Almost half (48%) of small and medium-sized enterprises (SMEs) are not planning a Christmas party this year.
The research, commissioned by communications firm Pitney Bowes and carried out by YourSayPays, surveyed 500 small organisations across the UK.
Of the 52% of organisations that are hosting a Christmas party for staff, 91% intend to spend the same or less than last year. Despite this, 63% recognise that cutting back or cancelling Christmas parties damages staff motivation.
Of those that are hosting a Christmas bash, the average spend per head will be £43.80.
Phil McCabe, senior policy adviser at the Forum of Private Business, said: “Controlling costs is always important, but staff Christmas parties are a valuable way of showing recognition and appreciation of your employees.
“In turn, good employee engagement delivers bottom-line results. Choosing not to recognise staff at Christmas could have a negative effect on morale and therefore productivity so organisations need to introduce other ways of motivating staff.”
Phil Hutchison, tactical marketing director at Pitney Bowes, added: “In place of parties, organisations can try other ways of showing their appreciation, such as more flexible working, relaxed dress codes or setting time aside for activities such as a festive quiz.”
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