When your workers go the extra mile to do the best job they can, it’s a good idea to reward them for their hard work. One great way to do this is by giving spot bonuses. Whether you offer these unplanned incentives in the form of money or benefits like time off or gift cards, they can significantly increase employee engagement, morale, and satisfaction without breaking the bank.
But like any incentive program, there’s a right way and a wrong way to implement spot bonuses in your workplace. Keep reading for a list of tips that can help your spot bonus program soar.
1. It Should Literally Happen On The Spot
One of the great strengths of spot bonuses is that they allow you to reward good employees almost immediately for doing a great job. And that’s the point–it should happen on the spot. By waiting, the excitement wanes and you’ll likely not be able to have the same significant impact.
Fortunately, creating a positive spot bonus program is simple. Just set up a dedicated supply of pre-approved currency or gift cards ahead of time. That way, you’ll be able to avoid red tape getting in the way of your efforts to provide bonuses real time.
2. Spot Bonuses Are Not For Execs
While spot bonuses can be a powerful motivator for many of your employees, that isn’t necessarily the case for people in the highest ranks of your business.
Let’s say you wanted to give out a relatively large spot bonus of $500. Offering that bonus to a low-level hourly employee or somebody working in middle management is likely to have the intended effect on morale. On the other hand, an executive who already makes six figures may be less inclined to appreciate the extra cash.
Additionally, it can be looked at as leaders rewarding leaders which can do the opposite for morale. Take this opportunity to reward those that are often unseen and working their way up.
3. There Should Be Different Tiers
Some clothing items are “one size fits all,” but that’s not the case for a good spot bonus program. Employees at your office succeed in ways both big and small every day. If you’re going to reward them for these successes, be sure your incentives are flexible enough to meet varying situations.
Generally speaking, spot bonuses begin at the $50 mark. That sum would be an appropriate reward for someone who puts in some extra effort on behalf of a customer or demonstrating how to be a stellar team player.
Other spot bonuses might be planned. For instance, you could give spot bonuses to employees who help train a new hire or complete an important project while hitting a tight deadline. A bonus in the $100-$500 range would be more fitting in cases like these.
4. It Must Be Focused on Results
A spontaneous bonus program is a successful spot bonus program. You should give out spot bonuses in response to good behavior from employees instead of a sense of obligation. Spot bonuses aren’t an “employee of the month” program, and shouldn’t be handled like one.
Imagine your company has a $6,000 annual budget for spot bonuses. That means you should expect to give out this amount in spot bonuses each year, right? Wrong–instead, you might distribute barely any spot bonuses one year and max out your budget the year after. By going with the flow, you can build a truly rewarding spot bonus program.
5. Restrict the Spot Bonuses
Another way to make your spot bonus program rewarding is to make it somewhat exclusive. Spot bonuses are supposed to feel “special,” after all–and that means not everyone in your office can or should get them. Instead, limit spot bonuses to 5-25% of your staff.
On the flip side, you shouldn’t give multiple spot bonuses to a few star employees. That’s an easy way to convince the rest of your staff that you’re playing favorites, which will torpedo morale in the workplace before you know it.
Be Prepared to Be On The Spot
Sometimes, even the best spot bonus initiative might not be enough to keep employee morale high at your company. In these situations, it pays to talk to experts in the business and recruiting fields–experts like the team at PeopleAK.
PeopleAK’s data-driven approach to consulting can help your business cut down on ambiguity and find a clear path forward. They know that one-size-does-not-fit-all, which is why they cultivate tailored advice and guidance for your business and industry.
Ready to cultivate a more positive engaged workplace?