Definition of Golden handcuffs:
Employers invest significant resources in the hiring, training, and retaining of key employees. Golden handcuffs are intended to help employers hold onto employees that they've invested in but also to ensure that their best employees and top performers do not leave the firm. Sometimes golden handcuffs have a negative connotation as they are often associated with individuals staying at a job they are not happy in but not willing to leave because the financial loss would be significant.
Inducements offered to a key employee or a former owner to continue working with a firm. These incentives may take the form of a higher salary, added-on benefits, stock option, and/or lump sum bonus. Or they may take the form of a penalty for premature termination of the employment contract by requiring to relinquish his or her unvested stock.
Golden handcuffs are a collection of financial incentives that are intended to encourage employees to remain with a company for a stipulated period of time. Golden handcuffs are offered by employers to existing key employees as a means of holding onto them as well as to increase employee retention rates. Golden handcuffs are common in industries where highly-compensated employees are likely to move from one company to another.
How to use Golden handcuffs in a sentence?
- Incentives that can be considered golden handcuffs include large bonuses, school payments, stock options, and a company car.
- Employers offer incentives in order to retain individuals that have performed well for the company or those that have exceptional or irreplaceable skills.
- A negative connotation is often associated with golden handcuffs as they prevents people from leaving jobs they would otherwise vacate but don't because the financial loss would be large.
- Golden handcuffs are financial incentives given to employees to discourage them from leaving a company.
- These incentives come with agreements that stipulate an employee will receive them only after a certain period of employment or they will have to return them if they leave before a certain date.
Meaning of Golden handcuffs & Golden handcuffs Definition