Golden Handcuffs

A collection of financial incentives that serves the purpose of encouraging employees to remain with a company for a stipulated time period is called as golden handcuffs. This type of incentives is offered by employers to their existing employees to hold onto key employees and also increase the rates of employee retention. 
Golden handcuffs are commonly used in industries where employees who are highly-compensated are likely to move from one company to another like that in IT or hi-tech industry where skill sets are in demand.

Employers invest their time and resources in hiring, training and retaining key employees and such incentives work in order to reap positive results for their investment. Other forms of golden handcuffs include a contractual obligation which specifies an action that may or may not be performed by an employee. For instance, a contract that forbids a TV host from appearing on a competing channel, and Supplemental Executive Retirement Plans (SERPS) which are funded by the employer entirely.

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