As cost-of-living pressures continue to shape employee expectations, holiday gift-giving in the workplace is becoming less about tradition and more about equity, flexibility and psychological safety.
For employers, the challenge is balancing recognition with restraint at a time when discretionary spending feels heavier for many employees.
At IKEA Canada, that balance starts with consistency and choice. Each year, the organization marks the holiday season with a gift for all workers, a long-standing tradition rooted in appreciation and inclusivity. This year, the company asked employees what would feel most meaningful, says Natasha Bagley, the company’s senior director of total rewards.
Read: How employers can support employee financial wellness during the holidays
Gift cards emerged as the top choice, giving employees the freedom to use the gift in a way that works best for them. For some, that may mean treating themselves, while for others, it may help with holiday shopping or everyday expenses.
“The feedback was clear — flexibility matters. . . . Our goal is to make the gift thoughtful and useful while keeping it inclusive for everyone.”
A formal, national program also plays a role in reinforcing fairness across IKEA’s workforce. According to Bagley, a centralized approach helps ensure transparency around budgets and gift values while delivering a consistent message across locations. At the same time, individual units receive a modest additional budget to add local touches. “This combination of a shared gift and a personalized add-on helps us strike a balance.”
Other organizations are taking a more informal approach, placing greater emphasis on shared experiences rather than gifts. At the Nuclear Waste Management Organization, holiday recognition this year focused on connection, says Alicia Flynn, human resources manager.
Read: How employers can support employee financial wellness during the holidays
The organization’s HR team held a holiday afternoon with appetizers, while smaller teams opted for lunches together. At the organizational level, the company’s social committee organized a holiday lunch with trivia and prizes.
“We do not participate in Secret Santa,” Flynn says. “The focus is on spending time together without putting pressure on people to spend money.”
That pressure is something employers need to be increasingly mindful of, says Jennifer Moss, a workplace culture expert.
Ambiguity around holiday gift-giving can unintentionally create stress, particularly in hierarchical environments, she adds. When expectations are unclear, employees may feel compelled to give gifts they can’t afford out of concern about how their decisions will be perceived.
“When expectations are unclear, people fill in the gaps with anxiety. Especially during times of financial strain, implied expectations can undermine psychological safety.”
Rather than enforcing rigid no-gift policies, Moss says organizations should focus on providing clear guidance through codes of conduct and cultural norms that remove the obligation. In many cases, discouraging individual gift-giving upward is the most equitable option.
“We don’t know people’s financial situations. For some, giving a gift is easy. For others, it’s a real burden.”
Read: How employers can support employees’ mental health during the holidays
She adds employers may want to rethink the emphasis placed on large, one-time holiday gestures altogether.
“It’s often the small, regular rituals that matter most. When recognition is built into everyday culture rather than concentrated around a single holiday moment, it reduces pressure and strengthens psychological safety year-round.”