilty." About what would you feel guilty?

Me, if it's a good offer then I'd sign the contract and take the money. Two years is not that long, even if you don't like it (at least from the perspective of a 43-year-old).

TheCommuter, BSN, RN · Jan 17, 2008

$10,000 spread out over 2 years adds up to a rather measly $2,500 every 6 months. You could earn the extra $10,000 much more rapidly, in far less time and with no commitment strings attached, by working overtime shifts.

In my honest opinion, the $10,000 sign-on bonus is not worth the indentured servitude that might follow.

marybk1968 · Jan 17, 2008

I would check on that one. In many states there are loan forgiveness programs for nursing graduates. They will forgive upto 90% of most loans with the shortage on nurses now a days. That is the route I would go before you lock yourself into a job that you may regret.

llg, PhD, RN · Jan 17, 2008

I would be sure of all the details before making any committments. When would you actually get the money? Would they give it all to you at the end of year 2 or would you get some at the beginning? etc. What happens if you leave before your 2 years is up?

Let's take a few extreme examples:

(1) If they pay you the money up front ... you could take the money and put it in a separate account and not touch it. Then it would be there for you to pay it back if you decide not to stay the full 2 years.

(2) If they give you money only AFTER you have worked the full 2 years ... and if there is no penalty for leaving early (because they haven't given you any money yet) ... then there is nothing to lose from signing the contract.

(3) If you have to pay it back WITH INTEREST if you don't fulfill your contract, that could get expensive for you if you change your mind and I would be hesitant about that.

etc.

You need to look closely at such details in order to make a truly informed decision. Be sure those details are in the contract before you sign anything.

Also ... most bonuses such as that are considered taxable income. You'll probably lose roughly 1/3 of the amount to taxes in the end. Don't forget to include that in your calculations. In a worstcase scenario, you could be paid $10,000 up front and have about $3300 taken out for taxes. That would leave you with $6,666 for you to spend. Then, if you change your mind and have to pay it back with interest, you could owe them in the neighborhood of $11,000. I wouldn't want to put myself in that situation. Check out the details first!

pagandeva2000, LPN · Jan 17, 2008

I also think that this is a decent deal, provided that you investigate, as llg suggested. I worked for my facility as an aide for 8 years, and they offered us an opportunity to become an LPN or RN with a paid leave of absence along with paid tuition and books. This meant that they would automatically employ me as an LPN upon completion of the program and passing NCLEX-PN within 6 months after graduation. Part of this contract means that I should remain there for three years, or the contract is forfeited. While I have discovered that being a nurse here leaves much to be desired, I am in familiar surroundings with people and an administration that I am familiar with. I'm getting my feet wet here, gaining experience to move on if I wish at a later date.

It seems by your post that you have the option of working 90 days to see if you wish to accept this, and that (may) be enough time for you to see if you would, in fact, make this place your home for the next two years. It may also be because they are desperate, but, if you investigate as llg suggested, you can see if it is worth your time. Be sure that while you are investigating, make friends with people that work in different departments, see if it is easy to transfer to a more preferred place and learn the behind the scenes politics before you make a decision.

Valerie Salva, BSN, RN · Jan 17, 2008

Every nurse I have ever known who has taken a sign-on bonus or loan repayment for signing a contract has regretted it, and has paid the money back to get out of their contract.

I've done it myself.

The fact that you get 90 days to decide is good, though.

Halinja, BSN, RN · Jan 18, 2008

That isn't really a bad deal. I know several of my fellow graduates that signed two year contracts for between 3,000 and 6,000.

Find out if they pay you the bonus, or if they pay the bank. If they are acquiring the loan from the bank, then it has different tax ramifications than if they just give you that much money. It can make up to a 4,000 dollar difference.

And you have the 90 days to decide if its a job you hate. So it doesn't sound like they are trying to trap you in to anything.

life_aknew · Jan 18, 2008

i would check on that one. in many states there are loan forgiveness programs for nursing graduates. they will forgive upto 90% of most loans with the shortage on nurses now a days. that is the route i would go before you lock yourself into a job that you may regret.

i agree. alot of ppl i know have done this

mom2michael, MSN, RN, NP · Jan 18, 2008

There are always reasons behind getting people to sign contracts in exchange for cash.

Only you can decide if you can tolerate the working conditions and/or reasons why they pay out that kind of money in exchange for work.

I've not know anyone yet actually be happy with a sign on bonus. It gets taxed and you see about 2/3 of it and you are trapped into a contract with said employer.