Ready or not, the holiday bonus season is almost here! And with rising costs and end-of-year stress piling on, employees are counting on that extra cash more than ever. But how many companies are actually handing out these seasonal perks?
To get the inside scoop, we surveyed over 1,500 employers and employees from across the US to get the full picture of Christmas bonuses in 2024. We asked US employers if bonuses are in the budget this year—or if they’re opting out—and how much they’re giving. On the employee side, we explored whether they’re expecting a bonus, how it impacts their job satisfaction, and if they’d pick cash over other perks. We’ll also break down how holiday bonuses vary by industry and reveal how employees are spending them, from gift-giving and paying off debt to investing and vacations.
If you’re not counting on a Christmas bonus this year, you might be in for a pleasant surprise. While 60% of employers are planning to give holiday cash bonuses in 2024, only 42% of employees expect to receive one. This gap in expectations suggests that employees might be feeling unnecessarily pessimistic about their holiday perks. And in industries like construction, finance, and technology, the odds are even better that workers will snag that extra cash. A surprise bonus could be the perfect morale lift as we wrap up 2024.
So what do these holiday bonuses look like? Most employers are handing out a fixed-dollar amount for all employees to show appreciation rather than tying holiday bonuses to salaries or individual performance. However, it’s worth noting that 64% of employers adjust these fixed amounts annually, depending on overall company performance.
When it comes to the average dollar amount of holiday bonuses, the most common amounts employers are offering fall between $101 and $250 (26%), with the next most common range falling between $501 and $1,000 (22%). Breaking it down by sector, employers in law or legal fields are the most generous, offering average bonuses between $2,501 and $5,000. The finance industry follows, with bonuses ranging from $501 to $1,000, while healthcare and technology sectors offer between $251 and $500. In contrast, industries such as construction, education, hospitality, manufacturing, and retail typically provide bonuses in the $100 to $250 range.
It’s clear that holiday bonuses are more than just festive gestures—they’re strategic moves in today’s job market. A whopping 82%of employers acknowledge that these bonuses boost employee morale, and 79% believe they’re essential to stay competitive. In an era where talent retention is crucial, offering a holiday bonus can set a company apart, signaling appreciation and fostering loyalty. However, not all employers are on board. Among the 40% of employers not planning to offer holiday bonuses this year, 52% cite company policy, and 21% point to budget constraints as the main reasons for withholding these cash bonuses.
Last year, 43% of employees received a holiday cash bonus, with the most common amount falling between $251 and $500. However, 57% missed out on this seasonal perk. What’s more, 55% of employees say that receiving a holiday bonus plays a significant role in their overall job satisfaction, and over a third (34%) would consider job hunting if holiday bonuses were off the table. This speaks volumes about just how much holiday bonuses mean to some employees—it’s not just a perk; for many, it’s a key part of feeling valued and motivated at work.
On top of that, 45% of employees think their holiday bonus should be higher given their company’s success. It’s clear that employees are tuned in to their workplace’s financial wins and expect a slice of that success in their Christmas bonus check!
If holiday cash bonuses aren’t on the table, however, there are other ways companies can show appreciation. Employees have clear preferences for alternatives:
According to employees, additional PTO tops the list as the next best alternative if cash bonuses aren’t an option at their company. Notably, end-of-year gifts, the option to pick an extra benefit, and professional development opportunities rank higher in importance than the classic holiday party. It’s a definite sign that employees are favoring personal growth and tangible rewards over traditional celebrations.
When it comes to holiday perks, cash is still king—well, mostly. We asked employees if they’d prefer a holiday cash bonus or other benefits/perks, and the results show a strong leaning toward that extra holiday cash. 83% of employees would rather get a holiday cash bonus than company stock options of the same value. And 75% said they’d still go for cash over additional paid time off of the same value. For many employees, an immediate reward they can see and spend holds major appeal.
But when we switched things up a bit—like a shorter work week or fully covered health insurance—the story changed. 66% of employees said they’d prefer a four-day work week over a holiday cash bonus and 59% would prefer fully covered health insurance valued the same as a holiday cash bonus. In a culture that’s becoming more aware of burnout and work-life balance, these options feel like a real quality-of-life upgrade.
And what about how employees actually use their holiday bonuses? Here’s how employees weighed in:
For most, it’s all about covering those holiday gift expenses, while the second-biggest group tucks it into savings or an emergency fund. So, whether it’s helping cover end-of-year costs or setting a little aside, that holiday bonus feels practical and reassuring—another reason why a cash bonus can mean so much to employees.
As we wrap up this closer look into holiday bonuses, one thing is clear: employees highly value that end-of-year cash boost, with many relying on it for holiday expenses, savings, and even career satisfaction. This study underscores the importance of recognizing employee priorities, especially in a competitive job market where retention and morale are essential. For companies, these insights reveal opportunities to keep their teams happy with the right mix of rewards.
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We gathered these holiday bonus insights through two separate surveys: one of employers and one of employees. For the employer survey, we surveyed 508 US leadership employees (directors, managers, supervisors, business owners, and others with authority to issue holiday bonuses) from companies with 10 to over 1,000 employees, conducted from October 21 to 23, 2024. The employee survey included 1,009 full-time US employees, aged 21-70, from companies with 10 to over 1,000 employees, conducted from October 21 to 22, 2024.
A holiday bonus was defined for survey respondents as a one-time, spot cash bonus given to employees around the holiday season (typically in December) as a gesture of appreciation. This cash bonus is typically added directly to a payroll check or issued as an additional payroll check. We specified that a holiday bonus is different from an end-of-year bonus that’s part of an employee’s regular compensation plan.
