Nearly 54 percent of the employers responding to the annual survey said they will use signing bonuses to sweeten the deal for potential hires. That’s a sizable increase over the 47 percent of respondents who reported that they expected to offer bonuses in 2007.

Moreover, NACE studies suggest that employers tend to underestimate their need to use signing bonuses.

“Last year, approximately 47 percent of employers said they planned to offer signing bonuses; ultimately, more than 54 percent used them. Similarly, in NACE’s 2006 survey, 44 percent of employers expected to offer bonuses, and 47 percent ended up doing so,” says Marilyn Mackes, NACE executive director.

If that pattern holds, more than 60 percent of employers could use signing bonuses to attract and hire 2008 graduates.

Also underscoring the level of competition employers face: The size of the average bonus has increased. Among respondents who plan to offer a bonus to all entry-level college hires, the average signing bonus is $4,450—up 25 percent from last year’s average of $3,568. However, two-thirds of those using bonuses expect to offer them to just selected candidates, and average bonus offers vary according to a number of factors, including the candidate’s degree and degree level.

About the Job Outlook 2008 survey: NACE surveyed 1,199 of its employer members from mid-August through October 5, 2007. Two hundred and seventy-six (276), or 23 percent, responded. Of those responding, 48.2 percent were service sector employers, 46.4 percent were manufacturers, and 5.4 percent were government/nonprofit employers. By region, 34.8 percent of respondents were from the South, 26.4 percent were from the Midwest, 21.4 percent were from the Northeast, and the remaining 17.4 percent were from the West.

NACE monitors the job market for new college graduates throughout the academic year via a series of surveys and reports; NACE expects to release another update on the job market for the Class of 2008 in April.

Courtesy of NACE: Since 1956, the National Association of Colleges and Employers (NACE) has been the leading source of information about the employment of college graduates. NACE maintains a virtual press room for the media at www.naceweb.org/press/.