‘The holidays should strengthen connections, not create pressure or financial strain’
Despite best intentions, human resources professionals may be interested to learn that holiday gift-giving traditions in Canadian workplaces may be increasing mental troubles and harming workplace connections, according to a recent report.
Nearly all Canadian hiring managers (91 per cent) say their company hosts celebrations, most often for holidays (51 per cent), birthdays (49 per cent), retirements (46 per cent) and work anniversaries (43 per cent), reports Express Employment Professionals.
And almost half (47 per cent) report that employees regularly exchange gifts.
Corporate gifting can be a key tool for employee engagement, particularly in the wake of major workplace shifts, according to one expert.
Gift-giving expectations, pressure
Gift-giving expectations are widespread, according to two Express–Harris Poll surveys: one of 500 Canadian hiring decision-makers and one of 503 Canadian adults, both conducted in June.
More than half of hiring managers say employees feel compelled to give gifts to direct reports (47 per cent), as well as to peers, managers, supervisors and senior leadership (46 per cent). Almost one-third (31 per cent) say their employees feel a lot of, or extreme, pressure to participate.
Job seekers report similar experiences. While 85 per cent say their company hosts celebrations and 33 per cent say gift exchanges are common, more than half feel pressured to give gifts to co-workers, particularly for birthdays, work anniversaries or holidays. At the same time, 60 per cent say they are comfortable giving gifts to peers for personal occasions, suggesting the pressure is more closely linked to workplace norms and hierarchies than to personal relationships.
The survey also points to notable generational differences. Gift exchanges are more commonly reported by younger workers: 40 per cent of Gen Z respondents and 38 per cent of millennials say such exchanges are common where they work, compared with 23 per cent of Gen X and 13 per cent of boomers.
And Gen Z and millennials are also more likely than Gen X to say they feel extreme pressure to give gifts to managers, peers, direct reports and senior leadership:
- To managers: 37 per cent and 23 per cent vs. 18 per cent
- To peers: 28 per cent and 28 per cent vs. 11 per cent
- To direct reports: 26 per cent and 26 per cent vs. 14 per cent
- To senior leadership: 28 per cent and 23 per cent vs. 16 per cent
Downsides to holiday gifts
And this pressure has financial and cultural implications in the workplace. Most job seekers (73 per cent) say the pressure to give gifts disproportionately affects employees who earn less, while 67 per cent believe workplace exchanges open the door to favouritism.
Another 64 per cent agree these exchanges “foster a sense of obligation that can negatively impact team dynamics.” Nearly half (47 per cent) feel pressured to spend a specific amount on gifts.
“Gift giving is never about the item itself. It’s about the relationship,” says Bob Funk Jr., CEO, president and chairman of Express Employment International. “In any workplace, the real value comes from the exchange of support, time and shared achievements. When expectations around price or participation creep in, it shifts the focus away from what matters. The holidays should strengthen connections, not create pressure or financial strain. The real value is in the relationship.”
With a simple gift this holiday season, employers can boost staff’s job satisfaction far longer than just December, according to a previous report.
How can employers maximize gift-giving?
For employers, gifting in the workplace is not just about offering presents during holiday seasons or special events, according to a LinkedIn post by Srikanth R, software development engineer at Six30Labs.
“It represents a symbolic act of recognition, appreciation, and respect. When done thoughtfully, gifting can break down barriers between colleagues, foster collaboration, and create a culture of gratitude. Employees who feel valued are more likely to perform at higher levels and remain committed to their employers.
“At its core, gifting serves as a form of communication—one that goes beyond words. It expresses appreciation, acknowledges efforts, and encourages a sense of belonging. Recognizing an individual’s contributions through a gift can contribute to a culture of positivity and inclusivity.”
Here’s how employers can get gift-giving right, according to Indeed:
- Know employees’ interests – Managers should ask about employees’ hobbies, preferred types of gifts and favourite movies or TV shows to better tailor gifts. This can be done through emails, conversations or short surveys and helps demonstrate genuine interest while strengthening professional relationships.
- Be clear on why you’re giving the gift – Before choosing an item, consider the purpose behind the gift. Common reasons include recognising individual or team performance, marking special occasions such as holidays or birthdays, or celebrating broader company achievements. The motivation should guide the type and scale of the gift.
- Consider tax and financial implications – Employers should research the tax treatment of different kinds of gifts and, if they want to avoid creating taxable income, choose items with a relatively low fair market value. It can also help to be mindful of employees’ financial situations when deciding whether a reward that counts as income is appropriate for them.
When it comes to gift-giving, the right recognition, in the right amount, makes all the difference with employees, according to a previous report.
