A Golden hello is
Contents
- If the employee is worth the money
- If the payment rate is right
- Attracting talented recruitment
- Building trust between employee and new hire
- Golden Hello for academies
- Golden Hello for High ranking executives
- Additional Reading
- References
1. a generous welcome package for new employee from a rival firm to entice the employee to leave the competing company. A payment made to induce an employee to take up employment. Unlike a signing bonus, a golden hello is more likely to be extended to executive-level employees than to lower-level employees.
2. a payment from a government to an employer who takes on new staff when jobs are hard to find in a recession.
3. is more like financial incentive for graduates in STEM (science, technology, engineering and maths) subjects into teaching, in the UK.
If the employee is worth the money
A hiring company may spend millions of dollars for golden hello package. Hiring company hope the poached executive generates more benefits for them than the cost of bonuses. Following the financial crisis of 2008-2009, such compensation methods have become controversial.
If the payment rate is right
It's difficult to make the payment rate be incentive for employee. Generally, employees who are senior-level receive higher golden hello than entry-level or mid-level employees, considering the skills, experience and talent for specific positions.
Attracting talented recruitment
In a study by Aerotek and the Human Capital Institute, 46% of professionals(570) at companies said that the best way to attract senior-level employees is bonuses.
Employers can offer a one-time signing bonus or promise a specific timeline for raises to salaries.
Building trust between employee and new hire
Golden Hello build the foundation for a positive relationship between an employer and a new employee. The study “Can a Signing Bonus Motivate Effort?” indicated that trust is built between employers and new hire when employers offer signing bonuses. This is also incentive for new employers to work harder.
Golden Hello for academies
In the UK, a golden hello is financial incentive, not for executives, but for attracting graduates in STEM (science, technology, engineering and maths) into teaching in an maintained secondary school.
The scholarships, funded by Department of Education, were introduced in 2011 and are offering £30,000 for graduates with a good degree in physics, chemistry, computing or maths in 2016/17.
According to the document of National College for Teaching and Leadership, golden hello is only available to teachers "who trained through a postgraduate initial teacher training (ITT) course leading to qualified teacher status (QTS)". Teachers must meet the training, teaching and application criteria, in oder to be eligible for golden hello payment.
Golden Hello for High-ranking executives
In the United States, golden hellos are typically offered to high-ranking executives by major corporations and may be valued in the millions of dollars. They are said to have become "larger and more common" starting around the mid 1990s. Apple Company paid Angela Ahrendts, Ex-Burberry boss, $68million (approximately£40million) when she joined in 2014, which is the biggest golden hello in business history.