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 any potential awkwardness around the appropriateness of the gift for certain individuals. The value of the gift, however, remains important to ensure it’s meaningful but not excessive. A thoughtful, well-considered voucher or gift that fits within the company’s budget can demonstrate care and appreciation without overstretching resources. Ultimately, the goal is for employees to feel acknowledged and giving them the choice of how to spend their gift can be a way to increase their satisfaction with the gesture.
The Takeaway
Whether to have a year-end party, offer gifts, or both, is a decision that requires careful consideration of several factors, from company performance and cultural norms to employee engagement and morale. The key is not just about the financials, but also about the message the company wants to send. In times of challenge, leadership should consider whether such celebrations can be a unifying force for the remaining team, offering a moment of solidarity and shared purpose as the organization moves forward.
Finally, it’s less about the specifics of the party or the gift, and more about ensuring that employees feel valued, supported, and connected to the company’s mission and vision. Whether it’s a grand party or a simple gesture of appreciation, the goal should always be to foster a positive and engaged workforce ready to take on the next chapter.
As a last comment :
Let me wish you a Merry Christmas for those who celebrate it and the best for 2026. Hoping the new year will bring you good health and a lot of happiness—stay tuned, the next blog will come around January 10!
Gift & Party or No Gift & Party at Year-End: That Is the Question
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. As the year draws to a close, many organizations face a recurring question: Should we host a year-end celebration? Should we offer gifts to employees? Both? Or neither?
This decision, seemingly simple, carries significant implications for employee morale, company culture, and the message leadership sends to its workforce.
Who Decides and How?
In most cases, management makes the call, though in some countries works councils or employee committees may play a role. Regardless of governance, the company ultimately funds these initiatives, directly or indirectly.
Traditionally, financial performance drives these decisions. While understandable, it should not be the sole criterion. Other factors matter:
- Historical practices: What has the company done in previous years?
- Cultural expectations: How do organizations in the same region approach year-end celebrations?
- Employee engagement: How connected are employees to the company and to each other?
- Transparency: How aware are employees of the company’s financial health?
Cancelling a celebration often saves little compared to overall costs, whereas the impact on morale can be profound. Unfortunately, some leaders adopt this approach for short-term reasons, overlooking the long-term consequences.
Beyond Financials: The Message Matters
The real question is: What message does management want to convey?
Actions should align with the year’s overall employee experience. For example:
- Is a party appropriate during an ongoing restructuring? Probably not.
- But if restructuring is complete, could a celebration help rebuild morale and unity? Absolutely.
These decisions are not just logistical, they are symbolic. They reflect how leadership values its people and how it intends to steer the organization forward.
The Purpose and Benefits of Year-End Celebrations
Year-end parties and gifts are more than seasonal gestures. They serve strategic purposes:
- Boost morale and engagement
- Reinforce company culture
- Express appreciation for hard work
Research confirms this: companies with strong recognition/celebration cultures report 31% lower turnover and 12% higher productivity .
A well-planned celebration can unite teams across departments and geographies, fostering collaboration and trust. For remote or hybrid organizations, these events may be one of the few opportunities for face-to-face interaction a critical element in building belonging.
Gifts, too, matter. Whether modest or substantial, they signal gratitude. Often, it’s the thought behind the gesture that resonates most. Even small, personalized tokens can significantly boost morale and loyalty.
Context Is Key
Celebrations must reflect reality. A lavish event after layoffs can feel tone-deaf. Conversely, a simple, heartfelt gesture during tough times can strengthen trust. The goal is balance, ensuring that actions align with circumstances and values.
The Gift Question: Standard or Personalized?
Should everyone receive the same gift or have a choice?
- Standard gifts (e.g., branded items, food baskets) promote equality but may not suit diverse preferences.
- Choice-based gifts (vouchers, gift cards) offer flexibility and personalization, though they require more logistics.
Cultural traditions also play a role. In some regions, food gifts are expected. One company famously faced backlash when it replaced its traditional Thanksgiving turkey with salmon due to supply issues proof that consistency matters!
Gift cards are increasingly popular, allowing employees to choose what they value most. The amount should be meaningful yet reasonable, reflecting appreciation without excess.
The Strategic Lens
Ultimately, these decisions are not about extravagance. They are about employee experience. A thoughtful gesture, big or small, can:
- Reinforce trust and loyalty
- Strengthen cultural cohesion
- Prepare the team for the challenges ahead
Leadership should view year-end celebrations as an investment in engagement, not a discretionary expense. In times of uncertainty, these moments of connection can be a stabilizing force.
The Takeaway
Whether to host a party, give gifts, or both depends on:
- Financial health
- Cultural norms
- Employee engagement
- The message leadership wants to convey
The specifics matter less than the intent: to make employees feel valued and connected to the company’s mission and vision. Whether it’s a grand party or a simple gesture, the goal should always be to foster a positive, engaged workforce ready for the next chapter.
