Employees are the face of your brand, and their demeanor and customer service can make or break your reputation. “If somebody goes to a business and they get bad service, they often say: ‘I’ll never go back there,’” said small business consultant Kim Shepherd, who also is chair of SCORE’s National Black American Committee. “That person, of course, doesn’t represent the entire company, but to the customer with the bad experience, boom, that’s it.”

Engagement and motivation are important year-round, but the holiday season’s long hours and irritable customers make it harder for employees to stay upbeat. This is also the time when you need your employees the most. According to a Constant Contact survey of more than 1,600 small businesses in Australia, Canada, the U.K. and the U.S., the percentage of small businesses that attribute at least 50% of their annual sales to the holiday period has nearly doubled since 2023.

“You want your employees to be happy representing your product or business. They are some of your biggest brand ambassadors,” Shepherd said. “The last thing you want is a customer to encounter an unhappy employee who feels overworked and underappreciated.”

Shepherd offered tips for maintaining employee morale during the holidays.

Be Appreciative

There may be no more valuable words in the English language than “thank you.” “If you’ve ever been in a situation where somebody told you, ‘Thank you, I appreciate you,’ it can instantly change your whole demeanor and how you feel about your day,” said Shepherd. That’s why expressing verbal or written appreciation is so important. A 2019 study by women’s leadership association GoLead found that 60% of workers are more motivated by recognition than money. Especially during hectic times, taking a moment to sincerely thank your employees for their hard work can make a world of difference. “This is a stressful time,” Shepherd added. “A simple thank-you makes them feel like their work is truly valued.”

Offer Treats and Incentives

Small gestures of appreciation can go a long way. Free lunches in the break room, small gift cards and other perks boost morale. “If you’re asking your team to go above and beyond, find ways to show your appreciation,” Shepherd advised. “Even small incentives can make a big difference when people are working hard.”

Celebrate Their Wins

Acknowledge all employee accomplishments, whether small like handling increased customer traffic smoothly or big like successfully managing a store’s holiday event. “Everyone wants to feel like they’re doing a good job and that their hard work has been seen,” said Shepherd. The recognition doesn’t have to be grand. “Maybe, in front of a customer, say: ‘This salesperson has been an all-star today, getting people through the lines,” said Shepherd. Public praise is key. “It adds an extra layer of appreciation when you praise in front of others.” You also can set up opportunities for customers to show their gratitude. “Maybe you can create a Wall of Recognition where people can post shoutouts to each other,” Shepherd suggested.

Check In with Your Employees

Some problems on the floor during the holiday rush are the result of poor communication between employees and management. “You need to check in, gauge morale, and address any issues before they escalate,” said Shepherd. One way, she suggested, is by having employees fill out daily questions like what were your successes, what were your challenges, what other resources do you need, what’s working well and what challenges do you see? “You need to know what’s going on on the floor, and you want to head off any challenges as soon as possible,” Shepherd explained. Maybe there aren’t enough Christmas-themed ornaments in stock, for instance, or perhaps there’s a glitch with the checkout process and additional training could prevent future issues. “If you don’t have that information, problems and friction are going to escalate later,” she said. Employees have a unique perspective on what’s happening, “but you wouldn’t get that insight if you never asked,” she said.

Engage Your Employees in Solutions

Once you identify the pain points this holiday season, involve your employees in coming up with solutions. “This empowers your employees,” said Shepherd. “It makes them feel important and shows you value their input.” Tapping into their firsthand experiences not only shows appreciation for their expertise but also fosters a collaborative environment that can produce better solutions for everyone. Whether it’s brainstorming ways to manage customer flow or streamlining a backroom process, their ideas can bring real, actionable change. “Think about a forest fire,” Shepherd said. “You need two perspectives to tackle it effectively: the view from the ground, where you’re directly facing the flames, and the view from a helicopter, which lets you see where the smoke is coming from and how the fire is spreading.” Combining your perspective as a leader and theirs as frontline employees is a powerful approach to overcoming challenges, especially during a busy holiday season when everyone is needed.

Make Them Feel Invested

If you have a small, skilled staff and prefer not to bring in temporary holiday help, ensure your team feels motivated and appreciated. One way is to frame extended hours positively. “Remind them: ‘We didn’t scale or bring in more people because we want to put more money in your pocket,’” she offered.

You also can emphasize a successful holiday season’s long-term benefits for the business, and thus the employees. Let your team know that attracting more loyal customers now could mean greater job security and future opportunities for everyone. When employees see how they directly benefit, they’re more likely to feel invested in the business’ success.