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As we approach the end of the year, I’ve decided to address a topic that’s a bit lighter than usual for my blog. In many companies, the same question comes up around this time: should we throw a year-end party to celebrate the season,  mark cultural events like Diwali ,  Christmas, etc..? And if so, should the company also offer a gift to employees, and what should the value of that gift be? Or simply have no party but still go with a gift ? or do nothing ? Who decides and how? For the sake of this discussion, let’s assume that the decision falls on management rather than the work council, though this can vary depending on the country and specific regulations. Ultimately, the company is the one providing the funds, whether directly or indirectly. The decision to host a party or offer gifts is often linked to the company’s financial performance. It’s understandable, of course, but financial health isn’t the only factor to consider. For example, what has been the company’s past practice? How do other companies in the same geographical region handle year-end celebrations? What’s the level of awareness among employees about the company’s financial situation, and how transparent has management been with this information? What’s the level of employee engagement? How often do people have the chance to connect physically in the office? The list of considerations can go on. Often also making the decision to cancel an event can have devasting impact on employees whereas the savings generated are generally marginal compared to the overall financial of the company. But it is easy to do and driven by short terms views, some leaders are taking this position. In the end, beyond the financials, it’s about the message management wants to send to the organization. The decision should align with the actions employees have experienced throughout the year. Sometimes, this is where the challenge lies. Can management justify a year-end celebration when a restructuring is underway? Would that be appropriate? From my standpoint, the answer is probably no, but let’s consider a different scenario. What if the restructuring has already been completed by year-end? Is it still wrong to celebrate while some employees have already left, or is it beneficial to gather the remaining team together, to build morale and foster a sense of unity as they prepare for future challenges? So, in general, what’s the goal of these year-end parties and the potential benefits from a management perspective? The Purpose and Benefits of Year-End Celebrations Year-end parties and gifts can serve multiple purposes beyond just celebrating the holidays. From a management perspective, the key benefits often centre around boosting employee morale, reinforcing a sense of community, and thanking the team for their hard work. After all, the holiday season is a time for reflection and appreciation, and a well-organized celebration can go a long way in showing employees that they are valued, especially after a challenging year. Research supports this: recognition and social events are linked to higher engagement and retention. Companies with strong recognition cultures report up to 31% lower turnover and 12% higher productivity (Incentive Research Foundation, 2023). Beyond the “feel-good” factor, a year-end gathering can also serve as an opportunity to reinforce company culture. It’s a chance to bring together teams from different departments or remote locations, foster stronger interpersonal relationships, and encourage a more collaborative atmosphere. For employees who may not interact much during the year, the party can be a rare but important opportunity for bonding. Additionally, offering a gift whether it’s a small token of appreciation or something more substantial can be a gesture that helps employees feel acknowledged. It doesn’t always have to be extravagant; often, it’s the thought and sincerity behind the gift that counts. Studies show that even small, personalized gestures can significantly boost morale and loyalty . A gift, when done right, can express gratitude and appreciation for employees’ dedication and contributions. However, companies should be mindful of how these celebrations are framed. If a company has undergone significant restructuring or faced financial struggles, a lavish celebration might seem out of touch with the current reality. The key is balance ensuring that any party or gift aligns with the company’s situation and doesn’t create an impression of extravagance in times of difficulty. The Value of the Gift: One Size Fits All or Employee Choice? When it comes to the value of the gift, there are a few elements to weigh. One of the main questions is whether the company should choose a single gift for all employees or offer a variety of options to cater to different tastes and preferences. Some companies opt for a standard gift, such as a branded item or a uniform gift package, which can create a sense of equality among employees. However, the challenge with this approach is that it may not reflect the diverse interests or needs of the team. On the other hand, offering a selection of gifts might better cater to individual preferences but could be more logistically complicated to organize. Some times especially when it has been recurrent, the gift is so established that it can not be changed or replaced. I have in mind an example of a company who was offering every year a turkey to all employees for Thanksgiving and one year no enough quantity was delivered. In compensation some employees got Salmon instead. The reactions of those employees have been extremely negative and the company had to come back the following year to turkey for every one and securing absolutely the delivery !  The focus on food items is generally well appreciated and according to the country and cultural context is fully expected. An increasingly popular alternative is to provide employees with vouchers or gift cards, allowing them to choose what they want. This option provides greater flexibility and personal choice, empowering employees to select something they genuinely value, whether it’s for personal use or a special treat. It also avoids

In today’s VUCA environment (volatile, uncertain, complex, and ambiguous)  decision-making is not just a leadership competency; it is the lifeline of organizations. Leaders face uncertainty almost daily and doing nothing is rarely an option. Leadership today feels like steering a ship through relentless storms: holding the course, making critical choices to protect the vessel, and ensuring the crew remains safe and motivated. Organizations and their leaders face challenges like those of a seasoned captain at sea balancing growth ambitions with prudence, safeguarding the future, and keeping teams engaged despite turbulent waters. Yet, the way leaders approach decision-making varies dramatically, and the consequences of these choices can be profound. Sometimes, the ship or the company simply disappears. Understanding VUCA and Its Impact on Leadership The term VUCA, coined by the U.S. Army in the 1990s, describes environments marked by volatility, uncertainty, complexity, and ambiguity. Today, it defines the global business landscape, amplified by digital transformation, geopolitical shifts, and disruptive technologies like AI and Industry 4.0. Researchers have introduced VUCA Prime Vision, Understanding, Clarity, and Agility as a counter-framework to help leaders respond effectively. These qualities are essential for decision-making that is both fast and informed. Two Contrasting Approaches to Decision-Making 1. The Intuitive Leader Some leaders lean heavily on intuition, trusting their instincts to guide them through uncertainty. Intuition draws on pattern recognition and past experiences, enabling quick decisions in high-pressure situations. I recall a conversation with a leader who once told me: “With all your systems, models, and assessments, I can achieve the same results by flipping a coin or following my gut.” At first, I was stunned. But this leader had built a $2 billion business with thousands of employees a testament to the power of entrepreneurial instinct. This approach works well in fast-moving environments or during the early stages of a business, where speed and adaptability are paramount. However, as organizations grow and complexity multiplies, the limitations become clear. Without structure, decision-making can devolve into chaos. Teams lose clarity, priorities blur, and what once felt agile turns into confusion. Research Insight: Intuitive decision-making correlates strongly with entrepreneurial success but weakens as organizational complexity increases. 2. The Analytical Leader On the other end of the spectrum are leaders who rely extensively on data, tools, and models to identify the best course of action. Structured decision-making offers rigor and confidence, but it comes with two significant drawbacks: Even with exhaustive analysis, outcomes in a VUCA environment remain unpredictable. Over-engineering decisions can be just as dangerous as relying solely on gut instinct. The Science of Balance: Combining Intuition and Analysis Research consistently shows that blending intuitive and analytical thinking leads to better outcomes. Leaders who integrate both approaches, using data for validation and intuition for speed achieve higher adaptability and resilience. Best Practices for Balanced Decision-Making: Cognitive Biases and Leadership Pitfalls Leaders must also guard against biases like confirmation bias, overconfidence, and the Dunning-Kruger effect (cognitive bias where people with low ability or knowledge in a particular area tend to overestimate their competence, while those with high ability often underestimate their competence.), which can distort judgment under uncertainty. Intellectual humility acknowledging what you don’t know is a critical leadership trait in complex environments. Frameworks for Decision-Making Under Uncertainty Harvard Business Review and HEC Paris recommend structured approaches such as: Ask what could make you regret this decision, what alternatives you missed, and whether the decision is reversible. The Leadership Imperative Ultimately, decision-making is not about being right all the time, it’s about being decisive, learning fast, and adapting. Leaders who master this balance will not only steer their organizations through storms but also inspire confidence and resilience in their teams. Your Call to Action Ask yourself: The next storm is already forming on the horizon. Your ability to decide and to help others decide will determine whether your organization thrives or sinks. Start building that balance today !