The holidays are a terrific and challenging time to be a leader. Terrific because it’s one of the best times of the year to build real connection as a team: holiday parties, secret Santa, decorating the office and sharing fruitcake (well, maybe not fruitcake). Challenging because customers, operations and deadlines don’t care that half your team is out and the other half has eggnog on the brain.

Challenge One: It’s a high-stress season.

Even the most capable teams feel the strain this time of year. People are juggling family plans, travel and gift lists on top of work deadlines. They’re running on less sleep, stressed about what present to buy their significant other, family or friends, recovering from wrestling with outdoor lights that still don’t work and trying to remember what day it is. Tension can run high, patience can run low and most feel pressure to get it all done before the year ends.

The Opportunity: Slow down enough to show people they matter. Stress shrinks perspective, but connection restores it. Send a quick message of appreciation, give someone the benefit of the doubt if something goes wrong or just take five minutes to ask how things are going. Research from Gallup shows that recognition and connection are the biggest drivers of engagement during high-stress periods. When people feel seen, they give their best even in the busiest seasons.

Challenge Two: It’s the end of the year.

Whose idea was it to put multiple holidays at the end of the calendar year? It’s a lot. Projects are wrapping up, deadlines are colliding and people are more likely to be out of the office.

The Opportunity: Rally the team and get clear on what truly matters. The end of the year is not the time to launch a new pilot or start something that needs constant attention. Focus on finishing well. Decide which projects move forward and which can wait. Communicate those priorities clearly so your team can focus their energy where it counts. Amid the sprint to wrap things up, take a moment to pause and appreciate what the group accomplished together.

Challenge Three: Employees would rather party than work.

It’s okay that your team would rather celebrate than work. It’s part of being human. The end of the year is when people naturally want to connect, celebrate and take a breath.

The Opportunity: Research shows that team members who live full lives perform better at work, with strong work-life balance linked to higher satisfaction and improved performance. Make space for connection while keeping the lights on. Encourage celebrations, join in and share a laugh, but be thoughtful about coverage and timing. Everyone can’t be out at once, and that’s part of leadership, too. Set expectations early, balance fairness with operational needs and then let your team enjoy the season. These small acts of clarity and flexibility build trust and belonging that last well past the holidays. When people like where they work and who they work with, performance takes care of itself.

Recognize That Moments Matter

The projects will get finished, the deadlines will pass and the year will reset soon enough. What your team will remember is how they felt working alongside you in the middle of it all. The laughter, the grace and the sense that what they do and who they are actually matter. Those are the moments that carry a team into the New Year ready to do their best work.