Festive spirit at smaller firms
The majority of small firms are going ahead with Christmas parties this year, but the financial crisis is forcing big business to cut back on their annual festivities, according to the Chartered Institute of Personnel and Development (CIPD).
Research from the CIPD revealed 82% of businesses with fewer than 50 staff will have a Christmas lunch or party this year, compared with only 42% of companies with between 1,000 and 4,999 employees. CIPD reward adviser Charles Cotton said:
“Throwing a Christmas party can help boost morale if it is done properly. It sends out a message that the business cares about its employees and wants to recognise their efforts.”
“Smaller organisations have less funds and so aren’t able to give some of the perks that the bigger businesses can, such as company cars and pensions. Therefore, if you want to recognise the collective contribution for the last 12 months, a Christmas party is one way of accommodating this.” he added.
The survey found that manufacturing is the sector where the most businesses are being forced to make cutbacks this Christmas — only 67% of firms will have a Christmas party this year, compared with 77% in 2007.
“Businesses running on a tight budget this year should be wary of cancelling the Christmas party altogether, as employees will understand if it has to be a lower cost affair,” said Cotton.
“If you’re going to cut it you are using it as a way of communicating to employees the economic circumstances of the business, and you need to reward employees in some other way,”