Golden hello

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A Golden hello is

1. a generous welcome package[1] for new employee from a rival firm to entice the employee to leave the competing company.[2] A payment made to induce an employee to take up employment.[3] Unlike a signing bonus, a golden hello is more likely to be extended to executive-level employees than to lower-level employees.[2]

2. a payment from a government to an employer who takes on new staff when jobs are hard to find in a recession.[1]

3. is more like financial incentive[4] for graduates in STEM (science, technology, engineering and maths) subjects into teaching,[5] in the UK.

Risks of offering Golden hello[edit]

If the employee is worth the money[edit]

A hiring company may spend millions of dollars for golden hello package.[2] Hiring company hope the poached executive generates more benefits for them than the cost of bonuses.[2] 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 incentive for employee.[7] 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.[7]

Advantages of offering Golden hello[edit]

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 “Can a Signing Bonus Motivate Effort?[10]” 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.[10]

Golden Hello for academies[edit]

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

The scholarships, funded by Department 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 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)".[12][14] Teachers must meet the training, teaching and application criteria, in oder to be eligible for golden hello payment.[12]

Golden Hello for High-ranking executives[edit]

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.[15] They are said to have become "larger and more common" starting around the mid 1990s.[16][17] Apple Company paid Angela Ahrendts, Ex-Burberry boss, $68million (approximately£40million) when she joined in 2014,[18] which is the biggest golden hello in business history.[18]

Additional Reading[edit]

References[edit]

  1. ^ a b "Golden Hello - Definition of Golden Hello - QFINANCE". www.financepractitioner.com. Retrieved 2015-11-04. 
  2. ^ a b c d "Golden Hello Definition | Investopedia". Investopedia. Retrieved 2015-11-04. 
  3. ^ A Dictionary of Accounting. ISBN 9780199563050. 
  4. ^ "Golden Hello eligibility criteria and guidance for academies" (PDF). 
  5. ^ a b "Scholarships Get People Into Teaching But Can't Make Them Stay". Forbes. Retrieved 2015-11-04. 
  6. ^ "Golden Hello - Investing Dictionary". byforex.com. Retrieved 2015-11-04. 
  7. ^ a b "4 Reasons Signing Bonuses Are Worth the Money". Entrepreneur. Retrieved 2015-11-04. 
  8. ^ "Recruiting Top Talent Survey" (PDF). 
  9. ^ a b c "4 Reasons Signing Bonuses Are Worth the Money". Entrepreneur. Retrieved 2015-11-05. 
  10. ^ a b Choi, Willie (2013-10-24). "Can Offering a Signing Bonus Motivate Effort? Experimental Evidence of the Moderating Effects of Labor Market Competition". Rochester, NY. SSRN 1910237Freely accessible. 
  11. ^ Evaluation of the Golden Hello Initiative. ISBN 1 84478 246 8. 
  12. ^ a b c "Golden Hello eligibility criteria and guidance for academies (including free schools)" (PDF). 
  13. ^ "Bursaries and funding | DfE Get Into Teaching". getintoteaching.education.gov.uk. Retrieved 2015-11-05. 
  14. ^ "Scholarships Get People Into Teaching But Can't Make Them Stay". Forbes. Retrieved 2015-11-05. 
  15. ^ Definition of 'Golden Hello'
  16. ^ Pay Without Performance. ISBN 9780674022287. 
  17. ^ "Pay Without Performance" (PDF). 
  18. ^ a b "Revealed: Ex-Burberry boss Angela Ahrendts handed a $68million 'golden hello' after joining Apple". 

External links[edit]