Pay · HR glossary

Spot Awards

Spot awards are immediate or near-immediate rewards for a specific contribution, rather than payments made through a regular review cycle. They can be monetary or non-monetary.

Example

A manager gives an approved one-off award to an employee who resolved a serious operational problem and records the contribution and award amount.

What to keep in mind

Set approval limits and consistent criteria. Consider tax and payroll treatment where relevant, and avoid using spot awards to compensate for ongoing responsibilities that should be reflected in normal pay.

Further reading

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