Need to know:
- Employers are moving away from the traditional December party, instead favouring opt-in, day-time, family-friendly and alcohol-optional events.
- For inclusive year-end recognition, focus on values and behaviours. Ensure those who work behind the scenes receive equal recognition, and do not forget those who keep the operations running over the festive period.
- Choice-based, practical rewards remain popular in an ongoing cost-of-living crisis, and sometimes it is the small gestures from leaders that can have the biggest impact.
It might seem like it gets earlier every year, but now is the prime time for employers to start thinking about their festive reward and recognition strategy. And with employee expectations and the external environment shifting, it is also time to revisit outdated traditions and ensure celebrations are as inclusive as possible. Katherine Watkins, HR consultant at Watkins HR Consulting, says: “We have to ditch the one-size-fits-all mince pie and wine approach and start thinking like 2025 not 1995.”
A heightened awareness of diversity and inclusivity at year-end manifests in several ways. Taking a multi-faith lens, for example, recognising different religious holidays such as Diwali, Eid, Hanukkah and Lunar New Year. Ankur Sharma, chief product officer at Perkbox, says: “One of the top priorities is ensuring the use of inclusive language. Terms such as ‘festive’ and ‘year-end’ are more appropriate and welcoming.”
Offering staff flexibility in when they take their annual leave to suit their own cultural and religious celebrations is important.
Choice of celebrations
Any activities at this time of year should be opt-in, adds Sharma. “Employers are favouring daytime, family-friendly, alcohol-optional events,” he says. “Wellbeing days and volunteering opportunities are replacing traditional December parties. Time away from work, [such as] extra annual leave or early finishes, is increasingly seen as a meaningful reward.”
Are we seeing the end of the corporate end-of-year blow-out, then? An HR professional who has seen her fair share of Christmas-party-related disciplinaries, Watkins for one does not mind. “The free bar has quietly slipped from must-have to outdated liability,” she says. “Now, the best festive strategies create social spaces without social pressure: daytime celebrations, multi-location meetups for hybrid teams and events with non-alcoholic options.”
But whatever someone’s faith and preferences, the year-end still provides an opportunity for celebration. While more people are working remotely, the festive period remains the perfect time to get people together in person, whether for a lunch, quiz or team-building activity, says Natasha Newby, employee benefits director at Ilumiti. “Doing so can help with wellbeing and enforces team togetherness and culture,” she adds.
Values champions
It is also a great time for recognition and reflection on the previous year; something which should also be done through an inclusive lens. “Year-end shouldn’t just be about ‘sales targets smashed’ or ‘biggest client win’,” says Watkins. “Those skew recognition towards extroverts, rainmakers and short-term wins.”
Instead, consider giving equal weight to those who have role modelled the desired behaviours and corporate values, as well as those who keep the wheels turning when nobody’s looking.
With any event, it is critical to remember those who cannot make it due to operational demand. This is more important than ever during the festive season. Where possible, celebrations should be staggered so that all shifts and locations are included, Sharma adds.
Practical rewards
When it comes to trends in festive reward, ongoing economic challenges are driving employers towards practical, choice-based rewards, says Sharma. Popular options include e-gift cards and supermarket fuel and food vouchers, with experiences also becoming more popular. Benefits such as additional pay, extra time-off credits for later use or personal appreciation notes from leaders can help those who have to work during festive periods feel valued and engaged.
While budgets are tight in many organisations, inclusive festive reward and recognition does not have to break the bank. Less can often be more, with advent calendars at the start of December often being well received, says Newby. She has also seen innovative ideas linked to environmental, social and governance (ESG), such as planting trees or giving employees flower bomb seeds. “Secret Santa can feel out-dated; one [organisation] I know asked employees to gift items to the local food bank,” she adds.
Quick-win initiatives like a ‘12 days of recognition’ campaign, which could feature daily shout-outs linked to corporate values, paired with micro-rewards, or a Year in Review reel, compiling peer recognition quotes into a short, personal video, can also be effective, adds Sharma.
The most impactful appreciation can often be free, such as handwritten notes from senior leaders, organisation-wide gratitude walls or CEO-led recognition calls, says Watkins. “Pair that with one big symbolic gesture like an extra day off, profit-share or surprise bonus and you hit both the emotional and practical notes,” she says.
Perhaps the most inclusive gesture of all is to remember how challenging many people find the festive period financially and mentally. “January can bring low mood and debt for many, so any benefits to boost wellbeing should be communicated well at this time of year,” Newby advises.
A spotlight on wellbeing can also help people go into the new year as refreshed as possible, ready for whatever 2026 throws at them.
