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26 November 2008

We're all Scrooged: What to do if Christmas parties are too pricey

If company cash isn't being flashed, charity fundraisers and in-house parties can spread festive cheer.

by Annie Waite, Global Editor, the Internal Comms Hub.

"We've just sent out an email to all managers and employees saying that due to company performance and economic outlook, we will not be sponsoring (read "paying for") any staff Christmas parties this year."

Sound familiar? It's a posting from Melcrum's Communicators' Network listserv – an email-based discussion forum for communicators around the world. The member continues:

"A number of managers have come back to us and said they would still like to do something 'celebratory' as a thanks for the hard work but can't afford to pay for an event. Any ideas on what we could suggest? I am open to anything at this stage, including people "bringing a plate!"

How to celebrate on a budget
Unsurprisingly, many respondents replied acknowledging similar budget restrictions at their organizations, and offered their suggestions for how to celebrate on a budget (see sidebox, below right).

"Christmas parties are awful"
In part 1 of our focus on Christmas cut-backs, we look at trends in Christmas celebrations in the workplace this year.

The Hub spoke with Clare Moore (pictured, left), communications manager at Walters Kluwer (Croner Consulting), which last year commissioned a survey of 1,209 British workers, in which 43% of respondents said that work Christmas parties are okay but they'd rather be somewhere else.

One fifth of workers (20%) even said that the parties are awful and they’d do anything to avoid them and if they do go they can’t wait to leave.

Cash alternatives
Moore says that this year she's seen a rise in the amount of companies offering a small cash alternative to the Christmas party (but not part of a Christmas bonus), for employees to spend as they wish.
Alternative ways to celebrate the holidays
Suggestions from members of Melcrum's Communicators' Network listserv:
• What we used to get into the Christmas spirit was get everyone to bring something in to have a big buffet. Each team would volunteer to do one thing (pasta, cheese board, crisps, cakes, etc) and they were all laid out for a buffet on the day. Everyone then got an extended lunch to sit and chat (and eat!). Then there'd generally be an announcement that we could go home a few hours early. Minimal outlay, but it still got everyone in the festive spirit, and getting to go home early meant people still felt appreciated and like they were getting a treat.
• Run a "Secret Santa" – where everyone has a set and very low budget to buy a gift – but they don't know who for. All the gifts get put into a bag and distributed randomly.
• Perhaps managers could use a small discretionary amount from their own departmental budgets to buy something good to be raffled (for free) for their teams – maybe dinner for two or similar.
• Create a few fun (or even to count towards a performance review) different peer-nominated company "awards''.
• If you've got a conference room and an LCD (laptop) projector, why not run a Christmas cinema party? Hire or download a generically suitable film, blow a miniscule budget on popcorn and let the managers or their teams decide on what they want to bring or add.
• Host a pot-luck luncheon (bring a plate) to bring employees together either as a large group or by individual departments with everyone contributing to the event so there's not a large outlay of cash by employees.
• Another opportunity might be planning a team-building activity during the holiday season that includes a volunteer/community outreach program (adopting a local shelter, center or family). Bringing holiday cheer to those less fortunate takes emphasis away from what the employees are missing out on through a company-sponsored holiday party, brings a feeling of goodwill to those involved and the company is seen as a good neighbor by the community where your employees live and work.
• Another perspective in the Christmas spirit would be to gather your staff to make Christmas baskets for people in need. I don't know if it's a common practice in other regions of the world but in Canada, it's very highly regarded. You can contact local charities and ask if they have such needs for the period around the holidays. If so, everyone in the company can bring some food items (based on a list the charities can provide) to the office in advance of that day and you organize a work chain to put together food baskets and decorate them. The underlying message can simply be that some are less fortunate than us, let's make a difference in their lives.

“Last year when we commissioned the survey the economic climate was very different to that of today. We decided to ask employees what they thought about the annual Christmas party because feedback from our telephone helpline advisors suggested that it was becoming out-of-favor," says Moore.

The survey revealed that was indeed the case – employees had had enough of the traditional corporate party.

“This year, many employers simply can't afford the Christmas party. Instead, they're offering smaller, more informal proceedings, either at a local restaurant or onsite with a few nibbles and drinks," Moore says.

Others are giving a set amount of cash, say £20, to have a team Christmas lunch or night out. "The latter option, as last year’s research reveals, is proving a popular option and one we'd recommend to meet the needs of employees and the budget of a business,” Moore continues.

Time spent on events planning
One suggestion given in reponse to the Communicators' Network query was "A popular event in the run up to Christmas is the Christmas Market. You could host a family Christmas market at your offices/ in the car park and all you have to do is invite lots of local traders, small businesses to come to your event with their Christmas produce and invite all your employees to come along with their families."

Such a suggestion, although likely an engagement booster for many employees, takes a lot of organization and planning. The question is, who should be responsible for putting these events together?

Many comms functions currently organize the staff seasonal social event, but is it actually a worthwhile use of their time, or would it be better placed as the responsibility of a voluntary committee of employees?

Moore says “Organizing a Christmas party in little companies let alone larger, multi-site organizations can be a complete nightmare and one, in my opinion that should be kept to the realms of a social committee or volunteers.

From experience, trying to come up with a solution that suits all is like searching for the holy grail."

It's far better, says Moore, to have a group of employees who love organizing social functions, rather than communicators, who are probably at this point in time trying to keep up morale, deal with difficult situations such as redundancies and continue to promote the company as successful and a great place to work.

Are social events strategic?
Teresa Sande (pictured, right), director of internal communications at Micron Technology in her Hub member profile agrees. "Don't do the holiday party," she says.

"The strategic planning teams are never asked to be the social directors – that’s because their role is viewed as very strategic and indispensable."

Communicators need to get to that same point, Sande believes, where they aren’t used in that manner because what they deliver to the company from a communication perspective is so much more valuable than social event planning.

"Holiday parties do have a strategic purpose. They're a form of recognition for employees, a way to connect people and families, a way to drive engagement. However, as communication professionals, don’t book the restaurant, pick the menu, decide on the color of the confetti or book the entertainment!" says Sande.

A seasonal morale booster
It's clear that some sort of seasonal celebration helps boost morale, so can be a feasible responsibility of the communication function in many organizations.

Charles Cotton, the Chartered Institute of Personnel and Development's (CIPD) reward advisor, believes the workplace can benefit from employee celebrations. "These sorts of celebrations can be more than just a goodwill gesture," he said, commenting on research released last year.

"Parties and gifts provide the opportunity to boost team morale and thank staff for all their hard work during the year. A little can go a long way in creating a better workplace atmosphere."

Cotton continues: “Employers need to think about why they're providing a Christmas party in the first place. If it's to recognize the collective contribution of their employees, then what are the alternatives and are they more effective?

If holding a Christmas party is the most effective way of achieving this, then employers should be wary about scrapping them in response to the economic downturn because the long-term impact could be damaging to employee engagement and organizational performance. As reward becomes ever more individual, the Christmas party is one way of reminding staff that they're part of a common endeavor,” Cotton says.

Party or job?
According to Moore, although some people might be in uproar and believe that employers should hold a Christmas party, the evidence from the research so far is that many employees don’t actually want an organized Christmas event anymore.

“I think it’s important for employers to listen to their staff and be honest with them. If they have a limited budget this year because of the credit crunch, ask them what they want, perhaps set up a group of employee and management reps to be responsible for this," Moore suggests.

And, if there is no budget at all, then say so.

"I’m sure people would rather forego their Christmas party instead of holding one and losing their job at a later stage,” says Moore.

Christmas spirit still prevails in British organizations
CIPD earlier this month released a summary of findings from its Annual Reward Management Survey 2008, which highlights the importance of rewarding employees during difficult times.

It reveals that 60% of organizations in the UK this year will still provide Christmas parties or lunches to their employees, down from 69% in 2007 and 64% in 2006.

See table 1, below for a breakdown for industry sectors of the organizations providing Christmas parties.

Table 1. Is your organization

Public sector organizations: Scrooges?
The full findings of the survey, which will be released in February 2009, show that private services sector companies are still the keenest to embrace the Christmas festivities with the vast majority (77%) still likely to provide a Christmas party or lunch this year (a small shift from 84% in 2007).

However, the voluntary and the public sectors fare less well. While the voluntary sector is more likely to reward staff with a Christmas party (51% compared with 24% in the public sector), the number of the organizations in this sector throwing Christmas parties has decreased by 12% this year.

Doing "the right thing"
Similar to previous years, public sector organizations are the most reticent to offer this Christmas perk, with only 24% likely to provide a Christmas party or lunch in 2008 (compared with 26% in 2007).

And within the private sector, the manufacturing and production industry has also shown a significant drop in Christmas party’s offerings this year, with 67% of the organizations providing this type of reward compared with 77% in 2007.   

About these results, Moore says: “I think that at the moment there is great pressure on public sector organizations to be seen to be doing the right thing." I should imagine that using public money to host a Christmas party is viewed as quite frivolous and is probably the reason why they're less likely to hold one this year,” she suggests.

Small is good
When it comes to Christmas parties, it seems that the size of an organization does matter, with smaller organizations most likely to embrace Christmas festivities.

The survey shows that more than 82% of firms employing up to 49 employees will provide a Christmas party or lunch this year, compared to only 37% of organizations with 5,000 people and more.   

The survey also highlights the differences between organization sizes (see sidebox, right).  

• • 82% of organizations with up to 49 staff will offer a Christmas party or lunch;
  • 74% of organizations employing between 50 and 249 employees provide a Christmas party or lunch;
  • nearly 60% of organizations employing between 250 and 999 employees offer a Christmas party or lunch;
  • nearly 42% of organizations with 1,000-4,999 employees provide a Christmas party;
  • 37% of organizations employing 5,000 people and more are likely to throw a Christmas party or lunch this year.  

Situation in the US
Workforce Management's Michelle V. Rafter reported recently about the Christmas party situation in the US. It reports that outplacement consultant Challenger, Gray & Christmas Inc's survey of 100 companies found that 23% of companies elected not to host a holiday party this year, compared with only 10% in 2007.

Executive search firm Battalia Winston Amrop found in its survey of 108 firms that 19% of companies won't run a party this year, the highest percentage in the poll’s 20-year history. The firm also released some other interesting findings from this year’s survey:

• Not all parties are created equal, and this year the Financial Services and Manufacturing industries will see significant cut backs on holiday festivities due to the tough economy. Both industries noted that 42% of companies will either host more modest parties, or cancel them altogether. This compares with 85% of companies in the healthcare/pharmaceutical industry who say that the economy will have no impact on their holiday party plans.
• Of the companies that typically give year-end bonuses, 62% say that they will be the same or smaller than last year. Only 6% expect year-end bonuses to go up, and a few companies are getting rid of them altogether.
• Despite the difficult economy, 74% of companies plan to participate in charity efforts this holiday season (donating money, food, clothing, gifts, volunteering, etc.). Even many of the companies that have cancelled their own parties and expect to see a drop in year-end bonuses still have scraped the resources together to make a difference in their communities and help those less fortunate.

  The desire to relax and have fun – especially in these challenging economic times – can be a highly anticipated antidote to workplace stress.

• Of those conducting holiday celebrations, 56% will be evening affairs, compared to 44% taking place at a luncheon. More than three-quarters (78%) are conducting their celebrations off-site, compared to 22% celebrating at the office.

Global trends
A Towers Perrin survey of HR executives and staff taken in October in more than 450 companies, found that companies are looking to contain costs by lowering spending on discretionary items such as perquisites, travel and entertainment, and training budgets.

Almost three-quarters say they plan to curb travel and entertainment spending – including, presumably, the holiday party.

“I think that the trends emerging from the US mirror those in the UK," advises Moore. "Globally, all businesses are facing economic difficulties and as such will be reviewing their budgets to see where they can save money. Unfortunately, it usually ends up being things such as parties and charitable giving that are the first to go.”

Advice on party behavior
Communicators might also be responsible for advising employees about the dangers of the Christmas party – and where inappropriate behavior might lead.

Carol Kinsey Goman, an executive coach, author and keynote speaker warned in her "Body Language Tips for the Office Party" enewsletter this week that "a holiday get-together can also quickly turn into a career-limiting event, unless you understand the do's and don'ts of appropriate behavior."

The desire to relax and have fun – especially in these challenging economic times – can be a highly anticipated, positive antidote to workplace stress. "But when you combine the need to let your hair down with too many glasses of wine or cocktails, it's a mix that can cause trouble," Kinsey Goman says.

Check back on the Hub next week for part 2 of our Christmas focus, which will look at how the recession's affecting end-of-year bonuses and seasonal perks.

Have your say
Charles Cotton makes a valid point when he says that employers need to think about why they're providing a Christmas party in the first place – is this a topic you've discussed at your organization? Do employees at your firm have any input into how to celebrate Christmas in the workplace?

What alternative, and thrifty, events will you be holding at your organization instead of the all-singing-all-dancing Christmas party of yesteryear?

Recommended resources:

It's official: employees don't like to party!

Christmas spirit sparkles in small firms

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