Bonus & Incentive Guidelines Matrix

Use this chart as a guideline to have a conversation with your school or unit human resources manager to determine if bonus or incentive pay is appropriate for your staff.

	Performance Bonus	Incentive Program	Spot Bonus	Sign-On Bonus
Purpose	Recognize exceptional contributions, e.g., achieving business goals, productivity, innovation Recognize sustained outstanding performance and/or team achievement Compensate best performing employees near or at range maximum	“Forward-looking” award for accomplishment of specific results Motivate and influence employees contributions by identifying and formally communicating expected, measurable results and predetermined award amounts at the beginning of a project or performance cycle	Provide immediate recognition for one-time accomplishment(s) that go "above and beyond" expectations	Recruit external candidates (who are not current Stanford employees) with key skills/abilities
Eligibility	All nonexempt and exempt staff in salary classifications A through P and N11 upon successful completion of trial period as applicable		All nonexempt and exempt staff, A-P, N11 including those in trial period, as applicable	All nonexempt and exempt staff in salary classifications A-P, N11
Approval	Dean/VP or designee and HRM	HRM must partner with Staff Compensation to develop formal components of program including award amounts Staff Compensation, Dean/VP or designee and HRM Incentive plan documented in writing and communicated to employee	Dean/VP or designee and HRM	Dean/VP or designee and HRM
Funding	Refer to current year’s staff compensation program guidelines		Funded by Departmental, VP or School sources	Funded by Departmental, VP or School sources
Timing	Any time during the fiscal year			Upon hire to Stanford University