Golden Handcuffs

What Are Golden Handcuffs?

Golden handcuffs refer to any financial rewards or privileges tasked by an organization to keep a valuable employee attached, making it hard for her/him to leave the job. 
The causes of this are also motivators that include the amount of bonuses, stock options, or remuneration based on the duration of the employee. These advantages are all they have, but there is a possibility that they are becoming too comfortable for people who would be in the position of taking new chances or good career options.

Even if they are unhappy or refrain from the challenges, employees may find it difficult to leave the salaries which they received especially if the economy is facing a downturn or stagnation. Do not promote talent migration and new perspectives with golden handcuffs; instead, give enough motivation for organizational creativity and flexibility. A bright handcuff can be avoided. Employers will have to team up the financial reward with a decent working culture and professional growth.

Example Of Golden Handcuffs

Investment banks pay top performers large incentives and stock options, a type of golden handcuffs. Employee tenure determines these incentives, which are many times the basic income. The firm may provide an investment banker a large signing bonus, yearly performance-based incentives, and stock awards that vest over many years. These financial incentives may attract brilliant employees and drive them to work well but may also develop financial reliance. Fear of losing unvested incentives or stock options may prevent employees from leaving their current jobs, even if they have better prospects. Thus, they may feel forced to remain longer than they want, leading to burnout or work dissatisfaction.