What Santa Gets Right About Workplace Culture

On paper, this particular workplace sounds uninviting: remote environment, subzero temperatures, one crushing annual deadline, and less than four hours of daily sunshine during peak season. Yet employees love working here so much that most haven’t even heard of the word “turnover.” 

So, what is Santa doing right? Considering how much time the elves spend smiling and singing — not to mention bringing joy to the world’s little girls and boys — it appears that Santa’s Workshop is acing it on employee engagement and workplace satisfaction. I mean, when was the last time your coworkers broke into song, exclaiming We work hard all day/But our work is play?

Santa seems to have struck just the right notes in creating a healthy workplace culture. To unpack what Santa’s Workshop is doing right, let’s take a closer look. 

1. The leadership is inspiring 

It’s the rare manager or CEO who walks into the workplace laughing, patting their belly, and staring down obstacles with a “Ho! Ho! Ho!” Let’s be clear: Santa isn’t a doormat. He knows who’s naughty or nice, and he’s willing to be firm when necessary. 

But he’s accessible, fair, and easy to talk to. He also embodies the mission of the organization — and everyone loves working for someone who’s known globally for their generosity and cheer. 

2. The workshop embraces diversity and inclusion 

Santa wants everyone to feel welcome and included. 

As the song has it, when it comes to his customers, he doesn’t care if kids are “rich or poor, he loves them just the same.” Ditto for employees. Just look at Rudolph or Buddy the Elf. 

Even though the reindeer used to laugh and call him names, Rudolph was placed at the head of the sleigh team once Santa saw him for who he was and for what he had to offer. 

After Buddy fell short of his quota, assembling only 85 (!) Etch A Sketches in one day, his manager consoled him, saying, “We all just have different talents.” His coworkers then chimed in, pointing out that Buddy was great at changing batteries in the smoke detector and had become a much-needed baritone in the elf choir.

Inclusion is such a core value at Santa’s Workshop, that it’s even built into the organization’s guiding principles, the Code of the Elves, which states: “There’s room for everyone on the nice list.” 

3. There are plenty of opportunities for growth and learning 

Because of changing customer demands, elves are constantly learning and upgrading their skills. Every elf already knows the basics like woodworking and Xbox assembly. But the same elf who made the 4-In-1 Ultimate Learning Bot last year has since upgraded their skills to make the DJ Bouncin’ Beats Interactive Musical Learning Toy this year. The technology is always changing.

That’s good news for Santa’s Workshop. According to the LinkedIn 2022 Workplace Learning Report, having opportunities to learn and grow is now the No. 1 factor that people (and elves!) say defines an exceptional work environment.

4. Internal mobility is encouraged and supported

While Santa generally offers lifetime employment, that doesn’t mean that elves are stuck making the same toys — or even being toymakers — all their lives. The Workshop offers a wide range of roles, from reindeer keeper to mechanic to customer service operative (to answer all those letters to Santa). Elves rotate through jobs as needed, on a seasonal basis. 

Even Buddy made a lateral move, becoming an engineer for Santa’s Kringle 3000 sleigh — and saving Christmas as a result. Again, Santa nailed this one: LinkedIn research shows that when companies invest in internal mobility programs, employees stay almost two times longer and are 3.5 times more likely to be engaged.

5. Workers feel a strong connection to the company’s purpose

Employees love to feel like their work serves a purpose bigger than themselves. And, seriously, could there be anything better than bringing joy to all the world’s children? 

This clearly defined mission and vision keeps the elves going throughout the year, even when they’re dealing with that crushing December deadline or facing storms that could threaten their ability to deliver. Research by McKinsey shows that people who find purpose in their work are more productive, healthier, more resilient, and more likely to stay at the company. 

It probably doesn’t hurt that Santa’s Workshop also receives positive feedback from happy customers throughout the year.

6. Work-life balance is a priority 

OK, the elves don’t get six weeks paid vacation, but they do get a chance to wind down and celebrate the holidays with their families before they gear up to fill next year’s orders. Throughout the year, they also build time into each workday for singing, dancing, and watching reindeer games. And with the on-site childcare, they’re never far from the elflings. 

Considering the retention rates at Santa’s Workshop, we can only assume that the workers there have struck the perfect balance between life and work. 

And on that note, we wish the same for you this coming year. Have a holly, jolly holiday!

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