Cutting the Christmas Party a False Economy

Just as organisations need to retain and sell more to existing customers to grow, business success is highly dependent upon the retention and continuing motivation of existing employees. The  report on  RTE that 79% of  companies have cancelled office parties with 71% saying they are a waste of money is worrying and in my opinion a false economy. Whilst lavish christmas celebrations are not justified, organisations should consider alternatives to ensure staff satisfaction, motivation and loyalty are maintained. This being particularly important as the economy moves out of recession and the demand for talent grows. Estimates suggests that the cost of recruiting and training new staff could be as high as €15,000, before the additional cost from the loss in productivity for the period during which they have to familarise themselves with the job. Accordingly, developing, retaining and growing staff motivation makes financial sense. Companies may perhaps consider the following as alternatives to lavish christmas parties:

• A return to the traditional drinks and nibbles in the office. A few bottles of wine, cocktail sausages, CD player and a thank you from the Executive can go along way.
• Making a donation to a local charity on behalf of the staff. Ask your employees to nominate a local charity and send a small christmas donation to them on your employees behalf.
• Buy a round of drinks in the “local”. Just invite your team to join you for a drink in your local!
• Personally thank everyone for their contribution. Just saying thank you for a good job has a huge positive impact.