Why employee recognition should be your priority this holiday season

Making the business case: The end-of-year holiday period is more than a time for celebration; it’s a strategic window, writes Will Feutrill.

As end-of-year holidays approach, it’s natural for business leaders to reflect and plan, taking stock of revenue, targets, performance, and most importantly, their people. This time of year also brings a golden opportunity for businesses to strategically recognise and retain top talent.

In a year where economic pressures have persisted, and competition for talent is high, employee recognition isn’t just a “nice to have”. It is a proven lever that drives performance, reduces costly turnover, and strengthens culture when it matters most.

Recognition that works

Traditional end-of-year gestures, like a hamper, team lunch, or standardised gift, can feel more like a checkbox than a meaningful acknowledgement. While these efforts are well-intentioned, they often fail to connect at a personal level or reinforce the behaviours and contributions that drive business outcomes. Strategic recognition goes deeper. It focuses on embedding a culture of appreciation rather than treating recognition as a cost centre.

Yet research shows that only a third of organisations have a formal recognition strategy in place. That gap represents not just a cultural challenge but a financial risk.

Even small, meaningful gestures, especially when employees are given a choice in how they’re rewarded, can create lasting emotional impact. From digital gift cards to experiential rewards, flexible recognition solutions empower businesses to meet the diverse preferences of their teams, wherever they are.

Why timing matters more than ever

Implementing authentic, tailored gestures now will allow your business to close the year on a positive, celebratory note. The holiday period is not just the end of the calendar year; it’s an emotional pivot point. Employees are looking for signs that their hard work has been seen and valued, as they reflect on their achievements, feelings of the workplace and whether they see themselves continuing in the same role next year.

A well-timed, well-executed recognition program can influence that decision. It boosts morale, builds loyalty, and reduces the risk of post-holiday disengagement or resignations in the new year.

The hidden cost of getting it wrong

When recognition is too generic or inconsistently delivered, it misses the mark, and the cost of that can be significant.

Disengaged employees are estimated to cost businesses up to 18 per cent of their salary in lost productivity. Meanwhile, replacing a high-performing employee can cost up to twice their annual salary once you factor in recruitment, onboarding, and lost momentum. During a period when many businesses slow down or shift focus, losing key talent can derail Q1 performance.

Recognition that delivers ROI

So how do you ensure you’re recognising your employees well? Modern recognition is:

• Timely: Delivered soon after achievement or contribution.
• Personalised: Aligned with the individual’s values, preferences and impact.
• Integrated: Embedded into everyday workflows and team culture, not siloed to HR.
• Flexible: Scalable across locations, roles and reward preferences.

With digital tools and platforms, it’s easier than ever to recognise employees regularly and meaningfully, even for distributed teams. When done right, recognition boosts not just morale but also your employer brand, making hiring easier and more cost-effective in the new year.

Don’t miss the moment

The end-of-year holiday period is more than a time for celebration; it’s a strategic window. Done well, recognition now can increase employee goodwill, reduce the likelihood of costly turnover in January, and give your business a stronger start to the year ahead.

Will Feutrill is the regional vice president of AU Incentives at Blackhawk Network.