Golden Handshake

A golden handshake is a severance package that is offered to an employee who is being laid off or fired. The package typically includes a lump sum payment, as well as continued health insurance coverage and other benefits.

The term "golden handshake" is often used in the context of corporate layoffs, when a company is downsizing and needs to reduce its workforce. In these cases, the golden handshake is seen as a way to help the laid-off employees transition to new jobs.

The size of the golden handshake will vary depending on the employee's position and tenure with the company. However, it is typically a significant amount of money, and can be enough to cover several months of living expenses.

In addition to the financial benefits, the golden handshake may also include other perks, such as continued access to the company's gym or daycare center. These perks can be helpful for laid-off employees who are trying to adjust to their new financial situation.

The golden handshake is a controversial practice. Some people believe that it is unfair to give laid-off employees a large sum of money, while other people believe that it is a necessary way to help employees transition to new jobs.

Ultimately, the decision of whether or not to offer a golden handshake is a decision that each company must make for itself. However, it is important to weigh the costs and benefits of the practice before making a decision.

Here are some of the pros and cons of offering a golden handshake:

Pros:

• The golden handshake can help to ease the financial burden of being laid off.
• It can help to retain key employees who might otherwise leave the company.
• It can help to improve the company's reputation and make it more attractive to potential employees.

Cons:

• The golden handshake can be expensive for the company.
• It can create resentment among employees who are not being laid off.
• It can send the wrong message to employees, suggesting that the company is not committed to its employees.

Whether or not to offer a golden handshake is a complex decision. There is no right or wrong answer, and each company must make the decision that is best for its own situation.