What is the golden hello?

"Golden Hello" concerns cash and other incentives offered to persuade a business manager or employee to leave a position with one company and apply for another. Golden Hello packages offered to prominent executives can be worth millions of dollars. In 2010, Nokia® paid more than $ 6 million USD (USD) to attract former Executive director Microsoft® Stephen Elop as the position of CEO in Nokia®.

The attraction of successful executives outside the competing companies is done with the belief that the competitor will lose an experienced executive and the offering motivation company gains the advantage by bringing the same experienced person on board. Golden Hello is a testimony to the belief that the talented guidance in the meeting room is decisive for achieving and maintaining a competitive advantage. Companies can also experience employees who have skills that are highly in demand. This can happen regardless of whether these companies compete in the same market. SkillSti, which has The., The individual can cost much more than incentives offered in Golden Hello.

Incentives offered to employees and corporate officers working for competitors are not exclusive for large companies. The individual can also be admitted to the value of the relationships that the person established in the industrial niche. For example, a car dealer may have an extensive list of past clients and will bring this accumulated relationship capital of the new company. Golden Hellos often offers companies in the financial industry and hope to use the expertise of a financial expert with a proven resulting results in the area of ​​investment strategy or sales skills.

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offer Golden Hello is a relatively common occurrence in the technological sector. The reason is the speed of technological progress and intensive competition that brings innovative products to the market. By tapping the Experience of Executive Director who hasSuccessful innovations can allow the company to get a new market share and move before its competition.

Gold handshake or gold parachute, as is also called, concerns the contractual obligation of the company to pay the executive or employee compensation if terminated. This is also referred to as the end of the end or severance pay. When an individual is hired, a golden handshake can be negotiated or can be set through a corporate policy. The Golden Boot concerns incentives offered by employees who decide to retire prematurely and can be used to reduce the number of forced reductions when companies are forced to reduce the size.