Issued By: Human Resources
Effective Date: December 2009, August 2013
Bonuses
A bonus is a special one-time, after-the-fact, lump-sum payment made to a staff member to recognize extraordinary job performance and contribution to the College beyond normal job duties and work expectations. Employees who receive bonuses serve as a role model to others by displaying competencies that are aligned with the College's core values.
In order to be eligible for a bonus, the staff member must have had an overall performance rating of "meets all" or higher on his/her last performance appraisal. The bonus must be approved by the department VP and Human Resources and is processed on a Bonus Request Form. A bonus is discretionary in nature and should not be used to incentivize an employee in advance of performing the work.
A bonus may be used to reward a staff member's special efforts and high performance on special assignments. This type of bonus payment is used at the discretion of management to recognize high performance which results in significant and documented cost reductions, savings or income to the College. It may be used to recognize unexpected, self-starting, extraordinary individual accomplishments in support of organizational performance effectiveness occurring outside the boundaries of the expected performance of the staff member's job.
The amount of the award will vary based on achievement, but it will be no less than $500 and no more than $3000. Payment amount will be made in $500 increments. Decisions about the amount of the lump-sum bonus are dependent upon the nature and complexity of the accomplishment.
Bonuses are taxable to the employee are not benefits eligible.
Exempt employees are often expected to work additional hours in the course of their normal work assignments or on special assignments without additional compensation. A payment for ongoing performance should be reflected in the employee's base pay rather than a bonus amount. A base pay increase for performance should be made during the annual performance review. Extra compensation is not appropriate if additional duties become a regular part of an employee's position. Under these circumstances, a job evaluation and possible change in job description, pay band/classification, or rate of compensation may be appropriate. HR will assist in making these determinations.
Spot Recognition
Spot awards are spontaneous compensation, gift certificates, and gifts of a de minimis value (less than $75.00) that recognize an individual staff employee for a job well done. Generally these awards are given for demonstrating exceptional customer service, suggesting a process improvement, leading a project team, completing a project early or under budget, etc.
Compensation and gift certificates are always taxable to the employee, are not benefits eligible, and must be processed through Payroll. Non-monetary gifts may become taxable to the employee if the cumulative value exceeds $75.00 in any calendar quarter.