spot award

A spot award is a spur-of-the-moment employee recognition for employee performance and exemplary behavior as and when it happens. The prize can be both monetary and non-monetary. It is used as a retention tool to let employees know their efforts have been recognized and reinforce the organization’s values. 

The two characteristics of a spot award are:

• It is instant – The award is given at the moment. Recognizing an employee three months after their performance would not be considered a spot award. The word spot indicates the award is given “on the spot.” 
• Monetary and non-monetary – Employees can receive non-monetary recognition (such as a certificate) or monetary (cash, bonus, gift certificates, etc.)

A good spot award program has a balance between monetary and non-monetary incentives.