A special provision of financial or non-financial benefits offered to employees who contribute exceptional knowledge and skills to the company is called golden handcuffs. It is provided with the motive of attracting and retaining such employees from joining other companies.
Golden Hancuffs has a vital role in the improvement of employee retention. It is sometimes difficult to hire the candidates that have required skills for the vacant job role. So, to reduce the risk of loosingt talented employees golden handcuffs should be implemented. These enhance the growth of a company as it aligns the intrests of both the employee and the employer.
Golden handcuffs are put on an employee when the employer provides them better incentives, career advancements and bonuses.
Every organization needs to retain their employees. To retain the employees the employer recognizes their work and rewards them. Such term is referred to as ‘golden Handcuffs’.
When the employer gives the employees incentives and bonuses, they feel acknowledged. As a result, the employees become dedicated towards the work and the organizational productivity increases.
It should be executed in an workplace because;
Golden Handcuffs is an employee retention strategy normally used for the senior management of an organization, Highly performing employees or the employees with specialized skills. The employees with a different level of understanding which promotes growth and the strategies to implement in the workplace are given more importance.