Corporations may offer any number of incentive awards or honors, with or without accompanying money. Often, these are for meritorious achievement, whether individually or as part of a team on a particular project during a year. They can also be for superior performance generally, and be granted in conjunction with an annual performance appraisal. In the latter case, when people have reached the top of the salary range for their jobs, cash awards may be used instead of a permanent increase to base salary to reward high performance.
There are several things to consider when reviewing awards and honors. If not already provided, COs must request written policies and procedures covering all such programs. For each existing program, COs must determine:
- Who is eligible to receive an award or honor, or both? What eligibility criteria were used?
- Who, listed by race, sex and ethnicity, received an award or honor? What are the reasons each person received the award or honor? If there is a disparity by race, sex or ethnicity, were any nonfavored group members recommended for an award or honor, or both, who did not receive one? Why?
- If there is a nonfavored group with respect to receipt of the honor or award, did the contractor review awards to ensure nondiscrimination? What were the findings or results?
- If the award was accompanied by money, and the amount of money varied by race, sex and/or ethnicity, what were the average amounts received by the favored group and the nonfavored group(s)? Did the corporation review these awards to ensure nondiscrimination? What were the findings or results?