Sample Spot Recognition Programs

Sample_Documents

DISCLAIMER: This is a sample template provided for informational purposes only. It does not constitute legal, tax, or financial advice. Organizations should consult their own legal and tax advisors and tailor this document to reflect their specific business needs, geographies, and applicable laws.

Document Title	Document Type	Category	Version	Effective Date	Last Reviewed	Next Review	Document Owner	Executive Sponsor	Geographic Coverage
Spot Recognition Programs - <Company Name>	Spot Recognition Programs	Perquisites & Programs	<Version Number>	<Effective Date>	<Last Reviewed Date>	<Next Review Date>	<Role or Name> (Total Rewards)	<Role or Name> (e.g., CHRO)	<Country> and any other applicable locations

Related Policies	Supersedes	Dependencies	System of Record	Vendor	Currency
Global Recognition Policy, Code of Conduct, Delegation of Authority, Travel & Expense, Payroll, Data Privacy	<Prior Document Name or N/A>	HRIS, Payroll, Finance Controls, Procurement, IT Security	<HRIS Name> and <Recognition Platform Name>	<Vendor Name> or Internal	<Currency/Currencies>

Purpose and Objectives

Define a clear, consistent, and timely method for recognizing employees who demonstrate behaviors and results aligned to <Company Name> values and business priorities
Reinforce a culture of appreciation, agility, and inclusion by enabling rapid acknowledgment of outstanding contributions at the moment they occur
Provide guardrails for managers and peers to nominate, approve, and issue spot recognition awards responsibly and compliantly
Establish funding, governance, and measurement practices that ensure the program is effective, equitable, and sustainable

Program Objectives

Increase frequency and timeliness of recognition to within <Number> days of the achievement
Achieve at least <Percentage> manager participation and <Percentage> employee coverage annually
Align at least <Percentage> of awards to priority themes (e.g., Customer Focus, Innovation, Safety, Inclusion)
Maintain budget adherence within ±<Percentage>% of the approved allocation
Demonstrate positive correlation between recognition activity and engagement scores in targeted populations

Scope and Applicability

Applies to all regular employees of <Company Name> in <Country> and any other participating locations, unless otherwise restricted by local law or works council agreements
Includes full-time and part-time employees who meet eligibility criteria defined in this document
May include contingent workers or interns only where permitted by local policy and contractual terms, and with separate guidelines
Program is designed for near-term recognition of discrete contributions, not for annual performance cycles, promotion decisions, or base pay adjustments

In Scope

Spot recognition awards for individual employees and teams tied to specific outcomes or behaviors
Peer-to-peer recognition where enabled by the platform and local policy
Manager-nominated recognition with budget and approval controls
Non-monetary and monetary recognition delivery methods (e.g., e-cards, points, gift cards, grossed-up cash)
Reporting, taxation handling, and accounting for awards processed through payroll or approved vendor

Out of Scope

Annual bonus or sales incentive plans
Long-service awards and milestone anniversaries
Patent awards, referral bonuses, and safety bounties where separate policies exist
Corrective or disciplinary actions (recognition must not be used to offset performance issues)
Gifts or hospitality subject to anti-bribery rules for external parties

Program Philosophy and Guiding Principles

Timely recognition within <Number> days of the achievement maximizes impact
Specific recognition describes the behavior and business outcome
Inclusive recognition ensures equal access and mitigates bias
Simple administration with clear budgets and approvals
Compliant with tax, labor, anti-bribery, privacy, and accounting standards
Transparent criteria and reporting to build trust

Program Overview

Spot Recognition enables managers and peers to acknowledge notable contributions that exceed normal job expectations and align to <Company Name> values
Awards may be delivered as non-monetary appreciation or monetary equivalents
Funding is set annually by Total Rewards in coordination with Finance and allocated to business units and cost centers
Approvals are required based on award tier and local delegations of authority

Recognition Types

Non-monetary: e-cards, public kudos, certificates, thank-you notes
Monetary: cash (via payroll), prepaid cards, digital gift cards, points redeemable for merchandise or experiences
Team awards: shared awards distributed proportionately across team members
Peer-to-peer: small-value awards initiated by employees, subject to manager approval and guardrails

Award Tiers and Guidelines

Tier	Purpose	Typical Triggers	Award Range	Delivery Method	Approval Level	Tax Treatment
Tier 1 Micro	Reinforce daily positive behaviors	Helpful cross-team support, quick problem solving	<Amount> to <Amount> or <Points> points	E-card plus points or small gift card	Manager or auto-approve with monthly budget	Generally taxable; see local rules
Tier 2 Standard	Recognize notable contributions beyond role expectations	Customer win, process improvement, quality or safety save	<Amount> to <Amount> or <Points> points	Payroll cash, gift card, or points	Manager plus next-level or cost center owner	Taxable; gross-up per local practice
Tier 3 Significant	Mark exceptional outcomes with measurable impact	Critical incident response, major cost savings, innovation launch	<Amount> to <Amount> or <Points> points	Payroll cash preferred	Director or higher plus Finance review	Taxable; gross-up required where policy mandates
Tier 4 Exceptional (rare)	Enterprise-level breakthroughs	Company-defining win or risk avoidance	Up to <Amount> with CFO or CHRO approval	Payroll cash only	Executive approval as per Delegation of Authority	Taxable; treat as supplemental wages

Funding and Budgets

Annual budget set at <Percentage>% of eligible base payroll or a fixed pool of <Amount> per fiscal year
Budget allocated to business units based on headcount, payroll, or strategic priorities
Manager monthly micro-budgets for Tier 1 of <Amount> to encourage frequent recognition
Unused budgets may be reallocated quarterly by Finance and Total Rewards
Spend above Tier 2 requires pre-approval and may come from a central reserve

Eligibility and Exclusions

Eligible: active employees not on a performance improvement plan at the time of award
Ineligible: employees with active disciplinary actions, employees who already received an award for the same contribution, and executives covered by separate recognition frameworks
Probationary or newly hired employees are eligible unless restricted by local law; managers should ensure contributions truly exceed onboarding expectations
Awards cannot be used to compensate for overtime, change in job scope, or salary inequities
Employees may receive multiple awards during a year; however, no single employee should exceed <Amount> or <Percentage>% of base pay in spot awards annually without CHRO approval

Nomination and Approval Process

Workflow Overview

Nominator selects award type and tier in <Recognition Platform Name>
Nominator writes a specific citation linking behavior to <Company Name> values
System routes nomination to approver(s) based on tier and cost center
Approver reviews budget availability and criteria alignment
Upon approval, award is issued and payroll or vendor processes tax and delivery
Recipient and nominator receive notifications; public feed posts where enabled
Reporting updates for finance accruals and program analytics

Nomination Criteria Checklist

Was the contribution clearly beyond normal job expectations or responsibilities
Does the recognition explicitly reference at least one <Company Name> value
Is the award amount proportionate to the impact and consistent with the tier guidance
Has a similar award already been granted for this contribution
Are there any conflicts of interest between nominator and recipient
Have diversity, equity, and inclusion considerations been reviewed to ensure fairness

Approval Rules

Tier 1: auto-approval within the manager’s monthly budget; retroactive reviews conducted by HR Business Partners
Tier 2: manager plus one-up approval; finance notification for accrual
Tier 3: director-level approval plus finance pre-check for budget
Tier 4: executive approval per Delegation of Authority and Total Rewards sign-off

Taxation, Payroll, and Accounting

All monetary awards are generally taxable income to the employee under <Country> tax rules
Non-cash awards may also be taxable depending on local de minimis thresholds; consult <Country> guidance
Where policy requires gross-up, payroll will calculate withholding using supplemental wage methods; gross-up rates of <Percentage>% to <Percentage>% may apply
Payroll processes taxable awards in the next practicable pay cycle; off-cycle runs require Finance approval
Chart of accounts and cost centers must be accurate; awards should be coded to <GL Account> and <Cost Center>
Accruals: Finance records monthly accruals for approved but unpaid awards and reverses upon payment
Cross-border awards must comply with payroll reporting in the employee’s work location; do not issue awards from an entity that cannot run local payroll

Compliance Notes

Anti-bribery: never use recognition to influence business decisions or in lieu of prohibited gifts
Works councils and unions: engage early where required to consult or negotiate program elements
Wage-hour: spot recognition is not compensation for hours worked and must not circumvent overtime rules
Recordkeeping: retain nomination, approval, and payment records for <Number> years

Governance and Controls

Delegation of authority and approval matrix enforced through system workflows
Budget controls with hard stops at cost center and approver levels
Conflict of interest checks; no direct-report awards above Tier 2 without one-up approval
Duplicate detection across nominations referencing the same event
Quarterly audits by Total Rewards and Internal Audit to review equity, spend, and policy adherence
Whistleblower and ethics hotline available for concerns about misuse or favoritism
Program exceptions documented with rationale and approvals; tracked and reported to Governance Committee

Roles and Responsibilities

Total Rewards
- Owns policy design, tiers, budgets, vendor management, training, and reporting
- Monitors equity across demographics and functions; recommends adjustments
- Partners with Finance on accruals, audits, and budget reallocation
HR Business Partners
- Coach managers on appropriate use and criteria alignment
- Review award patterns for bias or misuse and escalate issues
Managers
- Nominate timely, specific awards aligned to values; steward budgets responsibly
- Provide high-quality citations and feedback to recipients
Employees
- Participate in peer recognition where enabled; uphold program integrity
- Avoid self-nomination unless explicitly allowed by local policy
Finance
- Set annual funding, monitor spend, and ensure correct accounting
- Review Tier 3 and Tier 4 approvals for budget availability
Payroll
- Ensure accurate taxation, gross-ups, and timely payment
- Maintain records and support year-end reporting
IT and Security
- Maintain integrations, access controls, and data privacy compliance
Vendor <Vendor Name>
- Provide platform availability, redemption catalog, and support under SLAs

Budgeting and Allocation

Annual funding methodology: <Percentage>% of eligible payroll or <Amount> per employee per year
Quarterly top-ups for high-performing or rapidly growing teams with demonstrated need
Micro-budgets: managers receive <Amount> per month for Tier 1 awards; unused micro-budgets may not roll over unless approved
Central reserve: <Percentage>% of total budget held by Total Rewards for strategic or cross-functional recognition
Year-end true-up: reconcile accruals to payments; return surplus to corporate or carry forward with CFO approval

Implementation Guidelines

Program Design Steps

Confirm objectives and success metrics with leadership
Define tiers, ranges, and approvals with Finance and Legal
Select or configure platform <Recognition Platform Name> and integrate with <HRIS Name>
Pilot with <Number> teams across <Country> for <Number> weeks; collect feedback
Finalize policy, enable budgets, and train managers and HR
Launch with employee communications and leadership endorsement
Monitor, iterate, and publish quarterly impact reports

System Configuration Essentials

Daily HRIS feed of active employees, managers, departments, cost centers, and locations
Single sign-on with multi-factor authentication
Role-based access for nominators, approvers, HR, Finance, and auditors
Approval rules by tier and country; budget checks at cost center
Export files to payroll with employee ID, award amount, taxable flag, gross-up flag, cost center, and memo
Data retention for <Number> years; deletion and retention aligned to privacy policy
Audit logs capturing all nomination and approval actions

Vendor Management

Contract with <Vendor Name> including data processing terms, SLAs, uptime of <Percentage>%, support response times, and catalog coverage for <Country>
Quarterly business reviews to assess utilization, satisfaction, and catalog relevance
Redemption catalog aligned to company values and local availability; exclude cash equivalents where prohibited
Security assessments and penetration testing per <Company Name> standards

Equity, Inclusion, and Localization

Monitor distribution of awards by gender, race/ethnicity (where lawful), tenure, job level, location, and work arrangement
Provide manager training on recognizing inclusive behaviors and mitigating bias
Localize award ranges for cost of labor and pricing differences across <Country> and other markets
Provide alternative recognition options for employees in locations without vendor coverage
Translate communications and platform content into <Languages>

Examples of Recognizable Contributions

Customer: turned a service recovery into a promoter outcome, saving <Amount> in potential churn
Safety: identified a hazard and implemented a fix preventing incidents
Innovation: prototyped a solution that reduced cycle time by <Percentage>%
Inclusion: facilitated a cross-cultural workshop increasing team engagement
Operational excellence: automated a process saving <Number> hours per month
Teamwork: supported another function to meet a critical deadline

Prohibited or Discouraged Uses

Recognizing routine job duties without a truly exceptional contribution
Trading awards among peers or using awards to influence performance ratings
Recognizing personal events with monetary awards where policy prohibits (e.g., birthdays)
Recognizing vendors, customers, or external parties with company-funded awards without Legal approval

Measurement and Program Evaluation

Metric	Definition	Target	Data Source
Participation rate	Percent of employees receiving at least one recognition	<Percentage>%	Platform analytics
Manager coverage	Percent of managers issuing at least one award	<Percentage>%	Platform analytics
Time-to-recognize	Days from contribution to award approval	≤ <Number> days	System timestamps
Equity index	Variance of award rates across demographics	Within ±<Percentage>%	HR analytics
Budget adherence	Actual spend vs. plan	±<Percentage>%	Finance reports
Engagement lift	Change in engagement scores vs. baseline	+<Percentage> points	Survey results

Publish quarterly dashboards and a year-end impact summary to leadership
Use findings to adjust tiers, budgets, and training

Risk Management and Controls

Fraud prevention: monitor for unusual patterns such as reciprocal awards or high frequency between a small group
Cap per event: do not stack multiple awards for the same contribution; consolidate into one appropriate tier
Rounding rules: avoid unusual amounts that might indicate misuse
Escalations: HR Business Partners to review concerns within <Number> business days; Ethics Office available for anonymous reports
Business continuity: define manual fallback process if system is unavailable

Records Management and Privacy

Personal data processed includes name, employee ID, manager, department, location, and award details
Legal bases include legitimate interests and consent where required by <Country> law
Data shared with <Vendor Name> under data processing agreement; cross-border transfers protected by <Mechanism>
Retain records for <Number> years; purge or anonymize after retention period
Employees may request access or correction via <Privacy Contact>

Review and Approval Process

Total Rewards drafts and updates the policy annually or sooner if laws or business needs change
Legal reviews for compliance with tax, labor, privacy, and anti-bribery requirements
Finance reviews for budget impact and accounting treatment
Executive sponsor approves final policy and any exceptions above Tier 3
Versioning maintained with effective and review dates in the document header

Revision History

Version	Effective Date	Summary of Changes	Author	Approvals
<Version Number>	<Date>	Initial release	<Name>	<Approver Names/Titles>
<Version Number>	<Date>	Adjusted Tier 2 range; added equity metrics	<Name>	<Approver Names/Titles>

Frequently Asked Questions (For HR and Managers)

How do I choose between cash and points
- Use cash when taxation and payroll timing are clear and the award is significant; use points or gift cards for convenience and frequent use
Can I recognize a cross-border colleague
- Yes, nominate through the platform; awards are paid via the recipient’s local payroll where possible
What if my budget is exhausted mid-quarter
- Request a top-up from your HR Business Partner; Total Rewards may allocate from the central reserve based on need
Are peer-to-peer awards allowed
- Yes for Tier 1 within monthly limits; manager approval is required to finalize
How do I avoid bias
- Use the criteria checklist, review your team’s distribution quarterly, and seek HR guidance

Appendices

Appendix A: Sample Manager Monthly Checklist

Review recognition activity for your team; identify gaps
Allocate Tier 1 micro-awards to reinforce timely wins
Nominate Tier 2 or Tier 3 awards for high-impact contributions
Validate budget status; request top-ups if needed
Share examples in team meetings to model desired behaviors

Appendix B: Sample Nomination Citation Template

What was achieved
- Describe the specific result or behavior
Why it matters
- Connect to <Company Name> values and business outcomes
Impact
- Quantify where possible (e.g., saved <Amount>, improved by <Percentage>%)
Timeliness
- Note the date of the contribution and why recognition is timely
Suggested tier and amount
- Reference the guidance table

Glossary of Terms and Definitions

Accrual – Accounting entry recognizing an award expense before payment
Approval Matrix – Rules that define who must approve awards by tier and amount
De Minimis – Small benefits that may be excluded from taxation under certain local rules
Gross-Up – Additional payment to cover employee taxes, maintaining a net award amount
HRIS – Human Resources Information System, the source of employee data
Micro-Budget – Small monthly budget allocated to managers for frequent recognition
Peer-to-Peer Recognition – Employees nominating colleagues for small awards
Points – Non-cash currency redeemable in a vendor catalog
Spot Recognition – Immediate acknowledgment of a specific contribution
Tier – Level of award defined by purpose, amount range, and approval requirements

Communication Section: Employee and Manager Guide to Spot Recognition

Welcome to the <Company Name> Spot Recognition Program. This program exists to celebrate moments that move our business forward. When someone goes above and beyond, we do not wait for the annual review. We say thank you now, clearly and meaningfully.

What Is Spot Recognition

Spot recognition is a simple way to call out specific contributions tied to our values. It might be a teammate who stayed late to help a customer, a colleague who found a better way to do something, or a crew that rallied to meet a deadline safely. Recognition can be a public thank-you, points you can redeem, or a cash award. The goal is to make appreciation timely, specific, and fair.

Who Can Participate

All active employees in <Country> and other participating locations are eligible unless local rules say otherwise. Managers can nominate at any tier. In many teams, employees can also recognize peers for small wins using Tier 1 awards. If you are unsure whether peer-to-peer is enabled for your team, check <Recognition Platform Name> or ask HR.

How It Works

See something great. Think about what happened, why it mattered, and which <Company Name> value it represents.
Go to <Recognition Platform Name>. Choose a recognition type: thank-you e-card, points, or cash (based on your options and country).
Write a short, specific message. Mention the outcome and the value. For example: “You lived our Customer Focus value by resolving a critical issue that saved <Amount> in churn risk.”
Submit. Your nomination will route for approval based on the tier. In many cases, Tier 1 is approved quickly with your manager’s budget.
Celebrate. The recipient gets notified, and recognition can be shared on the public feed if you choose.

Choosing the Right Tier

Tier 1 Micro: small, frequent thank-yous for daily wins. Ideal for quick help, knowledge sharing, or great teamwork.
Tier 2 Standard: notable contributions with visible impact, such as improving a process, winning a customer, or elevating safety.
Tier 3 Significant: exceptional outcomes, like a critical incident response or major cost savings.
Tier 4 Exceptional: rare, enterprise-level achievements. These require senior approval.

If you are unsure, start with Tier 1 or ask your manager or HR Business Partner. You can always add context to help approvers choose the right level.

Tips for Great Recognition

Be timely. Try to recognize within <Number> days of the contribution.
Be specific. Name the behavior and the business impact.
Be fair. Look for opportunities across your whole team, not just the most visible roles.
Be inclusive. Recognize behaviors that create belonging and support others.

What to Expect if You Receive an Award

You will get an email or app notification. If your award includes points, you can redeem them for items or experiences in the <Vendor Name> catalog. If your award is cash, it will appear in your next available paycheck and may be taxable. If you have questions about taxes, check the program page or contact Payroll.

Taxes and Privacy, Plain and Simple

Most monetary awards are taxable. That means your paycheck may show withholding for the award. In some places, very small non-cash awards may be tax-free, but rules vary by country. We keep your recognition details private by default, unless you choose to share them on the public feed. We may use anonymized data to improve the program.

Examples You Can Use Today

“Thanks for stepping in to cover the late shift and keeping the operation running safely. You demonstrated our Ownership value.”
“Your prototype cut our build time by <Percentage>%. That is real innovation.”
“The way you facilitated the customer workshop turned a skeptical room into a path forward. Great Customer Focus.”

Getting Help

If you have questions about how to nominate, budgets, or redemption, visit <Intranet Page URL> or open a help ticket with <Support Group Name>. For policy questions, contact <HR Contact>. For payroll taxes, contact <Payroll Contact>.

Final Notes

Recognition is for contributions that go beyond normal expectations. It is not a substitute for base pay, overtime, or annual bonuses. Please use this program responsibly and thoughtfully. Small, timely thank-yous add up to a strong culture, and your recognition makes a difference.

Thank you for helping build a culture where great work is seen, valued, and celebrated.

Document Information:

Document Type: Spot Recognition Programs
Category: Perquisites & Programs
Generated: August 28, 2025
Status: Sample Template
Next Review: <Insert Review Date>

Usage Instructions:

Replace all text in angle brackets < > with your company-specific information
Review all sections for applicability to your organization
Customize content to reflect your company's policies and local regulations
Have legal and HR leadership review before implementation
Update document header with your company's version control information
At bottom of the document you find a short example on how the content could be communicated to end-users, for instance employees.

This sample document is provided for reference only and should be customized to meet your organization's specific needs and local legal requirements.