We don’t need to emphasise how challenging December can be, for both organisations and employees alike. For sectors like retail and hospitality, the holiday season is one of the busiest times of the year. Other businesses feel the pressure, too, whether it’s to complete projects before the break, fill orders, or tidy up loose-ends before Christmas.
Then there are special events, staff celebrations, and client functions, as well as all the things people are juggling in their personal lives as Xmas approaches.
It’s little wonder that by the time the final weeks of the year roll around, the whole business can feel like it’s struggling, or that half your team has already checked out.
So, just what are the biggest challenges to employees in the holiday season and what can employers and managers do to support them through this busy, and often stressful, time?
Biggest issues for employees around Xmas
1. Financial stress
In 2024, research by online job search and recruitment company, Monster, found almost half of employees said their productivity declined during the holiday season, and financial stress was the number one challenge.
We all know that Xmas is an expensive time. There are gifts to buy, and extra food, travel, and vacations to pay for. For employees with children, the school year ends and there are events and child care to factor in.
For many already dealing with cost of living pressures, it can be hard to stay focused on work, when you are worrying about how you will pay the bills.
2. Pressure on work-life balance
After financial stress, employees surveyed by Monster said time constraints for holiday preparations and family commitments were leading challenges to their productivity and well-being during the festive season.
Fitting everything into a busy schedule is a common factor for many people at any time of the year, and those pressures are exacerbated as we near the holidays. Work is often busier than usual and activities outside work - doing Xmas shopping, booking travel, organising family functions etc. - demand more of our attention, which can leave us feeling anxious, tense or moody.
3. Fatigue and burnout
Burnout is a very real issue in the modern workplace, and the increased workload and pressure that Xmas can bring only raises the risk. Your team may be working extra hours over the busy trading period, rushing to complete work before you shut down for a few weeks, or they may be stressed by all the competing demands on their time.
Xmas can be a difficult time for some people, especially if they've lost a loved one during the year or the festive season comes with extra emotional weight.
All of this can easily lead to fatigue and exhaustion, which will affect people’s (and the business’) ability to operate effectively.
Learn how to spot signs of burnout in your employees.
4. Maintaining engagement and morale
For managers, dealing with stressed or tired workers brings its own complexities. It’s hard enough if you have a couple of people whose spirits start to flag, it’s worse if that vibe cascades to a large part of the team. Not only will it affect performance, it’ll take more of your own time and energy to address it.
5. Increased client and customer demands
While more sales and service requests are great for the business, dealing with that increased demand often creates its own pressure on your people. Whether it’s a surge in enquiries, customers wanting last-minute orders filled before the holidays, or clients requiring special attention, it can get overwhelming.
Research also shows that staff, especially those in frontline retail or hospitality roles, often have to deal with stressed or frustrated customers and increased levels of hostility and abuse, which can damage wellbeing and morale.
6. Supply chain issues
It’s not only internal pressures that can test your employees’ mettle, pressures on the supply chain can delay deliveries of goods or materials the team needs to complete work. Your regular contractors could well be busier than usual and if something breaks down in the workplace or you need machinery serviced, you could face a long wait.
7. Understaffing
Many employees take time off over the holiday period, which can stretch remaining staff and increase stress levels for everyone.
To cover the gaps or or meet increased demand, you may have to hire and train extra staff or casual workers, which can affect service and productivity as they get up to speed.
8. Increased illness and injuries
Stress is proven to take a toll on employee performance, leading to more presenteeism (being at work but unwell or unfocused) and absenteeism, and affecting physical and emotional health.
Aside from the pressure at work, there are seasonal factors that can increase the risk of illness or injury, from hot summer weather to increased amounts of travel over the holidays.
Unfortunately, the festive season often sees higher levels of family violence and employees may be exposed to increased danger outside work.
How to help employees
Recognise the situation
The holiday season and the challenges that come with it happen every year, so we need to acknowledge that and plan for it.
Xmas can bring a mix of emotions for your people, so discuss ways to support them and work together on strategies to help lower stress levels and boost morale.
Offer financial help / planning advice
Money is a big source of stress over the holidays, and your team should feel comfortable raising these issues. The business may not be in a position to give out Xmas bonuses or offer financial assistance, but you may be able to offer resources to increase their financial literacy and wellbeing, e.g. hosting workshops or providing information that focuses on budgeting tips and managing holiday expenses.
Watch our webinar on practical strategies to support employees' financial health.
Prioritise health and safety
Employees surveyed in Monster’s research cited a lack of time for self-care as a major concern during the holiday season. As part of your legal duty of care as an employer, you need to identify risks to your people’s mental and physical wellbeing and try to eliminate them. Make this a part of your planning before the festive season rolls around.
If you have an Employee Assistance Program, make sure all your employees are aware of it and how to access the support it offers.
Remember, that not everyone observes Xmas or celebrates it in the same way, so every member of staff should feel safe to choose how much they participate in festivities - it shouldn’t be compulsory.
Manage workloads and expectations
A big part of your planning for the holiday season should focus on ensuring workloads are manageable and realistic, so your team isn’t exhausted before you reach Xmas.
Work closely with your employees to identify what has to be done before the holidays and what could wait. Break down big projects into smaller tasks.
Be sure to check in regularly to understand how they’re doing and to find solutions to challenges they’re having. Do deadlines need to change? Is it possible to get extra help?
Your customers should also be in the loop if you expect service levels to change during the holidays.
Offer flexibility (if possible)
Flexible work arrangements can help alleviate some of the Xmas pressure. You might be able to offer additional time off, more work from home options, or to rearrange start or finish times so people can take care of the things they need to do outside work.
Giving employees more control, autonomy, and flexibility in how they get their work done reduces stress, promotes productivity, and builds loyalty
Recognise everyone’s efforts
Xmas is the perfect time to recognise your employees’ hard work and dedication over the year. You might be able to offer a year-end bonus or hold a team celebration, or it might be as simple as a personal, authentic message to each employee. Taking the time to acknowledge everyone’s contributions makes employees feel valued, which lifts spirits and boosts loyalty.
Be a role model
It can be hard as a leader to prioritise your own wellbeing when workloads are high and the pressure is on, but it’s important not only for your own health, but also for your staff’s.
Set healthy work-life boundaries with regular breaks and reasonable working hours. Book and use your annual leave, if you can. Employees may be reluctant to take time off or switch off after hours, so if you set that example, they will feel empowered to do the same.
