In the current economic climate, many company directors and owners may well be questioning the value of staging a Christmas celebration for their staff with a party being the first place for the business to make savings. However, many companies have found that the value in entertaining staff far outweighs the cost in terms of loyalty, networking, motivation, team spirit, bonding and enjoy the side effects of higher productivity after the annual Christmas event. So if you're in the position of deciding whether to have a full company Christmas bash or not (or even to justify it to a manager or director), consider the following as part of the decision:
The benefit of a yearly event can be enhanced by having the MD or senior management address the staff during dinner. This could include some annual recognition awards, which are an ideal way to celebrate success from the past year.
Many venues are ideally suited for afternoon conference or presentation before the evening gathering, therefore increasing the business content of the event overall. The Christmas party element could then run in the evening with a meal and dance floor, or turn into an informal drinks and buffet with canap矇s.
While the recession may be a sobering experience for your business, it's important to keep in mind the better times and you should attempt to see this year's office gathering as a opportunity to relax, bond and network with colleagues.
The UK government allows a certain level of tax to be written off against Christmas parties, set at a limit per employee. It may be beneficial to consult with the company accountants to determine what this spend level is and if consider it as a tax benefit of holding an event.
Reducing costs
Organising and paying for a big Christmas party during a recession is one of the strongest motivators for cancelling all together. However, it doesn't necessarily have to blow the bank and below are some money saving measures that can reduce costs but still give staff the chance to let off steam and celebrate as a group:
The costs may seem high, assuming costs of around 瞿80 per guest and the average salary in a company is 瞿40,000, so this only represents 0.2% of the salary bill.
Limit the company Christmas party to employee's only, therefore removing partners from the cost element. This is standard practice at many companies and given these times of recession, employees are likely to understand.
Consider having a full or part pay bar or reducing the costs by taking a Monday or Tuesday, when venue prices are often lower due to lower demand.
Organise a party to deliver a great night without the unnecessary upgrades that may be available as extras to a package, e.g. champagne, live entertainment or pre-dinner canap矇s.
Having the party at the office itself, if space allows, and paying a professional to decorate the venue to fit the Christmas or chosen theme and hiring caterers can greatly reduce costs. Make sure to consider the extra cleaning that may be required with this option however.
If budgets are very tight, consider allowing staff to organise and pay for their own Christmas party to which the company can contribute a fixed budget towards food or drink. Offering the flexibility of a half day for employees the morning after the event also shows flexibility from the company, even if it can't cover all of the costs.
In the current marketplace, when there may have been recent redundancies and/or pay freezes, a very extravagant Christmas party may well be viewed as inappropriate. Remember though, as long as you have a suitably decorated Christmassy venue, good food and great music, you are assured a great night with minimal damage to the company finances.
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