ARTICLE · 16 FEBRUARY 2023

Spot Bonus – Fad Or Serious Alternative?

Kienbaum

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Rewarding employees spontaneously during the year promotes their intrinsic motivation. For issue 1 / February 2022 of COMP & BEN Magazine, our compensation specialists have compiled some rules for effective success.

GermanyEmployment and HR

Hans-Carl Von Huelsen

Rewarding employees spontaneously during the year promotes their intrinsic motivation. For issue 1 / February 2022 of COMP & BEN Magazine, our compensation specialists have compiled some rules for effective success.

The spot bonus is enjoying increasing popularity as an element in the monetary reward portfolio of many companies. In practice, countless forms of spontaneous rewards can be found, ranging from small recognition to high, considerable one-time payments. In order for the spot bonus to have a sustained positive effect as a reward instrument, it needs to be clearly positioned in the incentive portfolio and be awarded in a transparent and comprehensible procedure. The spot bonus must be well balanced without counteracting the control effect of other compensation components.

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