How can I add an image to outlook 2016 email signature?

As workaround, you can perform the same action to by formatting the image onset of applying it on your e-mail signature.

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Hello Steve,

Welcome to Microsoft Community.

You can add an image to a Signature in Outlook 2016.

Follow these steps:

1. In Outlook 2016 click on File > Options > Mail > Signatures.

2. Click on the New button.

3. Start creating your signature.

4. You can add an image/picture by clicking on the button right next to the Business Card option.

For additional information you may also refer to the following Microsoft Article:

https://support.office.com/en-us/article/add-a-signature-to-messages-8ee5d4f4-68fd-464a-a1c1-0e1c80bb27f2

Check the above and let us know if it helps.