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Golden hello

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Inaccountingandcontractual law,"golden hello"is a term used for several different arrangements:

  1. A payment made to induce an employee to take up employment from a specific employer[1]in form of a welcome package[2]or a payment from a rival employer to entice the employee to leave the other company.[3]
  2. A payment from a government to employer (private company) during aneconomic recessionwho takes on new staff, usually superfluously, whenjob openingsin general are scarce.[2]
  3. In theUnited Kingdom,a financialincentive[4]for graduates inscience, technology, engineering, and mathematics(STEM) who are pursuing a career in teaching.[5]

Risks and advantages[edit]

If the employee is worth the money[edit]

A hiring company may spend millions of dollars for a golden hello package,[3]hoping the poached executive generates more benefits for them than the cost of bonuses.[3]Following the financial crisis of 2008–2009, such compensation methods have become controversial.[6]

If the payment rate is right[edit]

It's difficult to make the payment rate be an incentive for employees.[7]Generally, employees who are senior-level receive higher golden hellos than entry-level or mid-level employees, considering the skills, experience and talent for specific positions.[7]

Attracting talented recruitment[edit]

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.[8][9]Employers can offer a one-time signing bonus or promise a specific timeline for raises to salaries.[9]

Building trust between employee and new hire[edit]

Golden Hello build the foundation for a positive relationship between an employer and a new employee.[9]The study indicated that trust is built between employers and new hire when employers offer signing bonuses.[10]This is also incentive for new employers to work harder.[10]

Golden hello for academies[edit]

In theUK,a golden hello is financial incentive,[11]not for executives, but for attracting graduates inSTEM[5](science, technology, engineering and maths) into teaching in a maintained secondary school.[12]

The scholarships, funded byDepartment of Education,were introduced in 2011 and are offering £30,000[13]for graduates with a good degree in physics, chemistry, computing or maths in 2016/17.

According to the document ofNational 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)".[12][14]Teachers must meet the training, teaching and application criteria, in order to be eligible for golden hello payment.[12]

Golden hello for high-ranking executives[edit]

In theUnited States,golden hellos are typically offered to high-ranking executives by majorcorporationsand may be valued in the millions of dollars.[15]They are said to have become "larger and more common" starting around the mid-1990s.[16][17]

Further reading[edit]

References[edit]

  1. ^Law, Jonathan (29 April 2010).A Dictionary of Accounting.ISBN9780199563050.
  2. ^ab"Golden Hello - Definition of Golden Hello - QFINANCE".www.financepractitioner.com.Retrieved2015-11-04.[permanent dead link]
  3. ^abc"Golden Hello Definition | Investopedia".Investopedia.Retrieved2015-11-04.
  4. ^"Golden Hello eligibility criteria and guidance for academies"(PDF).
  5. ^ab"Scholarships Get People Into Teaching But Can't Make Them Stay".Forbes.Retrieved2015-11-04.
  6. ^"Golden Hello - Investing Dictionary".byforex.com.Archived fromthe originalon 2016-06-25.Retrieved2015-11-04.
  7. ^ab"4 Reasons Signing Bonuses Are Worth the Money".Entrepreneur.3 February 2015.Retrieved2015-11-04.
  8. ^"Recruiting Top Talent Survey"(PDF).Archived fromthe original(PDF)on 2016-03-04.Retrieved2015-11-05.
  9. ^abc"4 Reasons Signing Bonuses Are Worth the Money".Entrepreneur.3 February 2015.Retrieved2015-11-05.
  10. ^abChoi, Willie (2013-10-24). "Can Offering a Signing Bonus Motivate Effort? Experimental Evidence of the Moderating Effects of Labor Market Competition".SSRN1910237.
  11. ^Hopwood, Vicky (2004).Evaluation of the Golden Hello Initiative.ISBN1-84478-246-8.
  12. ^abc"Golden Hello eligibility criteria and guidance for academies (including free schools)"(PDF).
  13. ^"Bursaries and funding | DfE Get Into Teaching".getintoteaching.education.gov.uk.Retrieved2015-11-05.
  14. ^"Scholarships Get People Into Teaching But Can't Make Them Stay".Forbes.Retrieved2015-11-05.
  15. ^Definition of 'Golden Hello'
  16. ^Bebchuk, Lucian A.; Fried, Jesse M. (2006).Pay Without Performance.ISBN9780674022287.
  17. ^"Pay Without Performance"(PDF).

External links[edit]

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