Definition Definition

Spot Bonus

Definition (1):

Spot Bonus is a spontaneous incentive awarded to individuals for accomplishments not readily measured by a standard.

Definition (2):

Spot bonuses are most commonly used to provide special recognition to an employee and/or reward employee performance that is considered “above and beyond”. “ Most of the employees are eligible for this bonus. But officials in the top management are less likely to be eligible for this bonus. Top management and executives are qualified in only 59% and 41% of organizations, while other levels of employee groups are qualified in 85% to 98% of participating organizations.

These bonus awards have a range. The forms of achievement and behavior that can result in these bonuses are very much more different than the other types of bonus programs. Large awards are also common. The maximum amount of 30% to 40% spot bonus award for officials below top management is between $2,500 and $7,500.

Definition (3):

These bonuses are awarded to individuals only, not to teams. Administrators working at the senior level, non-classified posts are not qualified for this bonus. Anyone from an employee’s supervisory chain of command can start the process of nomination for this bonus award.

Share it: CITE

Related Definitions

  • Bonus
    Bonus incentive money paid to employees in addition to their...
  • Zero-based bonus
    Zero-based bonus is a plan design feature that establishes a...
  • Retention bonus
    Retention bonus is an incentive payment used to entice employees...
  • Discretionary bonus
    Discretionary bonus is a form of variable pay where an...
  • Bonus plan
    Bonus plan is an incentive pay plan which awards employees...