10 holiday incentives for employees to boost engagement in 2025

As the festive season approaches, the opportunity to engage employees through holiday incentives becomes more valuable.

Unlike regular incentives tied to performance metrics, holiday incentives are specifically designed around end-of-year celebrations and reflect a spirit of gratitude and reflection. Companies often find these incentives can take various forms, like bonuses, extra time off or thoughtful gifts.

Why companies should offer holiday incentives

Holiday incentives do more than brighten the season; they can deliver measurable business value and support strategic HR goals. The benefits can be numerous:

Improved retention

Offering holiday incentives creates an atmosphere of appreciation. Employees who feel valued are less likely to leave, reducing turnover costs and preserving institutional knowledge.

Increased productivity

Motivated employees tend to be more productive. When teams know their efforts will be recognized during the holidays, they are more likely to go the extra mile as the year closes.

Competitive advantages

In a tight labor market, holiday incentives can differentiate your company as an employer of choice. This competitive edge helps attract top talent eager for a positive workplace culture.

Enhanced morale

The holiday season naturally stirs sentiments of goodwill and generosity. When companies align their rewards programs with these sentiments, it elevates overall morale, fostering a more cohesive team atmosphere.

Tax considerations (for employers)

Consider the potential tax benefits that can come with holiday incentives. Many rewards may be tax deductible, making them not only rewarding for employees but cost-effective for businesses as well.

10 holiday employee incentives to offer this year

As we approach the season of giving, here’s a list of 10 enticing holiday incentives your company can consider to enhance employee engagement:

1. End-of-year bonuses

A financial bonus to reward hard work showcases appreciation and can significantly boost employee satisfaction. Add the deposit to their normal payday or send out prepaid credit cards they can use anywhere they like.

2. Extra paid vacation

Providing additional time off acknowledges employees’ dedication and allows them to recharge after a busy year. Reward Gateway | Edenred closes its doors for the full week between Christmas and New Years to give our staff a vital break so they can come back refreshed and energized to start off the new year.

3. Personalized gift baskets

Tailored gift baskets filled with favorite snacks or local goods can create a heartfelt connection between you and your employees.

4. Charity donation matching

Encourage employees to give back by matching their charitable donations, reinforcing your company’s commitment to social responsibility. The RGER Reward Marketplace even features a collection of vetted charity opportunities to consider, but the options are nearly limitless.

5. Experience vouchers

Whether for concerts, local events or travel – or anything else! – offering vouchers for experiences can create cherished memories beyond material gifts.

6. Flexible work options

Allowing employees to choose their schedules or work from home during the holidays adds a layer of comfort and balance during this busy time that employees appreciate. It’s cold outside and the option to keep one’s toes warm and toasty is pretty hard to resist.

7. Wellbeing offerings

Consider providing mental health app subscriptions, gym memberships or meal kit subscriptions to support overall employee wellbeing.

The holidays are an exciting time for communal celebration, but they can also be a difficult time for many, whether due to difficult familial relationships, experience of loss or other reasons. You never truly know what someone is going through, so wellbeing resources are especially useful around this time.

8. Holiday raffles

Get employees excited with festive raffles, offering prizes ranging from gift cards to tech gadgets, adding an element of surprise to the season (and a little bit of relief to your end-of-year budget).

9. Useful company swag

High-quality branded items like hoodies, mugs or tech accessories not only serve as reminders of the company, but also promote a sense of pride in the organization.

10. Subscription services

Offers for streaming services, snack boxes or magazine subscriptions can stretch enjoyment beyond the holiday season, providing continuous engagement.

Best practices for providing holiday rewards to employees

To maximize the impact of holiday rewards, employers can follow these best practices:

1. Consider employee needs

Understanding what matters to your employees ensures incentives resonate and foster appreciation effectively.

2. Personalize where possible

Tailoring incentives to individual preferences can enhance their perceived value and strengthen employee bonds.

3. Check eligibility for specific programs

Ensure all employees have equal access to incentives, promoting inclusivity and transparency in your approach.

4. Ensure transparency

Clear communication about how rewards are determined creates trust and encourages ongoing engagement.

5. Plan & budget ahead

Early planning can alleviate pressures during the holiday rush and ensures rewards are thoughtfully executed.

6. Gather feedback for next year

After the holidays, solicit employee feedback to refine future initiatives, maximizing effectiveness and resonance.

Make holiday recognition simple with Reward Gateway | Edenred

With Reward Gateway | Edenred, providing impactful holiday incentives doesn't have to be complex. Our employee experience platform streamlines the process of recognizing and rewarding employees throughout the festive season and beyond. By leveraging our tools, your company can create a robust culture of appreciation that lasts well into the new year.

Learn more about how Reward Gateway | Edenred can help you recognize your employees and make your corner of the world a better place to work!