For any employee of a small business, acknowledgement for a job well done goes a long way while paying returns that endure in both tangible and intangible ways. Feeling a personal sense of accomplishment and belonging fosters job satisfaction, increased productivity, and loyalty - traits and assets that are invaluable to any small business.

But employers often misunderstand the nature of employee bonuses or lack a keen understanding of which types of rewards and incentives are most effective and appreciated. Here are some tips for creating employee bonuses that will keep on giving - both to employees as well as to employers - for the overall benefit of the company:

• Contrary to Popular Belief, Bonus Money May Pay Lower Returns

Cash rewards such as year-end bonuses are valuable and important. But they are also somewhat predictable and anticipated, just as your cab driver or restaurant server expects a reasonable tip for services rendered. Those kinds of "gifts" are sometimes already built into the economic equation. If so, they should not be viewed as special acknowledgement for work above and beyond the call of duty.

To really make an employee feel truly valued and appreciated, acknowledge the work they do and recognize them in a personal, demonstrative way that makes them feel recognized and important. Maybe you can do it best with cash, but couple the cash gift with a creative and personal thank-you to ensure success.

• Celebrate Employees in a Public Way

By recognizing the accomplishments and contributions of an employee in full view of others - including clients, coworkers, and supervisors - the impact is greater than if you do it quietly and privately. This kind of public recognition may take the form of a press release to local business publications, a certificate to hang over the employee's desk, or a lapel pin that identifies them as outstanding.

If you give recognition in front of peers and customers it means that the recipient is a team player worthy of an outstanding reward, and it also serves as an incentive to others while creating company goodwill throughout the community.

Here are other ideas of ways to offer an employee bonus that is both meaningful and personal, while also inspiring to coworkers.

• Offer to pay tuition to an industry training workshop or continuing education program. These types of bonuses generate additional assets for your company while also empowering the employee with the tools and credentials necessary for career advancement.

• Give a mini-vacation, in the form of a gift certificate to a day spa, to a golf tournament event, or to a concert or ball game. Some employers, for instance, score a home run by offering all employees an outing to a sporting event and then declaring a paid day off to attend as a group.

• Buy a productive employee a new computer or let them go to the office supply store and pick out a brand new desk or chair. When they return from their shopping spree, point out that you also designated a special reserved parking space for them.

Unless you have an unusually close friendship with an employee, avoid gifts that might be construed as too intimate or personal. For example, while paying an employees mortgage may be a nice gesture, it could be misconstrued as an attempt to control their personal finances too much or insinuate that others have noticed that they are under too much duress. Giving a bouquet of flowers could mean one thing, whereas planting a tree in a public park in an employee's name means something altogether different.

When defining your bonuses, be creative and practical. Offering better benefits is not just a generous gift, but it can radically change someone's life in a positive way. Similarly, offering profit sharing programs not only gives a financial reward but it also helps to instill a sense of ownership and responsibility. Use your discretion and imagination, and always remember than sincerity is the key to making a bonus keep on giving throughout the entire year.