Elf on a Shelf, the popular Christmas tradition of placing a toy elf around the house, has been a tradition since 2005. Created by the company called Enesco, the idea behind Elf on a Shelf was to encourage children to behave well during the holiday season by having an elf watch them. The elf was designed to resemble a mischievous elf with a pointy hat, long arms and legs, and large ears. It quickly became a popular tradition for families around the world.