Holiday stress is killing your employees — here’s how to help them
With another holiday season in full swing, employers face a familiar challenge: helping their workforce navigate the complex blend of year-end pressures and holiday expectations.
The stakes are higher than many leaders realize. Recent data from employee recognition program Workhuman shows that while the season brings joy and celebration, it also generates significant stress for employees, particularly around finances, work-life balance and performance expectations.
That stress has a well-documented impact on individual employees as well as the business overall. Recent research from the Society for Human Resource Management (SHRM) found that 44% of 1,405 U.S. workers surveyed feel burned out at work — feelings that only intensify this time of the year. In fact, more than half of us say we’re experiencing more holiday stress than ever.
“It’s important to make sure employees feel appreciated and supported during the holiday season,” said Traci Pesch, practice lead and strategist at Workhuman. “Whether it’s work-related stressors or something personal going on in the life of an employee that makes this time extra difficult, leaders need to make a concerted effort to celebrate what makes those people such valuable contributors to their organization.”
The cost of stress
According to Workhuman’s survey of 3,000 full-time employees across the U.S., U.K. and Ireland, financial concerns are the primary source of holiday stress for 64% of employees, with 35% depending on year-end bonuses to cover their holiday expenses.
Meanwhile, one-third of workers report feeling more stressed during the holiday season due to increased workloads and pressure to meet year-end goals.
The situation is particularly acute for working parents. A survey of 500 working parents in the U.S. by Bright Horizons and Opinium Research found that nearly half of parents with children aged 0-12 experience more stress during the holidays, mainly due to juggling work and childcare.
The survey determined that mothers are significantly more likely to experience increased stress (55%) compared to fathers (30%).
Charlotte Anderson, head of people experience at design platform Canva, emphasizes that recognition should be a year-round priority, though it takes on special urgency around the holidays. “Developing a strategy for recognizing employees at the end of the year is especially important as the holiday season often brings heightened stress, fatigue and burnout,” she said. That observation is supported by Canva’s recent workplace survey, which found that three-quarters of respondents wish they felt more appreciated.
The impact of recognition cannot be understated. Canva’s research, based on responses from 1,500 employees in the U.S. and Australia, indicates that recognition boosts motivation (among 87% of employees), confidence (85%) and productivity (84%).
However, Anderson warns against taking a one-size-fits-all approach. “Team members want to feel seen as individuals,” she said, stressing that just half of those surveyed felt their bosses recognized their unique qualities.
What truly matters
Rather than traditional perks or awards, Anderson suggests focusing on what truly matters to employees: flexibility, inclusion, work-life balance and opportunities for growth. Some practical approaches include:
- Offering heartfelt notes or “hype reels”
- Fostering two-way communication and feedback
- Embedding “surprise and delight” moments throughout the employee lifecycle
- Tying recognition to core values
- Creating meaningful celebrations with visual communication
Those strategies align with what Sandra Moran, chief customer experience officer at WorkForce Software, advises, noting that what matters most to many employees is having control over their schedules. That is particularly critical for deskless and shift-based workers, who often face greater scheduling challenges around the holidays.
Consistency is key when it comes to recognition programs. Canva’s research found that among highly satisfied employees, 7 in 10 are recognized at least a few times a month. In contrast, for neutral or dissatisfied employees, half are recognized just once a month or less while 25% never get recognition.
Sarah Sarkis, clinical psychologist at Exos, recommends incorporating recovery periods throughout the workweek. Her suggestions include shifting to 25-minute (instead of half-hour) and 50-minute (as opposed to hour-long) meetings to allow for microbreaks and encouraging leaders to model healthy behaviors by making their wellness activities visible on their calendars.
There’s no time like the beginning of another new year for resetting. More than 4 in 10 employees expect to return to work refreshed after the holidays, according to the Workhuman survey. That suggests organizations have a clear opportunity to influence well-being through thoughtful, employee-centered practices that extend beyond the festive season.
“Showing genuine appreciation during this period can help re-energize teams, foster a sense of belonging and close out the year on a positive note,” Anderson said. “This sets the tone for continued engagement and job satisfaction into the new year.”