Golden Handcuffs Meaning

The term ‘golden handcuffs’ refers to a company providing a financial incentive to retain an employee. For example, to avoid employees leaving and moving to another competitor, a company might offer one of their employees stock options, an enticing bonus, or a better retirement plan, all of which are beneficial to the employee.

By ‘placing the employee in golden handcuffs,’ the employer intends to give the employee a substantial incentive to remain in the company. Often, employers want to ensure that their team members who perform well stay. And this is when employers offer golden handcuff incentives to their team.