Golden Handcuffs

What is Golden Handcuffs ?

‘Golden Handcuffs’ refers to the various monetary and other benefits which an employee is provided until they stay with the company and is forfeited as soon as they leave the organization. It is provided as an incentive to stay with the company and avoid rivals from poaching the employee.

In some cases, the employees are even required to hand over the bonuses and stock options which they enjoyed while they were working with the company. These kinds of measures make sure that the employee does not leave the company easily.

As far as the company is concerned, golden handcuffs make sure that the employees do not leave the company as they have invested in the employee with training and knowledge about the daily business. Hence, losing them means that the company is taking a loss and as such, golden handcuffs are used to avoid this scenario.

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