Cutting back on holiday gifts and raises to employees? You’re not alone, but there are ways to show your employees you appreciate them, even in tough times.

It’s no surprise, given the economic climate, that many small to medium size companies plan to save pennies by eliminating year-end gifts to employees, finds an American Express 2009 holiday survey.

It found:

• 31% of companies are giving end of year bonuses compared with 44% last year
• 35% are giving holiday gifts to employees compared with 46% last year, and
• 16% will give raises compared with 30% last year.

Only trouble, this year has been such a hard slog for many workers that it may be the worst time to let the holidays pass without any festivities or gifts.

After all, many workers in downsized organizations have been called on to work harder, do more and sacrifice the usual perks and benefits.

To avoid looking like Scrooge in a suit, you may want to brainstorm low-cost ways of thanking employees during the 2009 holiday season, including:

American Express found 28% of companies are avoiding laying out cash for gifts by using reward points, bartering, or using their own company’s products/services.

Julie Power is editor in chief of the Internet Marketing Report.  Follow her on Twitter at JuliePower.