A Holiday Party Can Cure What Ails Your Company


Treat employees to meats and cheeses and you will be rewarded  


(Published in the Chicago Holiday Party Planning Guide)(July 2019)

Life may be a wondrous gift, but it certainly has its challenges.

Our jobs are stressful, sharing a household is strenuous and our commutes can be full of strife.

The aggravations that plague us on a daily basis are typically magnified when the holidays arrive, thanks to an excess of bills and bothersome family members spending a bit too much time in our personal space.

Add to the mix an uncertain economy looming over our heads like the Sword of Damocles and both employers and employees might be tempted to forgo an office holiday party this year in favor of a cheap, relaxing night on the couch.

Think again.

A holiday celebration may not be an elixir for life’s complexities, but it can be a balm for many office-inspired ailments. A party is more than just an excuse for folks to down a cocktail or five, it can also offer numerous short- and long-term benefits for those who attend.

For example:

A holiday party can enhance relationships: Dave in sales and Max in accounting may have an abundance of common interests (perhaps they both bake a mean flan), but during office hours, the odds are against them sharing baking tips. At a party though, they can put their working worries on the backburner and make a personal connection. That kinship can subsequently do wonders for their job satisfaction.

Numerous studies show a rise in workers’ enthusiasm leads to an increase in productivity. One such study from the University of Warwick (yes, it’s located in England, but job satisfaction transcends borders) found satisfied workers are 12 percent more productive than the average employee, while unsatisfied workers are 10 percent less effective than the median, a colossal difference.

Boosting familiarity between employees leads to a cheerier, more comfortable workplace setting, which will almost certainly result in a happier office environment. People are more eager to show up to work if they know that cool guy from marketing may tell another amusing anecdote, just like he did at the party.

It humanizes the employer: Similar to Max and Dave’s bonding moment, if Barb the executive and John the underling chat at a holiday gathering, all the better. When a higher-up descends from rarified air and allows employees to see their true selves, resentments tend to be stripped away.

The Harvard Business Review reports bosses who project warmth are more effective than those who opt for a rigid leadership approach. Employees feel greater trust for an amiable supervisor and are more productive working for someone they, quite simply, don’t despise. One way to help cultivate such a scenario is to host a holiday gala, allowing supervisors the chance to mingle with the staff. Upper management will benefit from conversing with the labor, viewing them as flesh and blood people with feelings instead of cogs in a machine.

Similarly, the moment an employee learns his or her boss also loves to watch reruns of “Party of Five,” the icy façade that once separated them should crack, spawning a more congenial relationship. Humans being humanized is good for morale, which is excellent for a growing business.

It builds culture: All companies want to establish some form of culture. According to a recent Columbia University study, the probable job turnover at a business with a positive culture is 13.9 percent, while the turnover at more negative establishments is a hefty 48.4 percent.

If management doesn’t want to consistently watch half its workforce walk out the door, it makes sense to be as appealing as possible to the employees. One way to be likable while also establishing a brand is the aforementioned holiday celebration.

On one hand, a company can use the festive platform (preferably briefly … those hors d'oeuvres aren’t going to eat themselves) to spotlight its priorities and keep the attendees in tune with its plans. On the other, it can let the staff, and the world, know while its competitors may be stodgy killjoys, this company knows how to let its hair down and have a good time.

Along those lines, a party gives a business the chance to flex its creative muscles. If the head honchos want to bring a photo booth to the festivities, those narcissists in design will love the chance to show off their pearly whites. If they want to hire a clown that juggles knives while riding a unicycle … well, maybe they should think that one through a bit more. Whatever the case, employees will appreciate the extra effort put forth. As an added bonus, if an employer yearns to stake its claim as someone who thinks outside the box, hosting a holiday soiree in January (or even better, in July near Independence Day … you’re welcome for the tip) is a savvy way to get that message across.

Even if a company ignores my sage advice for an Independence Day-style bash, it still stands to reap benefits from a winter gathering. A December party ends the year right, sending employees into the holidays with a favorable opinion of management (don’t underestimate the power of recency bias), and a January celebration is an ideal way to start the New Year on a satisfying note.

It fosters a caring ideology: It goes without saying compassion is a positive trait, and while empathy and the business world don’t always go hand in hand, there is significant evidence kindness on the job serves many benefits. According to Forbes, a compassionate workplace can lead to better employee retention, decreased stress and improved health (I.E.: less sick days).

One of the best ways to display a benevolent working climate is to show employees they matter. When an employer cares enough about its workers to spend some hard-earned cash on a work-related function, the staff is more inclined to respond with gratitude and loyalty. Considering we live in an era where the internet connects the world and social media is king, positive PR can go a long way.

Employers who throw a whiz-bang of a party should see their Glassdoor cache skyrocket, which should lead to more applicants trying to join in on the fun.

It will make people happy: Really, isn’t that what life is about? I would say you can’t put a price on happiness but many studies (not to mention all the evidence I just presented) say otherwise. Happier employees lead to a more robust bottom line and parties make people smile, especially on management’s dime.

A career network named Beyond surveyed 3,600 job seekers and discovered 74 percent of respondents think a company party boosts employee morale. Simply put, whether it’s a liquor-fueled romp or a casual affair featuring cupcakes and candy bars, employees want to gossip with their peers off the clock.

Preferably with no juggling clowns around.