What is a spot bonus?

A spot bonus is a form of recognition and reward given to employees for exceptional performance, going above and beyond their regular job duties, or achieving specific goals or milestones. Spot bonuses are typically given on the spot or shortly after the performance or behavior that merits recognition, rather than as part of an annual bonus or formal compensation review process.

Spot bonuses can take many forms, including cash bonuses, gift cards, extra paid time off, or other non-monetary rewards. They are often used by employers to incentivize and motivate employees, boost morale, and reinforce positive behaviors.

Spot bonuses are typically discretionary and may be given out by managers or supervisors based on their judgment of an individual's performance. They can be a powerful tool for recognizing and rewarding exceptional contributions and fostering a culture of recognition and appreciation in the workplace.