1. a payment made to induce an employee to take up employment from a specific employer in form of a welcome package or a payment from a rival employer to entice the employee to leave the other company.
Risks of offering Golden hello
If the employee is worth the money
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. Following the financial crisis of 2008-2009, such compensation methods have become controversial.
If the payment rate is right
It's difficult to make the payment rate be an incentive for employees. 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.
Advantages of offering Golden hello
Attracting talented recruitment
Building trust between employee and new hire
Golden Hello build the foundation for a positive relationship between an employer and a new employee. The study “Can a Signing Bonus Motivate Effort?” 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.
Golden Hello for academies
In the UK, a golden hello is financial incentive, not for executives, but for attracting graduates in STEM (science, technology, engineering and maths) into teaching in an maintained secondary school.
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)". Teachers must meet the training, teaching and application criteria, in oder to be eligible for golden hello payment.
Golden Hello for High-ranking executives
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.
- Golden boot compensation
- Golden handcuffs
- Golden handshake
- Golden parachute
- Voluntary redundancy
- Signing bonus
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- Evaluation of the Golden Hello Initiative. ISBN 1 84478 246 8.
- "Golden Hello eligibility criteria and guidance for academies (including free schools)" (PDF).
- "Bursaries and funding | DfE Get Into Teaching". getintoteaching.education.gov.uk. Retrieved 2015-11-05.
- "Scholarships Get People Into Teaching But Can't Make Them Stay". Forbes. Retrieved 2015-11-05.
- Definition of 'Golden Hello'
- Pay Without Performance. ISBN 9780674022287.
- "Pay Without Performance" (PDF).
- Golden Hello Investopedia
- Investors shooting themselves in foot with acceptance of "golden hellos" 
- Golden Hello eligibility criteria and guidance for academies( National College for teaching&leadership)
- Can offering a signing bonus motivate effort?
- Scholarship Fundings from Department of Education
- Pay without Performance
- Four Reasons Signing Bonuses are Worth the Money
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