If profits have been lackluster this year, can a company afford to rationalize its traditional holiday bonus program?

On one hand, year-end bonuses can build morale by thanking employees for their tireless efforts. They can also give companies a recruiting and retention advantage as they compete for top employees in a tight labor market. On the other hand, a weak cash flow can make distributing monetary gifts difficult, if not impossible.

The economic rationale is just one reason more and more companies are abandoning the practice of year-end bonuses. Other reasons include sensitivity to workplace diversity, and the overriding concern that holiday bonuses have become an entitlement issue with employees, instead of creating loyalty and building excitement for the upcoming year.

Even if the holiday bonus remains a fixed element in your organization’s culture, it may be time to rethink the types of rewards you want to distribute. Here are some creative alternatives to traditional year-end payouts.

Switch to pay-for-performance programs. By far the most popular shift occurring in companies today is the development of performance-related compensation plans. Tying annual financial rewards to business performance establishes clear expectations about how to qualify for bonuses and reinforces the message that employees have an opportunity to share in the growth. It also promotes teamwork and a keen, continuous focus on the bottom line.

Contribute additional dollars to 401(k) plans. Beefing up benefits, even moderately, can be a practical—and welcome—employee-appreciation gesture.

Give the gift of time. If your organization is known for being family friendly, why not give employees additional time off during the holidays? Paid time off ranks in the top three rewards employees say they appreciate, behind money and recognition. Consider adding a vacation day to the season, or offer extended lunch hours to let employees complete their shopping and other holiday errands.

Spread goodwill in the workplace. Little surprises during the workday can have a big impact on morale, especially around the stressful holiday season. Sponsor chair massages or host a holiday film in the lunchroom, complete with eggnog and popcorn.

Draw for prizes. Prizes are a fun alternative to across-the-board gift giving. Some organizations turn prize distribution into a spirited game of Let’s Make a Deal, giving each employee a mystery envelope, along with the opportunity to trade up for even more mysterious prizes. Some envelopes contain major prizes, like trips or cash; others contain smaller-dollar gift certificates or coupons. Names are then drawn from a hopper giving employees the chance to trade their envelopes for mystery prizes. The more tenure an employee has, the more chances that employee has in the hopper.

In the end, some employees win big, but everyone gets something of relative value, and the entire company has a good time in the process.