According to CCT Venues, while target based rewards give recognition to individual employees/ teams, a Christmas party rewards the whole firm and helps staff to feel like they are part of a ‘family’.
Studies suggest reinforcing a “caring” culture will further engage employees, promote retention and increase customer relationships.
Team Morale
Giving employees something to look forward to at the end of the year can be a great morale booster.
Having something in common to look forward to can promote camaraderie amongst staff and will give them something in common to talk about, no matter what department they work in, their level of seniority or their personal interests.
Relationship Builder
The majority of people spend a third of their life at work.
A misconception is that because of time in the office, they have the build non-work “friendship”. Having “friends” at work promotes retention. Teams that work well together will be far more productive.
Engagement
As above, Christmas parties provide a different environment for employees to connect with one another. Employees that enjoy each other’s company will work well together, be more engaged with the company objectives and be more motivated to achieve goals and targets.
Disengaged workers have 37% higher absenteeism, make 60% more errors, and have a workforce that are 18% less productive, leaving them 16% less profitable.
Removes Barriers
A party is a great way to humanize everyone in the organization by bringing all levels of staff, including the executives together to share in the moment. This gives employees the opportunity to get to know who they work for on a personal level.
Provides Opportunity
A party is a way to “show” rather than “tell” staff what good employer you are. Organizations that have continued the seasonal tradition of the staff party are down. This is an opportunity to stand out from the crowd. Promotion online will showcase the organization not just to existing employees, but to future talent for recruitment and to customers who follow. According to various studies, 85% employees who feel valued are more likely to recommend their workplace to others.
Gifts & Bonuses
Something to keep in mind when considering the end of year bonus or holiday “gift” is the value of adding in benefits that keep on giving.
A health spending account (HSA) is a non-taxable “bonus” which allows employees to top-up or enhance existing benefits like pharmacy, health, vision, and dental. It is an effective way for employers to add flexibility and choice to a plan, while controlling costs.
A personal spending account (PSA) is taxable but adds enrichment to any benefit program by allowing employees to meet their personal wellness goals like shedding those holiday pounds, being able to treat themselves to a gym membership and more.
Tax Deductible
With all of the benefits highlighted, it’s important to note that a lot of the expenses incurred will be tax deductible. Always check with your accountant.
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Note: this was written without the aid of Artificial Intelligence (AI)
Disclaimer: Please note that the information provided, while authoritative, is not guaranteed for accuracy and legality. The site is read by a world-wide audience and employment, taxation, legal vary accordingly. Please seek legal, accounting and human resources counsel from qualified professionals to make certain your legal/accounting/compliance interpretation and decisions are correct for your location. This information is for guidance, ideas, and assistance.
