Good morning!
In a time where layoffs are much higher than average, the thought of throwing a holiday party or giving employee gifts may make some executives shudder. They might worry that celebrating after people have lost their jobs looks crass, or could upset remaining employees. Mindi Cox, chief people officer at employee recognition software company O.C. Tanner, thinks they should grit their teeth and do it anyway.
“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,’” she said. “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.”
Cox advises company leaders to acknowledge the hard times, but message that this is a season for celebrating gratitude and rallying together. A sincere letter from a CEO expressing this certainly helps, she said.
And people seem to be craving some good cheer. More than 80% of U.S. employees plan to attend their company’s holiday celebration this year—up from 70% last year, according to a recent study from food tech platform ezCater. Cox said doing something for employees, whether it’s a cheap-and-cheerful holiday party at the office or a box of chocolates with a handwritten note, is important for connection and culture.
Practical gifts are another option, at a time when inflation and economic uncertainty are causing stress for many families. This year, O.C. Tanner employees will receive $300 in cash to buy groceries for their Thanksgiving feasts, for example—a tradition Cox says dates back to the 1970s, though the amount given has changed over time.
And what about those employees that may grumble that they’d rather receive a raise or bonus instead of “forced fun” or a gift? Cox advises explaining that there is a time and a place for those conversations, but raises and bonuses should be a different conversation than holiday celebrations.
“Don’t overthink it,” she said. “But do something, because the silence is deafening.”
Kristin Stoller
Editorial Director, Fortune Live Media
kristin.stoller@fortune.com
Around the Table
A round-up of the most important HR headlines.
Big tech companies are seeing a rise in revenue and AI investments, but are still increasingly cutting jobs. Washington Post
Some companies are candidly sharing that AI is the reason they are eliminating jobs. Bloomberg
President Trump’s Equal Employment Opportunity Commission (EEOC) chair Andrea Lucas has shifted the watchdog’s focus to fighting religious discrimination in the workplace. Wall Street Journal
Watercooler
Everything you need to know from Fortune.
Succession tales. Both Walmart and Target are promoting longtime executives to CEO, but here’s whyWalmart's appointment has been better received by Wall Street. —Phil Wahba
Culture change. For the first time ever, work-life balance has surpassed pay as an incentive for job seekers. —Emma Burleigh
Racing rhetoric. McLaren Racing CEO Zak Brown credits his “no-blame” workplace culture for lifting the team from dire financial straits. —Sasha Rogelberg