News

October 30, 2009

Fifth of firms cancel Christmas parties this year

A fifth of businesses have cancelled their staff Christmas party this year because of the economic climate, research by events management firm Concerto has revealed.

Concerto's survey also found that almost half of UK firms have yet to decide whether to hold a Christmas party this year.

However, the Forum for Private Business (FPB) has called on small firms to go ahead with their parties this year, as an important way of thanking staff for their efforts over the past 12 months.

"Staff Christmas parties are about recognition and appreciation of workers," said FPB chief executive, Phil Orford. "They are a valuable way of saying thank you to employees for their hard work during the turbulent time. In turn, good employee engagement delivers bottom line results.

"Christmas parties are one of those vital social rituals which we can't afford to do without, no matter how bleak the economic outlook is," he added. "They're a chance for people to let their hair down once a year and get to know colleagues who they wouldn't normally get the chance to socialise with."

According to Concerto Group chairman, Mike Kershaw, holding a work Christmas party is good for employee engagement and productivity.

"The Government's recent Engaging for Success report found that highly-engaged workforces were more than 50 per cent more productive than firms with a low engagement," he said. "So holding a party really makes commercial sense."