New findings show the holiday season amplifies financial stress, burnout, and isolation among employees—challenging organizational leaders to rethink how they approach year-end employee well-being.
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The holiday season is often treated as a natural break in the work year—a period when employees rest, recharge, and return with renewed energy. But new survey data from Modern Health suggests a different reality: for many workers, this season has become one of the most destabilizing periods for their mental health.
This shift carries important implications for how organizations think about year-end culture, workload planning, and support.
The survey of 1,000 full-time U.S. employees shows that 66% of employees feel pressure to overspend during the season, and that pressure intensifies for those with caregiving responsibilities—77% of the sandwich generation report the same pressure.
This isn’t simply about holiday budgeting. It signals a larger trend: financial stress is increasingly intertwined with workforce well-being, especially during moments of peak family and social expectations. Employers focused on year-round well-being strategies cannot ignore the concentrated impact of these seasonal financial demands.
Explore More: Rising Financial Stress Is Reshaping Workforce Well-Being →
The modern workplace has evolved, but employees’ ability to disconnect has not kept pace.
The data reveals:
Beyond an erosion of boundaries, this data reflects a broader issue of inadequate recovery cycles within the workforce. When employees cannot meaningfully disconnect, organizations enter the new year with hidden deficits in focus, energy, and morale.
This is especially relevant for HR and business leaders navigating retention challenges or planning ambitious priorities to start the new year.
In addition to financial and work pressures, the emotional demands of the season carry weight:
Taken together, these findings suggest that the holidays exacerbate existing stressors, particularly for employees with caregiving responsibilities or limited social support. It also underscores that loneliness and emotional overload remain significant, often invisible drivers of workforce strain.
The end of the year is not simply a cultural marker. For organizations, it can be a structural stress point that can be planned for by putting the right supports in place.
Based on the data, workplaces have an opportunity to:
“The holidays are meant to be restorative, but for many employees they’ve become a perfect storm of financial worry, work and family pressure, and emotional strain,” said Dr. Jessica Watrous, Chief Clinical Officer at Modern Health. “While this time of year brings joy for many, it can also bring real stress. Even small acts of flexibility and understanding from employers can help ensure everyone feels supported throughout the season.”
The assumption that the holidays function as an automatic reset button no longer holds for a significant portion of the workforce. The data points to a season often defined by financial pressure, caregiving strain, emotional expectations, and a persistent inability to disconnect from work.
“Employers can’t eliminate holiday stress,” Watrous added, “but they can support employees in navigating it by creating environments where people feel understood, supported, and able to prioritize their well-being during one of the most emotionally loaded times of the year.”
Organizations that understand this and thoughtfully provide support will enter the new year with a workforce better equipped to sustain performance over the long term.
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