Originally published October 30, 2023. Last updated December 3, 2025, to reflect current incentive trends and employee expectations heading into 2026.
Year-end is a natural moment to pause, look at what your teams accomplished, and acknowledge the people who made that progress possible. High performers, in particular, carry a significant share of the workload throughout the year. Recognizing their contributions with meaningful rewards helps reinforce strong performance, build motivation for the year ahead, and support long-term retention.
As you prepare for 2025 year-end rewards and plan toward 2026, here are several areas to consider.
1. Travel rewards continue to resonate
Travel is still one of the most effective ways to recognize top performers. The experience stands out, and the time away helps people reset before starting a new year of work. Many organizations offer flexible travel dates so employees can choose what works best for them.
When shaping a travel reward, focus on a few basics that matter to employees:
- Locations that are easy to reach
- Clear details about what’s included
- Support with planning
- Enough flexibility for people to personalize the experience
These elements do more to shape the value of the reward than the destination itself. The simpler the process, the better the experience.
2. High-quality gifting options add valuable choice
Not every top performer prefers travel. Some appreciate something tangible, especially when it fits their interests or lifestyle. High-quality gifting options offer recognition that feels immediate, personal, and easy to enjoy.
A stronger gifting program usually includes:
- A curated selection rather than a long, overwhelming catalog
- Recognizable national brands and reliable product categories
- Items that feel substantial and aligned with different types of interests
- A clear explanation of how to redeem or select the reward
These choices help employees feel considered and give them the ability to choose something they’ll use and appreciate. It also helps organizations manage costs and logistics while still delivering a meaningful experience.
3. Match rewards to contribution with clear criteria
Employees want year-end rewards to feel fair. Clarity and consistency help build that sense of fairness. Reviewing performance examples throughout the year (rather than waiting until December) helps leaders make more grounded decisions.
Consider establishing criteria early and revisiting them mid-year. Many organizations look at:
- Measurable results
- Steady reliability during busy periods
- Leadership during key projects or challenges
- Influence on team culture or collaboration
- Support provided to peers and customers
When expectations are visible and predictable, employees understand how decisions are made and feel more confident that the reward represents the work they delivered.
4. Provide context when announcing rewards
A year-end reward has more impact when employees understand the reason behind it. Most high performers want to hear what stood out about their work and why the organization saw it as noteworthy.
A strong message usually includes:
- The work the employee delivered
- Specific challenges or obstacles they handled
- The effect their work had on the team or business
- A clear connection to goals or priorities from the past year
This type of context helps the reward feel earned, specific, and aligned with the employee’s actual contributions. It also provides positive examples for the broader team.
5. Start planning well before year-end
Year-end reward programs run more smoothly when the planning begins early. Mid-year reviews help confirm criteria, budgets, and reward categories. Early fall is often when leaders begin identifying top contributors and developing the messaging that will accompany the recognition.
Advance planning also helps organizations:
- Secure travel inventory
- Finalize gifting options
- Coordinate with vendors
- Avoid rushed decisions
- Prepare managers for conversations with their teams
A bit of structure throughout the year reduces pressure in November and December and creates a better experience for employees.
Bringing it together
A strong year-end reward program does more than wrap up the calendar year. It gives high performers a clear sense that their work mattered and sets the tone for the months ahead. When rewards are thoughtful, consistent, and communicated with intention, they strengthen motivation and trust across the team.
You can build most of this with steady habits throughout the year: clear expectations, regular feedback, and a plan that leaves room for both structure and personal preference. If you ever need help shaping the details or want input on what’s working across other organizations, Xceleration is always available as a resource.