25+ Proven Employee Incentive Ideas to Keep Teams Motivated in 2025

Contents
Key takeaways:
- Employee incentive programs are a way to reward your workers for their achievements and loyalty.
- Rewarding your employees is a great way to boost motivation, productivity, and employee loyalty.
- Case studies show that recognizing an employee’s efforts can increase their job satisfaction and lower employee turnover.
- Some employee incentive ideas include giving away giftcards, offering extra vacation days, or profit-sharing.
Simply paying people a decent wage isn’t always enough to keep employees motivated in 2025. To boost performance, attract new hires, and keep teams motivated, you need to implement employee incentives.
But how do you do that? In this article, we’re going to explain what employee incentives are, why they’re so important, and how you can make them part of your company. We’ll also share more than 25 incentive ideas that will make your employees want to stick around for the long haul.
What are incentives for employees
An employee incentive program is a system that rewards your employees for their effort, investment in your company, and various achievements.
With incentives, you can motivate employees, encourage them to grow and learn with you, and boost their overall job satisfaction. An example of an employee incentive can be throwing an annual office party, introducing a wellness program for your workers, or giving them financial rewards when they reach specific goals.
Why employee incentive programs for small businesses matter
Employee incentives may sound like an unnecessary, modern invention, but the truth is that they can positively contribute to a company’s growth. Research shows that if done right, employee reward programs can increase performance by up to 44%.
The numbers only support what should be relatively intuitive. Your employees are people, and people like to feel valued and appreciated. When you offer them rewards for a job well done, they’ll feel seen and like they are an invaluable part of the team. Positive feedback reinforces positive behavior.
What’s more, if your employees know that reaching a certain goal will unlock a specific perk for them, they may feel more motivated to work harder.
So, even if you’re a small business, you should consider creating an incentive program. Employee loyalty is built with small steps like these, and it’s not just big corporations that can take care of those working for them.
How incentives influence employee motivation and performance
If you want to keep your employees involved and motivated, offering them incentives is a great way to do that. Studies show that only 23% of employees feel meaningfully recognized at work. What’s worse, about 60% of employees are actively looking for another job.
When people aren’t invested in their job, their overall performance is bound to drop, as is their motivation. Incentives can fix that. Even small, fun perks can boost employee morale significantly and make people want to try their hardest
Imagine this scenario, for example: Your employee feels tired and demotivated. Work keeps piling up on their desk, but even when they finish a major project, no one notices or acknowledges it. This makes them feel burned out and uninspired. They start considering slowing down and working with a lot less urgency and attention to detail.
But then, something changes. An “employee of the year” award is introduced, and they’re the one who wins it. They win a restaurant voucher and some extra time off. Suddenly, they feel like all their hard work has been worthwhile.
The extra time off is nice, too, so they may even try to win the award next month. For that, they know they’ll have to keep working hard. But they’re happy to do so, now that they know there’s something in it for them.
How positive employee morale benefits your business
Employee benefits aren’t just good for the employees themselves. They can also help your business grow. Here are some perks you’ll gain by making your employees happy:
- Easier hiring process: When you’re hiring someone new, it’s important that you have something to offer them. Benefits and incentives are a great selling point, and they can be the deciding factor between taking a position at your company over a competitor.
- Lower turnover: Happier employees tend to be more loyal to the company they work for. If they’re satisfied and feel appreciated, chances are they’ll stick around for longer, leading to a lower turnover for you.
- Harmonious work environment: No one likes their work to be filled with drama, but when employees are unhappy, incidents can occur. On the other hand, by keeping everyone happy and motivated, a more peaceful atmosphere can be fostered.
Top 25+ employee incentive ideas to boost employee engagement (+ REAL CASES)
Now that you know just how useful employee incentive programs can be, it’s time to discuss some reward program ideas that you could implement at your company. Here are 25 examples we would recommend:
1. Reward smaller accomplishments with social media posts
Employee satisfaction doesn’t just come from being recognized for their big, career-defining achievements. Celebrating smaller victories can go a long way, too. This is something that Heineken learned the hard way.
The company focused most of their budget on rewarding just a select few of their staff. This led to only about 20% of employees feeling sufficiently recognized at their workplace. The results of the survey made Heineken rethink their strategy.
With the same budget, they prioritized rewarding everyone across the board. Unsurprisingly, they found out that smaller and regular rewards distributed more widely had a much more positive impact on the company as a whole than only recognizing just a small percentage of their employees.
Even if you don’t have a big budget, you can still make sure that your employees feel appreciated. One way to do this is with social media.
If your receptionist successfully welcomed over 200 guests, thank her on Instagram. Did your IT guy solve a network issue that had everyone else stumped? Highlight his skills in a LinkedIn post. You can also post a photo of the whole team after they wrap up a specific project. The options are endless.
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2. Upgrade the equipment
If your employees have to spend hours at the desk typing on a computer, make sure that they’re as comfortable as they can be. Buying new ergonomic chairs or replacing old monitors can go a long way. Show your workers that you care about their well-being and stress levels.
3. Throw an office party
A good company culture involves being able to have fun at work. One of the best ways to achieve this is by throwing occasional office parties.
There are several ways you could go about this. Some companies like to have regular pizza parties. Others only organize events around certain holidays, such as Christmas or Halloween. Whatever you do, make sure that the party feels like a reward. Make it about your employees, and let them know you appreciate all their hard work and effort.
4. Offer an extra vacation day
Work-life balance is a term that’s been going around for years now. And there’s a good reason for that. Studies show that work-life balance is even more important to employees worldwide than good pay.
One way to ensure that your employees aren’t spending every hour of every day at the office is by rewarding their hard work with an extra vacation day. You could do this after successfully wrapping up a particularly difficult project, or simply whenever you notice that one of your employees seems to be in need of a recharge.
5. Reward your employees with gift cards
Another thing you could do is give your employees coupons or gift cards. These can be for anything and everything your employees may enjoy, including movie theaters, museums, magazine subscriptions, the Apple Store, or bookshops. Just make sure that the gift card feels personalized to the recipient. Don’t give someone who solely bikes to work a gift card for new car seats.
6. Offer free language classes
Professional development is important. So is personal development. One thing that combines both of these is language learning. Picking up a new language can help your employees in their career progression, but it can also enrich them on a personal level.
You can ask your employees if they’d be interested in free language lessons. This will especially speak to your more passionate employees. As a bonus, it will also help your company thrive in the international market. It’s a win for everyone.
7. Set up dinners with the CEO
Workplace hierarchy can sometimes get in the way of employees feeling seen and welcome at their job. One way to break this barrier is by establishing regular dinners or brushes with the CEO or top management team.
These can be given out as rewards to your hardest-working employees. It will give them the opportunity to get to know the company better, network, and maybe even gain a mentor in the process.
8. Establish profit-sharing schemes
If you want to boost employee loyalty, profit sharing is one of the best ways to achieve this. If you give your employees company stock, they’ll feel more connected to their work. After all, they won’t just be regular workers. They’ll be owners, too.
The successful Chinese company Huawei is largely owned by its employees, and they’ve been able to succeed in a global market, proving that as an incentive, this works.
9. Create a Wall of Fame
If you employ a lot of high-achievers, there’s one simple way you can reward them all: by featuring them on your own Wall of Fame.
Did your employee break a sales record? Put their picture on the wall. Did your graphic design team finally create a new brand logo? The whole team should be featured.
This is a small, non-monetary incentive, but it can be a lot of fun. Moreover, it can boost playful competitiveness and motivation among your employees.
10. Allow for more flexibility
A firm 9-5 schedule doesn’t work for everyone, and a good employer should be able to see that. Allowing your employees to set their own schedule within certain parameters can greatly impact their overall mental health and motivation.
For example, say you need your employees to work eight hours every day. You can establish a fixed time when they need to be at work, such as 10-2. Beyond that, it’s up to them when they prefer to work the remaining four hours. Some may choose to work 9-5, some may opt for 10-8, and others can even decide to work 6-2.
11. Encourage better mental health and self-care
Burnout is a serious issue these days, and as such, it’s more important than ever that employers try to prioritize their employees’ well-being.
Ask your workers how they are and regularly check in on them. Make sure that they’re appropriately supported if they have a particular mental health condition or are neurodivergent.
You can also offer an in-office counselor or even a mental health day off.
12. Ask about your employees’ interests
Your employees are people, and they have lives outside of the office. To make them feel seen, get to know them on a more personal level. Asking them about their hobbies and passions can make a big difference.
This idea can be combined with some of the others we’ve mentioned. For instance, knowing what your PA’s interests are can help you pick the right gift card for them.
13. Create a more informal, friendly atmosphere
Company culture can influence how comfortable your employees feel at work. Some places can be extremely formal because they take their mission seriously, but that’s not always a good thing.
An informal atmosphere can be just as productive, if not more, than its counterpart. Being on a first-name basis with one’s colleagues can help workers feel more relaxed and at ease. Formality becomes one less thing to worry about, and your employees’ communication skills may improve along the way, too.
14. Allow for casual Fridays
Office wear isn’t always the most comfortable, and it also doesn’t allow for a lot of personality to come through. Creating something as simple as “casual Fridays” when employees can come dressed in their regular clothes can make a big difference.
It’s a great way to get to know everyone on a more personal level and allow the week to end on a more positive, friendly note.
15. Give your employees double time
Another great recognition program is one that involves double time. As far as employee incentives go, this is bound to be a popular one.
When one of your workers performs particularly well, let them know that they can choose a day on which they’re allowed to take breaks that are twice as long as usual. They’ll get to relax, have an hour for their lunch instead of 30 minutes, and feel like their work-life balance has improved once more.
16. Take care of your employees’ health and fitness
A healthy employee is a happy employee, and promoting fitness among your workers is another great incentive. You have several options here, such as:
- Give your employees a massage gift card.
- Reward them with a free gym membership.
- Set up a small gym in your office.
- Organize yoga classes after work.
One case study shows that after Google included fitness and well-being programs in their benefits, they found that there was a 15% increase in employee satisfaction.
17. Organize a team outing
Team building can often be a dreaded term, but it can turn into an incentive if done right. For example, after the marketing team finally launches their big campaign, book them on a small one-day retreat.
Perhaps they’d like to go to a wellness center. Or maybe they’d prefer a more fun activity, such as an escape room or laser tag. Allow them a day off bonding with each other and having a good time. This will boost morale and encourage team members to keep working together.
18. Give your employees naming honors
Whether it’s a new program, a new room, or new equipment, there are always things in a workplace that need to be named. Instead of taking on all the responsibility yourself, you can turn this task into an employee incentive.
After your employee does a great job on an assignment, you can give them the honor of naming a new office space or coming up with a nickname for the new app your IT team is working on. This will likely both excite them and make them engage their creative thinking, which is always desirable.
19. Offer free meals
Employees have to eat, but getting food to consume at work can sometimes be stressful. To alleviate some of that stress for your workers, consider establishing a free breakfast buffet once a week or stocking the fridge with fruit and other healthy snacks that anyone can take.
Alternatively, you can also take your best employees out to their favorite restaurants, or get them a gift card to that café they keep mentioning.
20. Have a company picnic or sports day
Company-wide events can be a great way to get employees engaged with each other. You can have a yearly company picnic, a sports day, or even a volunteering day. On said day, your employees don’t have to go to work. Instead, they go do an activity of your choosing and hopefully have fun in the process.
21. Support community service and volunteering
One way to make your company more community-conscious and forward-thinking is by encouraging your employees to volunteer. You can organize company-wide volunteering days, invite speakers to educate your employees on your community’s needs, or even offer an extra day off for volunteering purposes.
This will make your employees appreciate you not just as an employer, but as a caring business that isn’t in it just for the money.
22. Give your busy employee a personal assistant
Sometimes, the work can become too much. If you have managers or other higher-ups who are always too busy to pick up the phone, consider getting them a personal assistant. This will make their job a lot easier and allow them to prioritize the truly important tasks without getting stuck with everyday bureaucracy.
23. Offer better parking spots
Some parking spots are better than others. Most employees would be happy to get a spot close to the main entrance, especially during the winter months. You can easily turn this into an employee incentive, too.
Instead of naming an “employee of the month,” consider giving your best performer a one-month pass to the best parking spot at your company. The highly sought-after spot is sure to motivate all your other employees to work even harder to secure it next month.
24. Let your employees drop one project
Not every project your employees have to work on will be a “winner” in their eyes. Some may include tasks that just aren’t suited to that one particular person who was assigned to it. However, if they still work hard and show initiative otherwise, you can make them feel seen and heard.
Allow them to drop one project every once in a while as a reward for their hard work. There’s bound to be someone else in the company who could take it on instead. Or, if a client is particularly difficult to work with, consider letting go of them altogether so as not to stress out your employees too much.
25. Give them an extra holiday
Last but not least, consider giving your employees an extra holiday. Most people get days off for Christmas or New Year’s Day, but how about Valentine’s Day or Halloween? As an employer, you get to choose which holidays your employees get to spend with their loved ones.
Choose one unusual holiday and give your workers time off for it. It’s a great employee incentive that will promote a healthier work-life balance.
26. Other suggestions
There are many more ideas for great employee incentive programs. If you’re still looking for more, you can pick one of the following:
- Buy expensive coffee and a good coffee machine that your employees can use.
- Create a compliment wall for your employees to praise their co-workers.
- Order a birthday cake for each of your employees’ birthdays.
- Try Promova Corporate that motivates teams globally
Are you looking for a great employee incentive program that supports professional development? Try Promova’s Corporate Language Training.
Here’s what you and your employees will get:
- Expert-led language courses: We only work with experienced teachers and professional tutors.
- Promova app: Let your employees learn a new language on the go.
- AI tutor: We provide a virtual coach that will give your workers instant and personalized feedback on their grammar, vocabulary, and more.
Promova also offers a business English course, an ASL course, and even a public speaking course. Start working with Promova today to motivate your employees!
Final thoughts
Employee incentive programs are a great way to motivate your employees, boost productivity, and improve employee retention. From giving away vouchers to offering extra days off and stock in your company, there are countless ways you can keep your employees happy. Just pick one and get started!
FAQ
What are employee incentives?
Employee incentives are rewards that employers give their workers to keep them happy, motivated, and productive. For example, an employee may receive a monetary reward, an extra vacation day, or new office equipment. Studies show that employee incentives have a positive impact on both individual workers and the company as a whole.
What are examples of effective employee incentives?
Some examples of effective employee incentives include double time, free meals, fun office outings, or extra vacation days. However, there are many more incentives that have been proven to have a positive impact. For example, promoting employees’ fitness and health can lead to higher job satisfaction.
What are the best employee incentives to motivate teams?
To motivate teams, consider sending your employees on group outings to promote team building. This can be a reward after finishing a particularly difficult task. Other effective team incentives include throwing office parties or creating a compliment wall where employees can praise each others’ achievements.
What are some low-cost incentive ideas?
Low-cost incentive ideas include creating a Wall of Fame for your best employees, giving away the best parking spot as a reward for impressive achievements, or allowing more job flexibility. Employee incentive programs don’t have to have high budgets. What matters more is prioritizing your employees’ actual needs and interests.
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