To party or not to party; 7 reasons why a Christmas party is good for business.

’Tis the season to be jolly, and what better way to get into the Christmas spirit than to throw a work Christmas party? Not only does this show your employees that you value them. But it’s also the one event on the work calendar that everyone looks forward to.

Christina Papadamou, Founder of Together LDN, which specialises in employee engagement and performance, says: “The office Christmas party is a great way to keep your team upbeat and enthusiastic in the last month of the year — there will be no December slump! Getting everyone involved with the decision-making process in the lead-up to the party will also ensure that everyone gets a say in this yearly extravaganza and gets people talking to other employees they wouldn’t usually engage with ahead of the event itself.”

So, is an office Christmas party really that important for employee morale?

Christmas parties provide big returns for comparatively little investment. Such festivities are favourable for boosting employee engagement, especially when financial incentives mightn’t be an option. Recent statistics found that a happy employee is 10 times less likely to take time off sick compared to those who are stressed (or anxious).

You may be thinking that you don’t have enough team members to justify throwing a Christmas shindig. Perhaps you’re snowed with work in the run up to the end of year, or maybe it’s financial pressures that are preventing you from moving forward. But isn’t that even more of reason to get out of the office, or at least take a well earned breather?

Still not convinced? Check out our top 7 reasons why you should throw the Christmas party of all Christmas parties!

1) You might actually end up saving money

Believe it or not, there are actually tax benefits to throwing an office Christmas party. With businesses being able to spend up to £150 tax-free on each employee throughout the course of the year. In terms of bang for your buck, a carefully planned Christmas party may actually save you money. It doesn’t need to be OTT or expensive.

Ever heard of shared parties? This is where companies share a venue to split costs. There’s also the option to hire a smaller venue. And it’s not like you need a fancy caterer with so many cheaper (delicious) food options out there. You can cut costs even further with a team lunch instead of an evening do.

2) Find out what your employees really think

The end of the year is the perfect time to recap on what your company stands for and the direction it’s taking. Your employees are way more likely to have an honest and fruitful conversation with you when they are ‘out of office’. Making the Christmas party the ideal time to learn where and how you can improve the business to make it a better working environment for everyone.

3) A happy employee equals a motivated employee

Regardless of how much or little stress the year caused an individual, giving your employees the chance to let loose is one of the greatest motivators and incentives for them to work even harder next year. Speaking on the motivational value of events for businesses, Sam Booth, who leads Keele University events department said:

“It’s the one time of year that you get the chance to truly reward employees for their input and engage them with business objectives for the year ahead… No matter how big or small your Christmas budget, businesses should not underestimate the long-term value of engaging with employees by getting into the festive spirit.”

4) Who doesn’t love a little praise?

Recognising all of the hard work your staff and colleagues did over the past year is so important. The psychological benefits of saying thank you are huge. It’s amazing just how impactful these two little words can be on your employee’s morale and productivity.

5) Parties encourage people to mingle

We’re all guilty of talking to the same select few people at the office every day. Indirectly, this is another plus of throwing an office Christmas party. It encourages team bonding — as people will move outside of their usual cliques to interact with the rest of their colleagues. Meaning the quieter, less social people in the office will leave feeling happier and more integrated within the team. Closer colleagues means better communication and teamwork.

6) Keep spirits and morale high

We all need something to look forward to at the end of the year, no matter where we sit within the company. No one likes a party pooper — and this will only send a less than positive message to your employees. People want to work at a company where morale is high and they can have fun once in a while. Most offices see a 31% increase in efficiency when workers morale is high, according to Christmas Connections. So what better way to round off the year than by celebrating all of the successes the team has seen this year?

7) Company loyalty and staff retention

There’s nothing more memorable than an end of year Christmas party. All of the excitement and gossip about who did what. If you’re lucky, people will be talking about it for months, if not years. This is a good thing! It means that your employees feel more connected to you and your company, which means increased loyalty and staff retention.

Give the people what they want

Ever heard the expression happy wife, happy life? Well, the same can be said for your employees. I encourage you not to miss out on a chance to bring the whole team together to celebrate. Events such as this are priceless. In the words of Phil McCabe, senior policy adviser at the Forum of Private Business; “Choosing not to recognise staff at Christmas could have a negative effect on morale and therefore productivity”.

Happy holidays!