Staff would actually appreciate the options considered so far. However the best morale booster to staff i think should be something to help improve their lifes; that to remember and appreciate top management of the company. you need to evaluate staff toknow what they desire but do not have the means to attain or unable to meet because of job exigencies. So depending on amount budgeted think of something that would brigthen their lifes not just for one day.

Isoghom

How about a letter from the President/Manager to the employee's spouse, significant other, etc. with a note telling them how much you appreciate their loved one and a gift card to a restaurant for both of them?

We have two functions a year, one dress up dinner in December and one summer outing. We usually go to Dave & Busters, have a lunch, then all the families go and play what kind of games they like with the player cards we give them.

I know this is extremely late, but wanted to share what my boss is going to do...We are a very small company (always less than 10 employees) and for some reason receiving timesheets in a timely manner is beyond ridiculous, so as an 'incentive', also a 'morale booster' he offered the techs a $50 gas card...with the prices of gas (in California) at $4.13 it is really helpful.  When it was mentioned at the meeting....it put a smile on everyone.....too bad I don't submit timesheets...:-) 

twinmom:

Where did you get the coffee mugs with company logo? 

If you aren't already receiving junk mail catelogs, just make your first order from any of the companies you might find under a google search of "promotional gifts" or "employee morale boosting prizes" and so on.