Luddy Staff Bonus Policy


The policy is effective immediately, 8/14/2020.


Policy Statement

The Luddy Staff Bonus Policy is designed to incentivize and reward exemplary performance among staff.  The Luddy policy is subordinate to IU Policy HR-03-70 .  Should a conflict arise the IU Policy must be followed.



This policy covers all staff employees and all Luddy Reward and Recognition Plans currently including:

  • Staff Travelling Trophy ($250)
  • Annual Staff Award ($250)
  • Incentive Pay
  • Discretionary Bonuses


Staff Travelling Trophy Description and Process

The Staff Travelling Trophy is similar to an ‘employee of the month’ type of program and is awarded approximately 12 times a year.   The process is:

  1. Supervisors will let the Luddy HR Office know if they have an employee they want to recognize for a recent accomplishment.
  2. Occasionally there will be a wait list for the trophy so the awardee will be added to the list.
  3. The HR Office will arrange for the collection of the trophy from the prior recipient and will pass it to the supervisor.
  4. It is typical that a supervisor will fill the trophy with a favorite candy, or flowers, etc.  This is at the supervisor’s own expense.
  5. The supervisor will set up a ‘fake’ meeting with the awardee where a crowd of staff will gather (or Zoom) to surprise the awardee with the trophy.
  6. It is encouraged that the supervisor should take a picture of the awardee and send out a short email with the picture to the school to celebrate the awardee and their accomplishments.



Annual Luddy Staff Awards

The Annual Luddy Staff Awards are held in the fall at an official recognition ceremony presided over by the dean.  Staff are not informed ahead of time if they are a recipient.  The process includes:

  1. Call for nominations (see nomination rules in the policy appendix)
  2. Selection of approximately 6 winners by the senior administration
  3. Presentation of a ‘goofy award’ and official certificate at the ceremony


Incentive Pay

Certain Luddy staff are eligible for incentive pay, typically development staff.  Please note that per IU Policy certain groups of staff are not eligible for incentive pay, including student recruiting and admissions staff.  Luddy follows the IU Incentive Pay provision without modifications, please see IU Policy HR-03-70 item 7 for more information.


Discretionary Bonuses

Luddy follows the IU’s Discretionary Bonus Provision without modification, please see IU Policy HR-03-70 item 6 for more information.  Some important rules for discretionary bonuses include:

  1. These are an after the fact bonus and should not be communicated to an employee in advance of performing the work.
  2. Bonuses should also not be communicated to the employee until they have been fully approved at all levels.
  3. Per item “d” in the IU Policy, there are many levels of approval including:
    1. Fiscal Officer
    2. IU HR
    3. Provost Finance Office
    4. Dean
  4. Once all approvals have been received the employee may be told about the bonus and the Luddy HR/Payroll office will process the payment with their next pay check.



It is the responsibility of all Luddy personnel follow this policy to ensure all IU Policies and applicable IRS regulations are adhered to.

Appendix – Annual Staff Award Nomination Rules

  1. Nominations can be put forward by anyone (faculty, staff, student, etc.)
  2. Must be supported by the nominee’s supervisor
  3. Have a one page letter of support (400 words max) from the nominator
  4. Senior supervisors are not eligible (Level 4 and above)
  5. Prior recipients are not eligible until 5 years after a prior award
  6. Nominated staff should have generally been with the school for two years (exceptions will be considered).
  7. Nomination deadline – typically mid-October