In its annual survey on holiday parties, global outplacement and business coaching firm Challenger, Gray & Christmas Inc. found that 64 percent of companies are planning holiday parties this year, up slightly from 62 percent a year ago. About 4 percent of those holding parties this year are doing so after one or more years with no party due to the recession. With the economy still fragile, what is inspiring companies to take on the extra expense of a holiday party?
The most frequently cited motivation is to reward and thank employees for a successful year. Boosting morale, networking, and building camaraderie amongst co-workers were also forerunners. Ultimately, holiday parties are a strategic tool to increase employee engagement and boost your bottom line. Companies with a highly engaged workforce experience a 19.2% growth in operating income over a 12 month period and grows profits as much as 3x faster than their competitors. Having high levels of employee engagement also lowers attrition rates by 87%.
All of these statistics are strong incentives for companies to consider reinstating the annual holiday party; but if your HR department needs a bit more convincing, encourage them to think of the cost of disengagement. McLean & Company found that disengaged employees cost an organization approximately $3,400 for every $10,000 in annual salary totaling a $350 billion loss per year in the American economy.
Leland Management has chosen to invest in their employees and host an offsite, catered luncheon annually. Through team building events mid and end year, we enjoy low attrition rates and productive employees. We have seen tremendous growth this year and look forward to another successful year.