Year-End Rewards: Employee Holiday Bonuses for Meeting Annual Goals

The best employee holiday gifts in 2025 include flexible gift cards, personalized recognition, and experiences that foster loyalty and morale. As the year comes to a close, employers are looking for ways to recognize achievements, motivate employees to finish the year strong, and carry momentum into the new year. Recognition during the holiday season isn’t just a nice-to-have; it’s a critical component of employee engagement and morale.

This year, gift cards continue to shine as the top choice for year-end rewards. In fact, 80% of employees say gift cards are their preferred incentive. With limited-time options like the Engage2Reward™ Holiday Choice Card available through December, companies have even more ways to deliver rewards that resonate.

How Holiday Incentives Strengthen Company Culture

Incentive programs do more than boost performance; they shape culture. Recognizing employees during the holidays fosters appreciation, belonging, and loyalty. Here’s how year-end rewards make a difference:

Boosting Morale

The holidays can be stressful, as employees balance wrapping up the year at work with family obligations. Personalized rewards, like gift cards, help employees feel supported and valued, easing stress and boosting morale.

Improving Retention

Gallup research shows that well-recognized employees are 45% less likely to change jobs and 65% less likely to be job-hunting. Retention not only stabilizes the workforce but saves companies significant costs in turnover—often 40–200% of an employee’s salary depending on their role.

Driving Performance

Performance often dips at year-end as distractions set in. Timely recognition rewards can keep employees engaged, motivated, and focused through the final push of the year and into Q1.

Why Gift Cards Are the Ideal Year-End Reward

Gift cards remain one of the most effective year-end bonuses because they’re flexible, personal, and fast to deliver. Gift cards outperform cash by creating a lasting emotional connection. Use them to say thank you and drive Q1 engagement. Whether planned in advance or distributed last-minute, they create memorable recognition moments that last long beyond the holiday season.

• Flexibility & Personalization
  Gift cards give employees choice—whether it’s dinner out, holiday shopping, travel, or everyday essentials. Unlike cash, which quickly blends into bills, gift cards create memorable experiences and lasting impressions.
• Trophy Value
  The impact of a thoughtful gift card lingers. Even after the balance is spent, employees remember the recognition moment, especially when paired with a personalized message, image, or video via the Engage2Reward™ Gift Card Ordering Platform.
• Convenient Distribution
  Busy HR and leadership teams can deliver digital gift cards instantly through the Engage2Reward Platform, with over 250 top eGift card brands and versatile prepaid reward card options. Digital delivery ensures that even late rewards arrive before the holiday break.

Spotlight: The 2025 Engage2Reward Holiday Choice Card

For companies seeking maximum flexibility, the Engage2Reward Holiday Choice Card is the ultimate year-end reward. Available only through December 31, 2025, this limited-time card allows recipients to redeem the value across 150 of this year's most popular gift card brands.

With zero fees and a 2% rebate on orders over $5,000*, the Engage2Reward Holiday Choice Card means stress-free gifting for employers: one simple order covers everyone on your holiday list. And it’s also stress-free for employees, who get the freedom to choose the reward that matters most to them.

Other Popular 2025 Employee Holiday Gifts:

• Cash bonuses
• Extra paid time off
• Company-hosted celebrations
• Charitable donations in employee names

How Much Should a Holiday Bonus Be?

When planning holiday bonuses, there’s no one-size-fits-all amount. Some employers base their end-of-year rewards on individual salary, while others opt for a uniform flat rate. The best approach depends on your company’s size, budget, and overall compensation strategy.

Here are four common ways companies calculate holiday or Christmas bonuses:

Salary Percentage Bonuses

One of the most popular strategies is tying the bonus to a percentage of an employee’s annual salary. For example:

• 5% of a $50,000 salary = $2,500 bonus
• 10% of a $70,000 salary = $7,000 bonus

This method scales with compensation, rewarding higher earners proportionally while maintaining internal equity.

Flat Rate Bonuses

Many organizations choose to give a standard bonus amount to all eligible employees—for example:

• $500 holiday bonus
• $1,000 Christmas bonus

While easier to administer, flat bonuses may feel less impactful to senior or higher-compensated staff. Still, they’re a great option for companies looking for fairness, simplicity, and predictability—especially for hourly or non-exempt roles.

Performance-Based Bonuses (Business-Level)

Some employers link holiday bonuses to overall company performance. If year-end financial goals are met or exceeded, all staff might receive a bonus tied to results. This approach:

• Encourages teamwork and accountability
• Helps align employee motivation with company success
• May vary year to year based on profits or milestones

Just be sure to clearly communicate expectations so that bonus fluctuations aren’t unexpected.

Performance-Based Bonuses (Individual-Level)

Alternatively, bonuses can be tied to individual performance, offering higher rewards to top performers. This method is often used to:

• Incentivize high achievers
• Reward those who go above and beyond

However, transparency and consistency are key, especially when calculating bonuses for non-exempt employees subject to overtime regulations.

Make 2025 Recognition Count

As the year winds down, don’t miss the opportunity to thank employees for their dedication. Thoughtful, flexible rewards like gift cards create stronger emotional connections, boost morale, and help build momentum for the year ahead.

With the Engage2Reward Platform—and the limited-time Engage2Reward Holiday Choice Card—you can make holiday recognition simple, memorable, and meaningful.

Schedule a call or register today to start your year-end reward orders.

*This Promotion is limited to U.S. customers only. Single order must total $5,000 or more to qualify. All qualifying orders of $5,000 or more must be placed between September 1 and December 31, 2025. The 2% rebate on all qualifying offers will be applied as a credit in your Engage2Reward account and can be redeemed between 1/5/2026 and 3/31/2026 on new purchases only. ACH/Wire payment customers: a deposit account will be set up to provide access to promotional funds during the promotional redemption period. Credit card payment excluded. Not to be combined with other offers. GiftCard Partners reserves the right to modify or discontinue this offer at any time. Questions? Email us at support@engage2reward.com