What is a spot bonus?

Question

Zippia Team · Accepted Answer

A spot bonus is an unexpected and immediate incentive bonus awarded to an employee for accomplishments that are not measured by certain standards or metrics. Spot bonuses are typically given to employees as a reward for their performance.

In general, most organizations only give spot bonuses to entry-level or mid-level employees, not to managers, supervisors, or other roles associated with upper-level management. Spot bonuses are normally given to one employee versus a team of employees.

Spot bonuses can come in the form of monetary compensation, typically ranging from $50 to $5,000, and sometimes more. Spot bonuses can also be given in the form of vacation packages that cost in the range of this same average. Spot bonus incentives typically offer around 1% of payroll and are normally provided to 25% of eligible employees.

Spot bonuses are sometimes given multiple times during one year to the same employee if their performance has been deemed exceptional.