The golden handcuff and other sob stories

According to Aditya Narayan Mishra, MD CEO, CIEL HR, organisations must tread carefully when using financial incentives as a retention strategy. “Competitive pay, bonuses, stock options, and other financial incentives can undoubtedly attract and retain talent. However, if these come at the cost of work-life balance, mental well-being, or a toxic work culture, employees may struggle to perform at their best,” he says.

Saumitra Chand, career expert at global hiring platform Indeed, says that golden handcuffs can only be effective when paired with a fulfilling work environment. “Golden handcuffs—whether in the form of high salaries, stock options, or exclusive benefits—are powerful tools for retention, but their true impact is maximised when paired with a fulfilling work environment,” he says.

For Natasha Singh, Vice President of People and Culture at EMotorad, the issue is particularly acute for senior-level executives. “For senior folks, the stakes are much higher in terms of money and time invested in recruitment, training, relocation, adjustment with teams, and more. To safeguard the interests of both parties, options like bonuses, stock, and retirement incentives are taken into account, keeping in mind short- and long-term visions,” she explains.

Sonal Arora, Country Manager at GI Group Holding, emphasises that while golden handcuffs can be effective in preventing talent attrition, particularly in critical roles or during transitions, financial incentives alone are not a sustainable solution. Relying solely on financial incentives won’t ensure
long-term commitment. A lack of positive work culture and meaningful growth opportunities can result in disengaged employees who stay purely for financial reasons rather than job satisfaction.

“This lack of emotional connection to the workplace can ultimately impact productivity, innovation, and overall team morale, reducing the efficacy of any long-term incentive policy,” she explains.