In an era marked by widespread layoffs and economic uncertainty, many executives are wrestling with an uncomfortable question: Is it appropriate to throw a holiday party or give employee gifts after colleagues have lost their jobs?
The knee-jerk reaction might be to cancel celebrations entirely. After all, won't it seem tone-deaf? Won't remaining employees resent the expense?
According to Mindi Cox, chief people officer at employee recognition software company O.C. Tanner, skipping holiday celebrations is actually the worst thing you can do.
The Cultural Pitfall Leaders Need to Avoid
Cox has seen this pattern play out time and again. After making difficult business decisions, organizations fall into a predictable trap.
"One of the pitfalls I see organizations get into culturally when they've been through some hard business decisions is that they think, 'Well, we did that, so we really shouldn't spend money or give attention,' or 'We had to do something hard, so we shouldn't do something happy,'" Cox explains.
Her take? This approach is completely backward.
"It's exactly the wrong approach culturally, because these are the people you need to rally. These are the people you need to win back."
How to Celebrate Without Being Insensitive
The key is striking the right balance. Cox recommends that leaders acknowledge the challenging times openly while framing the holiday season as an opportunity to celebrate gratitude and come together as a team. A heartfelt letter from the CEO can go a long way in setting the right tone.
The good news? Your employees actually want to celebrate. Recent data from food tech platform ezCater shows that more than 80% of U.S. employees plan to attend their company's holiday celebration this year—a notable jump from 70% last year. People are craving connection and moments of joy.
It Doesn't Have to Be Extravagant
Cox emphasizes that you don't need a lavish budget to make an impact. Whether it's a casual holiday party in the office or something as simple as a box of chocolates with a handwritten note, what matters is the gesture itself. These moments build connection and strengthen company culture during times when both are desperately needed.
Consider Practical Gifts That Ease Real Burdens
In times of economic stress, practical gifts can be especially meaningful. At O.C. Tanner, employees will receive $200 in cash this year specifically for buying groceries for their Thanksgiving meals—a tradition the company has maintained since the 1970s, though the amount has evolved over time.
Gifts that address real financial pressures show employees you understand what they're going through and want to help in tangible ways.
What About Employees Who'd Rather Have a Raise?
Some employees will inevitably grumble that they'd prefer a raise or bonus over "forced fun" or gifts. How should leaders respond?
Cox suggests clearly separating these conversations. Holiday celebrations and compensation discussions serve different purposes and should be treated as such. Make it clear there's a time and place for salary negotiations, but that moment isn't now.
Cox's advice to executives is simple and direct: "Don't overthink it. But do something, because the silence is deafening."
In difficult times, your remaining employees need to know they're valued and that there's still something worth celebrating. A holiday party or thoughtful gift isn't about ignoring hardship—it's about affirming that you're all in this together, and that better days are ahead.
Sometimes the most important message you can send is simply that you still care.