News

December 11, 2009

Two-thirds of managers say Christmas party vital this year

Two-thirds of managers believe it is vital to hold a Christmas party this year to reward staff for their hard work during the recession, research from the Chartered Management Institute (CMI) has revealed.

However, the survey also found that 58 per cent of managers said that the party should not be expensive or they risk damaging their business's reputation.

"If a company had made redundancies or other cutbacks but then was spending lots of money on a lavish Christmas party, it would make them look bad to clients and to staff," said CMI spokeswoman, Jo Bowles. "If employers feel that an expensive party is going to be damaging to their business, they should consider having a lunch or something more low-key to reward staff."

The survey also found that 41 per cent of firms plan to hold a Christmas party, but will not make any financial contribution. HR consultant, Margaret Dale, said that the employees' reaction to having to pay for themselves would depend on their relationship with their employer.

"It is crucial to be honest and to keep staff informed," she said. "If they feel the organisation is struggling and can't afford to pay for a Christmas party, they should say so. If employees trust their employer, they will accept it and they will realise it is better to have a modest party or to pay for it themselves than for the employer to risk the future of the business."

Employment consultancy firm Efficiency Coach's founder, Heather Townsend, added that businesses should not place too much importance on the Christmas party.

"Employers should focus on making sure their people are recognised all year round for their contribution, rather than focusing on the Christmas party as the main event," she said. "It's the little things like saying please and thank you, and giving positive feedback. If you don't make people feel valued throughout the year, staff tend to see the party as a right and they get cynical if you don't have one.

"Anything a business does needs to be consistent with the messages they've been giving employees during the year," added Townsend. "For example, if they have laid people off and said trading conditions are really tough, the last thing they should do is then throw a massive Christmas party, because people will be suspicious about where all the money has suddenly come from. If they don't have the budget for a Christmas party, I'm sure they can find the budget for a nice bottle of wine."