As the job market starts to loosen up some employers are worried about turnover as employees consider moving to other companies. A survey conducted in 2003 by the Society for Human Resource Management (SHRM) reported that 64% of employees are "extremely likely" to seek new employment when the job market improves. An additional 19% are "somewhat likely."

The rule of thumb is that 10% of a company's workers can make 10% more money by changing employers. Employers can use the on-the-spot incentive bonus to help keep good employees by recognizing exceptional service or performance. Rather than waiting until the year end performance appraisal, the incentive is given soon after the event.

This bonus is best used to motivate a group of employees who make a modest wage, rather than the upper ranks. A small spot bonus of $50, $100 or $500 makes a big impact on the worker when it is delivered in a timely manner. It should be delivered within a 6 week period, or the reward for the exemplary behavior is less effective.

Spot bonuses usually amount to no more than 0.5 percent of total payroll. It is a low-cost initiative for companies. It is results-oriented and shouldn't be given out indiscriminately. These rewards want to be kept very special and restricted to 5 to 25% of the workforce.

There are other uses of spot bonuses. They include rewarding overburdened employees, and retention bonuses for staying for a defined period of time.