For companies hard hit by the recession, big end-of-year bonuses or elaborate holiday celebrations are likely out of the question. But that doesn’t mean the Grinch has to steal all the fun.

There are cost-effective ways to keep employee morale up and show appreciation for the hard work they do all year. For example, an OfficeTeam survey this summer found that 38 percent of workers want flexible schedules as a benefit, while 32 percent preferred leaving work early on Fridays.

“That is great if the company can afford that,” said Suzi Lemen, CEO of Dynamic Corporate Solutions Inc. “People like an afternoon off, especially this time of the year.”

If a business is trimming or cutting certain traditions, be up front and tell the employees. “Honesty is the best policy,” Lemen said. “Tell them, ‘We’ve been having a rough year, you know that, but it is the holidays and we are very appreciative of all the work you do.’ [So, while the company] used to go to a hotel or a restaurant and have a party, this year maybe it’s an in-house lunch or a potluck. Maybe [they] still want to do the gift exchange [or just a card exchange], but limit it to the items you get from the dollar store. There are things you can do to still have fun, but that are less expensive. Just be creative.”

It’s also a good idea to get input from the employees about what they want to do.

“Why not put it in their hands?” said Terri Leach, branch manager of the Robert Half International Jacksonville, Florida, office. “Instead of saying, ‘We don’t have $500,’ it’s, ‘We have $150. Here’s the budget. Let’s talk about what we can do as a team.’ Maybe they want to bring in a pizza party or ice-cream sundaes. Let them be creative.”

Some companies are putting the emphasis on volunteering this year.

“We decided to waive any funds that would go to a branch to host a party and in lieu of that we are donating toys—unwrapped gifts to the Boys and Girls Club,” Leach said. “We just felt like it has been a very challenging economy for everyone and what a great, rewarding feeling to help someone out.”

The Subaru dealership in Jacksonville, Florida, is volunteering with Meals on Wheels, providing four Foresters and the time eight employees would normally be working to deliver meals to seniors.

“We did the two days prior to Thanksgiving and we’re doing a holiday event in December: We’re making this a quarterly thing,” said Peyton Porter, marketing director for Subaru of Jacksonville. “Because of the economy, we decided to make giving back to the community a focus this year. We have a lot of employees. This is just one of the volunteer projects we’re doing.

“It helps keep morale up, it keeps people happy with an inner satisfaction that they have been able to do work in the community and that the company has given them the time to do this.”

Kenyonn Demps, director of Meals on Wheels with Urban Jacksonville, Florida, said volunteering also builds a sense of community. “A lot of people have had someone who has been served—their mom, their grandma. People recognize the name and they want to help. For employees who don’t have the money to donate [volunteering is a great solution]. At the end of the day, they are like, ‘Wow. I didn’t know there were so many people in need.’”

“It is very rewarding. You really feel like, ‘I did something today.’ You feel like you were serving a great purpose.”

There are other things business owners can do year-round to show employees how much they are valued. Opportunities to cross-train, to learn new skills, and to be given additional responsibilities go a long way, Lemen said. Don’t forget an honest compliment and a sincere thank you.

“We know from employee surveys that employees, No. 1, are looking for recognition for a job well done and that they are appreciated,” she said. “So, anything the employer can do around that obviously leads to more employee engagement. It can be as simple as just thanking employees when they have done a good job.”