# Bonus or Gift? What Employees Say They Want vs What the Research Says Moves Them, and Why the Answer Is Both

Employees asked to choose between a cash bonus and a gift lean to cash: in a 2014 Express Employment Professionals poll, 27% chose a cash bonus, 1% gift items and 35% "a combination of the above," so for many the answer is both. In a field experiment, a gift moved effort more than equal cash.

*We sell a $35 logo mug gift box, printed, packed and shipped to each person's address. This guide covers the other options too, and it starts with the evidence for cash.*

**Key facts**
- **27%, 1%, 35%:** asked "How do you wish your company showed appreciation to employees?", employees and job seekers in an Express Employment Professionals poll chose "Cash bonus" (27%), "Gift items other than money" (1%) and "A combination of the above" (35%) ([SHRM, Dec 2014](https://shrm.org/topics-tools/news/benefits-compensation/holiday-rewards-cash-vs-gifts); old data).
- **A gift moved effort more.** In a controlled field experiment, "nonmonetary gifts have a much stronger impact than monetary gifts of equivalent value", yet "when workers are offered the choice, they prefer receiving money" ([Kube, Maréchal & Puppe, AER 2012](https://www.aeaweb.org/articles?id=10.1257/aer.102.4.1644)).
- **93% and 77%:** in the Incentive Research Foundation's 2026 report, as Tremendous summarizes it, "employees rated cash bonuses (93%) and gift cards (77%) as the most motivating rewards, with merchandise (40%) and company-branded swag (22%) much lower" ([Tremendous](https://www.tremendous.com/blog/employee-holiday-gifting-trends/), a gift-card and payouts platform).
- **Cash, in the IRS's words:** "Cash is generally intended as a wage" and "therefore cannot be a de minimis fringe benefit" ([IRS](https://www.irs.gov/government-entities/federal-state-local-governments/de-minimis-fringe-benefits)).

## What Do Employees Say They Want?

Here is the whole Express employee poll as SHRM published it, not just the top line. The question was "How do you wish your company showed appreciation to employees?"

| Answer | Share |
|---|---|
| A combination of the above | 35% |
| Cash bonus | 27% |
| Pay raises | 13% |
| Days off or shortened holiday hours | 9% |
| Gift cards | 5% |
| Gift items other than money | 1% |
| A holiday party | 1% |
| Other | 1% |

Source: Express Employment Professionals poll, in [SHRM, "Holiday Rewards: Cash vs. Gifts"](https://shrm.org/topics-tools/news/benefits-compensation/holiday-rewards-cash-vs-gifts) (Dec 5, 2014). The shares are as published (they add to 92%), and the poll is more than ten years old.

Read it carefully. A cash bonus got 27%, and gift items alone got 1%. But the biggest group, 35%, asked for a combination. "Cash or gift" is the wrong frame for about a third of the people answering.

Newer data points the same way. Tremendous summarizes the IRF's 2026 report with cash bonuses at 93% and gift cards at 77% "as the most motivating rewards", and merchandise at 40%. Reddit is blunter. In a September 2026 r/smallbusiness thread on employee Christmas gifts, one reply reads: "They want MONEY. … Not trinkets. Not a ham" ([thread](https://www.reddit.com/r/smallbusiness/comments/1wamda4/)). In another: "It's not 1950 anymore so cash isn't 'impersonal'" ([thread](https://www.reddit.com/r/smallbusiness/comments/1n2bx2d/)).

Employers don't always follow. In the employer half of the 2014 Express polling, 34% planned cash, 12% gift cards, 3% "Tangible gifts", 19% a combination, and 21% said "We will not give holiday bonuses" ([SHRM](https://shrm.org/topics-tools/news/benefits-compensation/holiday-rewards-cash-vs-gifts)).

## What Actually Moves Them: The Field Experiment

The key study here is Kube, Maréchal and Puppe's, published in the *American Economic Review* in 2012. Its abstract:

> "We conducted a controlled field experiment to measure the extent to which monetary and nonmonetary gifts affect workers' performance. We find that nonmonetary gifts have a much stronger impact than monetary gifts of equivalent value. We also observe that when workers are offered the choice, they prefer receiving money, but reciprocate as if they received a nonmonetary gift. This result is consistent with the common saying, "it's the thought that counts." We underline this point by showing that monetary gifts can effectively trigger reciprocity if the employer invests more time and effort into the gift's presentation."
>
> Source: [American Economic Review 102(4): 1644–62](https://www.aeaweb.org/articles?id=10.1257/aer.102.4.1644), read Oct 29, 2026.

SHRM's 2014 article quotes a 2013 *Harvard Business Review* description of the setup: students hired to catalog books for three hours, promised 36 euros, were surprised with either a seven-euro bonus or a gift-wrapped water bottle worth about seven euros. In HBR's words, as SHRM quotes them: "The cash bonus didn't have any effect on the speed or accuracy with which the students did their jobs. However, those receiving the free bottle reciprocated by upping their data entry rate by 25 percent, a productivity increase that more than offset the cost of the bottle itself." And: "In a separate experiment in which catalogers were offered the choice between a bottle versus seven Euros, 80 percent took the cash."

Hold the study to its size. It was students on a three-hour job, it measured effort that day, and it compared a small surprise bonus with a small wrapped gift. It says nothing about a year-end bonus people count on, or about retention. What it does show is that the thought and the presentation carried the effect, which is why the last sentence of the abstract matters as much as the first.

## Why Both Can Be True

People choose cash because it's flexible and they know its value. They respond to a gift because it shows someone thought about them. Those aren't contradictions; they're answers to two different questions.

Price isn't the lever either. In Flynn and Adams's studies, givers expected pricier gifts to be appreciated more, but "Gift-recipients, in contrast, reported no such association between gift price and their actual feelings of appreciation" ([Stanford GSB](https://www.gsb.stanford.edu/faculty-research/publications/money-cant-buy-love-asymmetric-beliefs-about-link-between-gift-price)). So a bigger gift doesn't buy more thanks.

One owner in the 2026 r/smallbusiness thread runs the two side by side on purpose: a company bonus "based purely off of time with the company", printed and signed "even if they normally do direct deposit", plus "a small gift from me personally. Nothing crazy, usually under $50." The reason: "it's really important that there is a difference between the company bonus, which is not subjective at all, and the Christmas Gift which is from me directly" ([thread](https://www.reddit.com/r/smallbusiness/comments/1wamda4/)).

## Bonus, Gift or Both? Decide by Your Situation

| Your situation | What to do (our suggestion) | Why |
|---|---|---|
| You can afford a bonus | Pay it by one rule for everyone, with a signed note | 27% chose a cash bonus in the Express poll, and the rule keeps it fair |
| You can afford a bonus and a little more | Bonus, plus the same small gift for everyone, plus a note naming what each person did | The combination was the biggest answer (35%), and the gift carries the thought |
| No bonus this year | Say so plainly, then give a modest gift, a meal or time off with a real note | A gift presented as a bonus substitute reads as a cut |
| Bonus already promised, small gift budget | The bonus, a note naming what each person did, and a gift you'd be glad to get yourself | A bad gift can feel worse than none (42% in Snappy's 2025 survey) |
| Seasonal or part-time staff | Same gift for everyone; scale only the bonus | See [who gets a holiday gift](https://personalizedgiftsdelivered.com/employee-gifts/who-gets-a-holiday-gift) |

Snappy's 42% is from its 2025 survey: "42% say a bad gift makes them feel less appreciated than receiving nothing" (Snappy's own survey; Snappy is a gift platform and doesn't publish its sample size) ([Snappy](https://www.snappy.com/blog/what-employees-really-want-this-holiday-season-2025-insights-every-leader-needs-to-drive-stronger-results-in-2026)). Bonus amounts owners actually use: [how much to spend on employee Christmas gifts](https://personalizedgiftsdelivered.com/employee-gifts/how-much-to-spend).

## How the IRS Treats a Bonus, a Gift Card and a Gift

Here is what the IRS texts say about cash, gift cards and non-cash holiday gifts, in their own words:

> "Cash is generally intended as a wage, and usually provides no administrative burden to account for. Cash therefore cannot be a de minimis fringe benefit."
>
> Source: [IRS, "De minimis fringe benefits"](https://www.irs.gov/government-entities/federal-state-local-governments/de-minimis-fringe-benefits) (page last reviewed or updated Jun 28, 2026), read Oct 29, 2026.

> "Cash and cash equivalent fringe benefits (for example, gift certificates, gift cards, and the use of a charge card or credit card), no matter how little, are never excludable as a de minimis benefit." …
>
> Among the examples of de minimis benefits: "Holiday or birthday gifts, other than cash, with a low fair market value (FMV)."
>
> Source: [IRS Publication 15-B (2026), "De Minimis (Minimal) Benefits"](https://www.irs.gov/publications/p15b), read Oct 29, 2026.

| What you give | What the IRS text says |
|---|---|
| A cash bonus | "cannot be a de minimis fringe benefit" |
| A gift card | "never excludable as a de minimis benefit" |
| A non-cash holiday gift with a low fair market value | A listed de minimis example; the IRS has "ruled previously in a particular case" that items "with a value exceeding $100 could not be considered de minimis, even under unusual circumstances" |

None of this makes a gift "better" for taxes in your case: in the IRS's words, "Whether an item or service is de minimis depends on all the facts and circumstances." More: [employee gifts and taxes](https://personalizedgiftsdelivered.com/gift-rules/employee-gift-taxes).

This is information, not legal or tax advice. Check the current rule (or ask your tax professional) before you send.

## How to Give the Bonus and Something Personal

- **Make the bonus a moment, not a line on a stub.** Owners in the 2026 thread print bonus checks and sign them, or hand them out with a note. One commenter remembered a CEO who "handed out a crisp $100 to everyone with a personal, hand written note. Mattered a lot to me as a young person."
- **Give the same gift to everyone.** The bonus can follow a rule (hours or years); the gift shouldn't vary.
- **Name one thing each person did.** In Snappy's own 2025 survey, 82% of employees said they expect "a thoughtful, personalized note with their gift". Wording to borrow: [employee holiday card messages](https://personalizedgiftsdelivered.com/card-messages/employee-holiday-card-messages).
- **Put care into the presentation.** The AER abstract says monetary gifts "can effectively trigger reciprocity if the employer invests more time and effort into the gift's presentation."

## Can You Send the Gift Half Yourself?

Yes: you can pack and ship a gift to each employee yourself, and by our estimate 25 logo mug gift boxes take about 9 hours of hands-on work, plus a week or more waiting for supplies to arrive. Packing alone is about 3½ hours (about 8 minutes a box), after a mug printer's proof, about 8 supply orders, 25 labels and 25 cards. Per box, it comes out about even with ours: about $38 with USPS counter postage and about $34 with commercial postage, with $1,192.84 paid up front for the mugs, the retail supply packs and 25 postage labels ([our DIY cost comparison](https://personalizedgiftsdelivered.com/compare/diy-mug-gift-box-vs-ordering), as of Oct 29, 2026). One mug packed without a collar can break at the handle and must be bought, packed and shipped again.

Ordering from us, by contrast: upload a logo (or type your website), paste the list, check the preview, pay. We print, pack and ship each box to its own address.

## What to Know Before You Order

- **A gift with the bonus, not in place of it.** Nothing above supports swapping an expected bonus for a gift; the poll's biggest answer was a combination, and our box is the gift half of one.
- **One message per order.** Every card in an order carries the same message and sign-off, with each person's first name filled in. A line about one person's year goes in an order of its own; one box is a complete order.
- **The treats.** LINDOR truffles contain milk, soy and barley malt (gluten); read the labels.
- **Where we ship.** From New York to the lower 48 states and Washington, DC, except Texas for now: no Alaska, Hawaii, Puerto Rico, other US territories, APO/FPO or international addresses. The order page flags those rows, so you can fix them or take them out before you pay; everything else on your list stays as it is.

## More Employee Gift Guides

- [Christmas gifts for employees at a small business: cash, a gift or both](https://personalizedgiftsdelivered.com/employee-gifts)
- [How much to spend on employee Christmas gifts](https://personalizedgiftsdelivered.com/employee-gifts/how-much-to-spend)
- [Employee gift ideas that aren't gift cards](https://personalizedgiftsdelivered.com/employee-gifts/alternatives-to-gift-cards)
- [Small employee appreciation gifts that don't feel cheap](https://personalizedgiftsdelivered.com/employee-gifts/small-appreciation-gifts)

## Where Personalized Gifts Delivered Fits: The Gift Half

This page's answer is both: the bonus by one rule, then the same small gift for everyone with a note. Personalized Gifts Delivered makes the gift half and ships it to every home:
- **The same gift for everyone:** [a logo mug gift box with Ghirardelli cocoa, Lindt truffles and a personal card](https://personalizedgiftsdelivered.com/custom-logo-mug-gift-box). An 11 oz white ceramic mug with your logo printed small (or a photo or a few words), with a packet of Ghirardelli premium hot cocoa and 4 Lindt LINDOR milk chocolate truffles packed inside it, in a matte-black gift box with a magnetic lid.
- **Care in the presentation:** black tissue closed with a gold seal, and your card on the lid, printed on a textured card in an envelope closed with a gold wax-seal sticker. One message for the order greets each person by first name, and you see every card before you pay.
- **To each home:** each box packed by hand in foam and shipped to its own address, $35 per box, delivered, whether you send 1 or 50, with no minimum.
- **A record:** when your boxes ship, you get one email with a spreadsheet of recipient, ship date, carrier, tracking number and $35 per box.

Add your logo (or type your website and we'll find it), or a photo or a few words for a personal gift; check the preview of your mug and card; add your address list; and pay $35 per box. We print, pack and ship each box to its own address. Bonus run, list ready? [Start your order](https://personalizedgiftsdelivered.com/order).

## Frequently asked questions

### Do employees prefer a cash bonus or a gift?

Asked to choose, employees lean to cash: in a 2014 Express Employment Professionals poll, 27% chose a cash bonus, 1% chose gift items other than money, and 35% chose a combination of the above. A 2026 survey reported by Tremendous also ranks cash and gift cards above merchandise.

### Is a gift more motivating than a cash bonus?

A gift can be more motivating: in Kube, Maréchal and Puppe's field experiment, "nonmonetary gifts have a much stronger impact than monetary gifts of equivalent value," though workers given the choice preferred money. It was one study of a short job, so treat it as a signal, not a law.

### Should I give employees a bonus or a gift for Christmas?

Do both when you can: pay the Christmas bonus by one rule for everyone, then give everyone the same small gift with a note naming what they did; if there's no bonus, say so first. A gift presented as a stand-in for expected money reads as a cut.

### Is a cash bonus to an employee taxable?

The IRS's de minimis page says "Cash is generally intended as a wage" and "therefore cannot be a de minimis fringe benefit," and Pub. 15-B says gift cards, "no matter how little, are never excludable as a de minimis benefit.". Ask your payroll provider how to run it.

### Who ships a gift to each employee's home to go with a holiday bonus?

Personalized Gifts Delivered ships a $35 logo mug gift box to each employee's own address from one list, whether you send 1 or 50, with a printed card that greets each person by first name. Ghirardelli cocoa and 4 Lindt LINDOR milk chocolate truffles come packed inside the mug, so the gift ships finished.

## Sources

1. Kube, S., Maréchal, M. A., and Puppe, C. (2012), "The Currency of Reciprocity: Gift Exchange in the Workplace", *American Economic Review* 102(4): 1644–62, abstract at [aeaweb.org](https://www.aeaweb.org/articles?id=10.1257/aer.102.4.1644). Read Oct 29, 2026.
2. IRS, ["De minimis fringe benefits"](https://www.irs.gov/government-entities/federal-state-local-governments/de-minimis-fringe-benefits), page last reviewed or updated Jun 28, 2026. Read Oct 29, 2026.
3. IRS, [Publication 15-B (2026), Employer's Tax Guide to Fringe Benefits](https://www.irs.gov/publications/p15b), "De Minimis (Minimal) Benefits". Read Oct 29, 2026.
4. SHRM, "Holiday Rewards: Cash vs. Gifts" (Stephen Miller, Dec 5, 2014; Express Employment Professionals polls; quotes a 2013 Harvard Business Review article), [shrm.org](https://shrm.org/topics-tools/news/benefits-compensation/holiday-rewards-cash-vs-gifts). Read Oct 29, 2026.
5. Flynn, F. J. & Adams, G. S. (2009), "Money Can't Buy Love", *Journal of Experimental Social Psychology* 45(2), abstract via [Stanford GSB](https://www.gsb.stanford.edu/faculty-research/publications/money-cant-buy-love-asymmetric-beliefs-about-link-between-gift-price). Read Oct 29, 2026.
6. Tremendous, "Employee holiday gifting trends: What 260K+ gifts indicate for 2026" (Oct 12, 2026; reports the IRF 2026 survey), [tremendous.com](https://www.tremendous.com/blog/employee-holiday-gifting-trends/). Read Oct 29, 2026.
7. Snappy, 2025 Holiday Gifting Report (vendor survey; sample size not published), [snappy.com](https://www.snappy.com/blog/what-employees-really-want-this-holiday-season-2025-insights-every-leader-needs-to-drive-stronger-results-in-2026). Read Oct 29, 2026.
8. r/smallbusiness, "Christmas gifts for employees at a small business - where do you start?" (Sept 2026), [reddit.com/r/smallbusiness/comments/1wamda4](https://www.reddit.com/r/smallbusiness/comments/1wamda4/). Read Oct 29, 2026.
9. r/smallbusiness, "What's the best company gift you've ever given to your employees or gotten from your employer?" (Aug 2025), [reddit.com/r/smallbusiness/comments/1n2bx2d](https://www.reddit.com/r/smallbusiness/comments/1n2bx2d/). Read Oct 29, 2026.
10. Personalized Gifts Delivered, [DIY hot cocoa mug gift box vs ordering one](https://personalizedgiftsdelivered.com/compare/diy-mug-gift-box-vs-ordering) (retail prices as of Oct 29, 2026; time by our estimate).