Golden Handcuffs

What are Golden Handcuffs?

Golden handcuffs are 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.

For example,

• A company's exceptional performing marketing manager is thinking of resigning.
• This was because he received an offer from another company ready to pay him more.
• The management discussed the issue and decided to offer significantly higher pay.
• The marketing manager accepted the offer and continued working for the same company.
• Company golden handcuffed to retain the manager.

Why Implement Golden Handcuffs?

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.

Frequently Asked Questions

Why is the bonus known as Golden Handcuffs?

Every organization needs to retain their employees. To retain the employees the employer recognizes their work, provides a bonus and rewards them. Such a situation can be referred to as ‘golden Handcuffs’.

What is the impact of 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.

Why should Golden handcuffs be executed?

It should be executed in an workplace because;

• Reduces the chances of employee turnover
• Increases customer retention
• Employees become dedicated towards their work
• Workplace environment becomes healthier

What are the areas in which the golden handcuffs are used?

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.