In accounting and contractual law, "golden hello" is a term used for several different arrangements:
A hiring company may spend millions of dollars for a golden hello package, hoping the poached executive generates more benefits for them than the cost of bonuses. After the 2008 financial crisis, such compensation methods have become controversial. [5]
It's difficult to make the payment rate be an incentive for employees. [6] 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. [6]
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. [7] [8] Employers can offer a one-time signing bonus or promise a specific timeline for raises to salaries. [8]
Golden Hello build the foundation for a positive relationship between an employer and a new employee. [8] The study indicated that trust is built between employers and new hire when employers offer signing bonuses. [9] This is also incentive for new employers to work harder. [9]
In the UK, a golden hello is financial incentive, [10] not for executives, but for attracting graduates in STEM [4] (science, technology, engineering and maths) into teaching in a maintained secondary school. [11]
The scholarships, funded by Department of Education, were introduced in 2011 and are offering £30,000 [12] 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)". [11] [13] Teachers must meet the training, teaching and application criteria, in order to be eligible for golden hello payment. [11]
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. [14] [15]