Spot Awards: Instant Employee Recognition

Spot awards provide immediate recognition for exceptional employee performance, reinforcing company values. These awards can be monetary or non-monetary, boosting morale.

By Douglas Wade, Attorney

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Table of Contents

1. What is the definition of a spot award?

2. Examples of spot awards

3. When is the appropriate time to hand out spot awards

4. Best procedures for spot awards

What is the definition of a spot award?

Spot awards are a kind of immediate, on-the-spot recognition that employees receive for exceptional performance or behavior. There are two types of prizes: monetary and non-monetary. An effective retention tool, it serves to acknowledge and reward employees for their hard work while also reinforcing the core principles of the company.

A spot award is defined by two things:

You get the prize right now; it’s instantaneous. It would not be a spot award to recognize an employee’s performance three months later. The award is presented “on the spot,” as the word “spot” suggests.
Recognition can be monetary (in the form of a bonus, gift cards, or cash) or non-monetary (in the form of a certificate) for employees.
A well-designed spot award program will provide both monetary and non-monetary rewards.

Examples of spot awards

Examples of non-monetary spot awards

“Shout out” on social media entails publicly praising an employee on behalf of the business.
A “wall of fame” is a place to showcase employees’ outstanding achievements, whether it’s in a physical or digital setting.
Have lunch on the house—the employer might foot the bill for an employee’s lunch, for instance.
A rotating award is a great way to acknowledge an employee who consistently goes above and beyond in their work. Each week or month, a new employee can receive it.
Unplanned rewards – Providing staff with complimentary refreshments.
Host an instant virtual celebration in honor of a group or an individual’s success among remote employees.
Company swag refers to the practice of providing employees with branded merchandise, such as a notepad, hoodie, or coffee cup.

Examples of monetary spot awards

Gift card—An appropriate gift card for a specific retail, travel, or food establishment.
An immediate monetary bonus given to the worker.
Paid vacation leave—We’re giving you an extra day off!

When is the appropriate time to hand out spot awards

You might want to give a spot award for the following actions:

Crossing any obstacles to assist a client or finish a task.
Putting an original plan into action to address an issue.
Taking charge of a job on your own.
Displaying one of the organization’s ideals consistently.
Helping a friend who is having trouble.

Best procedures for spot awards

Avoid unhealthy levels of competition by implementing a spot award program that is both consistent and fair.
You shouldn’t count on it to replace your annual bonus checks.
Get your name out there. Put simply, give it a lot of attention. Sharing an employee’s pride in receiving a spot award with a bigger group will make it even more meaningful.
Think about using platforms that facilitate communication and recognition within an organization, such as email and social media.
Provide the resources that line managers need to know how to use spot awards effectively.
Do not repeatedly provide it to the same worker.
Make sure that you explain how spot rewards work clearly.
Establish a cutoff point so that management may check if the awards are within budget.

Have a quick question? We answered nearly 2000 FAQs.

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