Golden Handcuffs | Meaning and Definition

 

What is a golden handcuff?

Golden handcuffs are a special provision offered to the employees of an organization who contributes their effort and knowledge for the organization to improve the growth rate. The provision may be financial or non-financial benefits to attract the employees, thus retaining them in the organization and not switching their jobs to other organizations.

Why is a golden handcuff important?

Golden handcuff plays a vital role in retaining the employees in the organization. Hiring a new candidate who suits the appropriate job role is not an easy task. A better way to avoid this is to find ways to retain the existing employees in their organization, and this, in turn, enhances the growth of the organization.

Why should you implement Golden Handcuffs?

A happy employee will be the result of a golden handcuff. If an employer provides appropriate bonuses or incentives to the employees, the employees working in the organization feel acknowledged. This gets reflected in the organization in terms of increased productivity.

What are the benefits of implementing Golden Handcuffs?

  • The chance of employee turnover gets reduced appropriately with the golden handcuff.
  • The organization will increase the retention of customers.
  • The organization can see the dedicated employees.
  • A very healthy work environment can be seen.

The golden handcuffs can be seen at the senior management level, a high performer in an organization, an employee with specialized skills in a particular domain, and much more.