The Overlooked Power of Nostalgia in Organizations

Photo by Thomas Kinto on Unsplash

If you are a regular Flourishing Friday reader, you probably know that the psychology of nostalgia is a major topic of my work. Though I have been researching and writing about nostalgia for more than two decades, in the past few years I’ve become especially fascinated by how people situate their own stories within larger cultural narratives through what’s called historical nostalgia. This week, I’m trying something a bit different. Through my research and consulting work, I’ve seen how companies can use nostalgia in ways that go well beyond traditional marketing campaigns. To explore this further, I’m co-authoring the newsletter with Jason Dressel, CEO of History Factory, an agency that helps Fortune 500 companies leverage their organizational heritage. I think you’ll find the intersection of our perspectives valuable, whether you have a leadership role or are looking for ways to strengthen an organization you’re part of. This article also appears in Jason’s newsletter “The History Factor.” Have a great weekend! — Clay

The holidays and nostalgia go together like chestnuts and an open fire. At this time of year, personal rituals and traditions bring us together, connecting us through shared memories and experiences. Brands have long tapped into this collective sentiment with nostalgia-based holiday campaigns, but what’s notable is how they do it. It’s not always the content itself that sparks nostalgia—sometimes it’s the tradition of seeing it. No one wants Budweiser to run the same Super Bowl ad twice, but the return of the Clydesdales every holiday season is a ritual dating back to the 1970s. The same goes for Corona’s “Feliz Navidad,” Hershey’s Kisses as holiday bells and Coca-Cola’s polar bears. These ads—often the exact same creative running year after year—are less about innovation and more about comfort. After all, there’s nothing inherently nostalgic about polar bears; it’s their predictability that resonates.

Today, nostalgia marketing isn’t just a seasonal strategy—data published in August 2025 indicated that 48% of U.S. adults were at least somewhat likely to purchase products that made them nostalgic for the past. And nostalgia isn’t just for marketers. If you asked a room full of business leaders how nostalgia could be used in their organizations, we’d bet the odds are 90% they would all give you a marketing answer—and that’s the problem. Leaders appreciate the power of nostalgia in outward-facing advertising campaigns but often fail to recognize its potential to help address internal challenges.

Employers face growing challenges when it comes to sustaining employee engagement, especially among younger workers. Gallup reports that engagement among U.S. employees has fallen to its lowest level in a decade, with the sharpest decline among Gen Z. The American Psychological Association reports that younger employees are more likely than older ones to feel stressed, lonely and undervalued. In one study, 40% of Gen Z workers said they view burnout as inevitable. Together, these findings point to a generation that is less engaged, less connected and more vulnerable to stress. To meet these challenges, companies can harness the power of nostalgia-driven storytelling using an underestimated asset that’s especially relevant to their younger employees: their organizational history.

Earlier this year, Bloomberg reported that “The Business of History Is Booming,” noting a 70% surge between 2013 and 2023 in books published about historical figures and events. That strong market for history is also evident in other media, such as in the explosion of historical or nostalgia-themed content in podcasts, film and television.

This appetite for history-driven storytelling is carrying over to corporate brands. Movies and shows like Netflix’s “The House of Guinness,” “The Playlist,” “Blackberry,” “Tetris” and “Ferrari” are just a few titles based on historical dramatizations of stories from real-life brands. Using history also improves performance on owned and paid media channels. According to the Ipsos Global Ad testing database, the use of history or heritage in advertising provides an 8% bump in brand attention in the UK, and Kantar shows that, globally, ads with nostalgic elements show a 15-point increase in enjoyability with a 9-point increase in emotional connection.

This broad interest in history also translates to the workplace. History Factory’s 2024 Brand Heritage Index, a national consumer survey of U.S. adults conducted by Certus Insights, found that 85% of employees believed knowing more about their employer’s history would improve productivity, culture and the work environment, while 87% said they would be more invested in their company’s success if they knew its history. History Factory’s 2025 Brand Heritage Index survey, also conducted by Certus Insights, found that nearly half of younger adults think companies should use history and heritage more often on social media.

What’s driving this appetite for history? In large part, it appears to be a response to social isolation, digital fatigue and the dizzying pace of technological change. In an era defined by speed, screens and fragmentation, history has reemerged as a stabilizing anchor, helping people feel grounded and connected. This is where nostalgia comes into play. It is the psychological force at the heart of this cultural trend.

Nostalgia is often perceived negatively as dwelling unproductively on the past, but this skepticism stems from a fundamental misunderstanding of how it functions. A large body of research shows that nostalgia is a vital psychological resource. Surveys show that people frequently feel sentimental about the past and see nostalgia as a source of comfort, guidance and inspiration. Simple nostalgic activities like reflecting on a cherished memory or listening to music from one’s youth have been found to boost mood, strengthen feelings of social connection, increase self-confidence, enhance perceptions of meaning in life, inspire an optimistic outlook and increase the motivation to pursue goals.

Nostalgia also has important implications for the workplace beyond these individual psychological benefits that serve organizations by improving employee well-being and motivation. It increases empathy and altruistic behavior. It also enhances open-mindedness, inspiration and creativity—qualities that support teamwork, problem-solving and innovation. Studies further show that organizational nostalgia—a sentimental longing for past events within or aspects of one’s organizational life—increases the sense of meaning people find in their jobs and reduces turnover intentions.

Nostalgia can be especially helpful during periods characterized by disruption. For example, when employees feel burned out and detached from their work’s purpose, reflecting on meaningful work-related experiences can remind them that their work has brought deep satisfaction in the past and can again. This recognition can motivate them to reengage in more fulfilling ways.

Building on this foundational scholarly analysis, research by the Archbridge Institute’s Human Flourishing Lab shows that people often feel nostalgia for eras that predate their own lives in what’s referred to as “historical nostalgia.” A nationally representative survey of more than 2,000 U.S. adults found that 68% feel nostalgic for times before their births; 69% percent are drawn to media, styles, hobbies, or traditions from those periods; and 73% believe that new technologies should incorporate ideas from the past. Majorities also say that historical nostalgia helps them when they feel stressed or overwhelmed by modern life (63%) or anxious about the future (62%).

People often underestimate the role of nostalgia in the lives of younger adults. However, research shows they experience it frequently. In fact, when it comes to historical nostalgia, younger generations (Gen Z and millennials) report higher levels than boomers and the Silent Generation. By activating history, organizations can tap into the benefits of corporate memory and culture even when people did not directly experience the events in question. For instance, research finds that when young adults read stories of older generations, they feel more nostalgic themselves and experience increased feelings of belongingness, meaning and deep connection.

Despite common misperceptions, nostalgia isn’t about dwelling in the past. Rather, it supports the psychological states and behaviors that help individuals and organizations thrive in a changing world—and it’s a powerful tool for today’s workplace. Heritage-based historical nostalgia roots employees in a larger story that links an organization’s past with its present, offering a way to deepen connection, renew purpose and create more engaged workplaces for the years ahead. So put on your fuzziest socks and savor that hot chocolate: There’s nothing wrong with getting cozy with the past as you get ready for the new year.