Christmas provides the perfect moment for employers to thank staff for all their hard work over the year. Done well, it creates a strong foundation for employers to drive year-round performance in 2025.
The atmosphere leading up to Christmas feels more upbeat and festive than it has for several years and with good reason. Investor confidence is growing in British businesses. We’re seeing green shoots of recovery in the UK economy. While it’s too soon for employees to feel flush again, pressure on household finances is easing.
At the same time, employers are balancing an optimistic outlook with the knowledge that growth can only be delivered with a happy and engaged workforce. Faced with a challenging recruitment market and a need to strengthen performance, employers must focus on what sits within their control – showing appreciation for their employees.
Christmas provides employers with the perfect moment for employers to thank staff for the great work they’ve done this year and put in place the building blocks to nurture strong performance in the year ahead. That’s because the three guiding principles of giving effective end-of-year reward also apply to developing a year-round appreciation programme.
3 guiding stars
First, understand how much employees value end-of-year reward. Despite the clear positive outcomes, many HR professionals still struggle to convince the wider business of the value of investing in end-of-year reward This time last year, 36% of employers had no plans to celebrate Christmas or the New Year. And six in ten employees said they didn’t get any form of end-of-year recognition or reward the previous year. [1]
Those employers have missed a golden opportunity to positively influence how employees feel about their employer and loyalty to the wider organisation. Over 60% of people say receiving end-of-year recognition makes them feel appreciated. Four in ten say they feel more positively toward their employer. And a third of employees say an end-of-year reward is a small price for employers to pay for all the hard work through the year [3].
So, the case for getting end-of-year reward right is clear. The big question is – what do people really want from a reward this year, and what is the most practical and effective way to deliver it for organisations with a remote or hybrid workforce
Second, focus reward on employee priorities. While a great party creates a buzz, this year, employers need end-of-year reward to have a longer-term impact on employee morale, motivation, and retention [1]. Impact that sustains the feel-good factor well into the New Year. That means thinking about reward in terms of what employees need.
At the beginning of this year 48% of employers saw financial wellbeing as the biggest threat to employee performance [4]. Although pressure on household finance is easing, economists warn people will continue to feel a hangover from the cost-of-living crisis through next year.
Last Christmas, 42% of families had to tighten their belts and spend less on Christmas, while 18% had to borrow money to afford Christmas presents. Beyond Christmas, 56% of employees have made lifestyle changes due to a reduced household income with 45% not buying clothes, 54% stopped eating out or takeaways. A fifth took a second job or work more hours to increase pay. And 40% have stopped saving [4] For many families, reward that makes food more affordable will be much appreciated and help with the cost of Christmas.
Third, make reward memorable. Research shows that it’s not necessarily the value of what you provide as a reward that counts. The majority of employees say they would be happy with an end-of-year reward worth between £21-50.
That said, a simple cash addition to the pay packet is likely to fall flat; because employees won’t associate the cash with a specific purchase, it makes the reward less memorable.
We all love to be able to choose a gift that matters to us and that shows our boss has really thought about gifting in an employee-centric way. Research suggests that as many as 70% of employees say they’d like to choose their own reward by receiving vouchers or gift cards, for example, and more than half (58%) would like to receive something other than cash at year-end [4].
Appreciate your employees all year round
Take the opportunity, while you are thinking about end-of-year reward to plan how your approach to reap the power of appreciation year-round. At a time when employers are worried about skills and workforce shortages, the case for a consistent, year-round reward and recognition programme is clear.
Recently we asked 2,000 employees what would encourage them to stay in their job long term. Aside from the obvious issues of pay rises and flexible working, the results showed that regular rewards and appreciation are still a top priority for 30% and 25% of people respectively [4].
Sadly, this has not resulted in greater recognition from employers though. Employees feel only 50% of their employers say thank you enough and just 38% give recognition.
Only 32% feel their efforts are acknowledged by their employers. This is a warning sign that employers need to address urgently if they want to keep employees engaged, reduce staff turnover and focus on growth. The key to sustainable growth is to follow through with a consistent strategy that will go some way to keeping employees engaged and motivated throughout the year. Your aim should be to make appreciation part of your organisation’s DNA – fully aligned to what your business is trying to achieve long term, and fully focussed on ensuring that employees buy into that vision by providing all the motivation and support they need.
Finally, remember your recognition scheme should be core to the employee experience in your organisation at all times, so you’ll also need an internal communications plan that doesn’t just cover the launch of a scheme but promotes it through the year. The most effective way to do this is by getting support and advice from specialists in your marketing, PR, and digital teams. This will help you build a programme that reinforces your employer brand and your cost-of-living response.
Ways to say ‘thank you’ with our fast and easy reward and recognition solutions
Say thank you this year the way people want to be thanked with our range of reward solutions – fun, fast and easy ways to get more money into employee’s pockets, show your appreciation, and set the tone for a more rewarding year ahead.
Select eCodes
Easy to set up, send or download, they can be swapped for a huge range of eGift cards and gift cards, including John Lewis, Currys, M&S, and many more big brand names.
Select enables you to send a personalised digital eCode of any value, to any recipient, in any location in minutes for a more engaging reward experience.
With customisable festive email templates, you can send a message of thanks in your own words, and in your own brand too.
References
- (August 2023) Edenred People Barometer 2023
- (17 August 2023) Inflation falls, but is worse yet to come? Work Foundation
- Edenred UK Christmas reward research
- Edenred, Borrow Nation Employee Survey (2022)
