Christmas 2011 - Time to party?

As we struggle slowly out of the recession, the annual party is still being subjected to some scrutiny. Bookings at London's leading Christmas Party organiser The Ultimate Experience, were up by around 15% in 2010. However, even if celebrations may still feel incongruous in the current climate, party-cancelling will be about as popular as another economic nosedive.

"Don't be afraid to move away from the traditional Christmas party," advises Tim Stevens, from BPE. "Shared parties and in-office parties are more widespread as are smaller departmental functions which are more cost effective. They are a stress-free solution and you can also involve staff in all aspects of arranging the party, another cost effective exercise if they have useful contacts."

Regardless of the gift or the event, what employees really want is acknowledgement that their difficult year has been recognised and that their efforts and loyalty are being rewarded. Essentially, the team at the top needs to buy into Christmas. The trick is getting them to let go of the purse strings first.

Neglecting the needs of employees at Christmas has a devastating impact upon staff morale and the perception of the organisation. "To cut the budget to zero is even more dangerous than spreading the cost thinly," says Nigel Cooper, CEO of Motivcom. "That's why it's up to managers to convince the top team that if they spend on Christmas they'll get a return for their investment in terms of loyalty, motivation and discretionary effort, which is when staff go above and beyond what's expected of them.

You have to produce evidence of this by referring to previous programmes or case studies of how such investment impacts positively on a company. Show them how sales went up as a result, for example."

It's also a question of confidence. After a hard year employees also want to know that their efforts are helping create a better future. This infectious spirit won't just benefit organisations internally but will also ignite a greater confidence in the economy too.

"It's time to move on from the recession," explains Cooper, "and get back to doing business. By holding a Christmas celebration it gives employees the message that there is a brighter year ahead of them and if every business created this feeling then the economy would start moving forward faster. It's simplistic but it's true."

He continues: "Yes, businesses are right to keep a check on how they handle their Christmas budgets. Yet if they want 2011 to be brighter than 2010, giving employees a much-needed boost is where that starts."