Thought Leadership Blog

The HRS Thought Leadership Blog delivers validated findings, visionary perspectives and op/ed commentaries related to HR, Leadership, Organizational Development and Employment Law. To enjoy the full volume of available articles, please enter topic keywords in the search box to explore our body of work. Articles are regularly presented by the HRS team and guest experts.

Employers & Employees Agree to be Rightfully Cautious of Holiday Expenditures

Employees continue to be skeptical of lavish employer holiday parties, and employers find opportunity in containing holiday costs.  With the economic damage of the past several years, cutting back and cautious spending is greatly appreciated by all.  Employees who have suffered economically do not wish to see their rewards sacrificed for a holiday blowout.

75% of employees tell us they’d rather see bonus or investment into their advancement/security.  80% of employers tell us they are holding to the same cost-wise practices with no more than modest increase over the past few years’ practices.  Some are even cutting back further after learning past years’ efforts were not as appreciated as hoped.

The days of the “boss” calling employees onto the carpet to “kiss the ring” are over, and employers of choice recognize that employees want holiday celebrations that actually provide reward and appreciation.  Mandatory participation can be a deterrent from perceived value.  Allowing employees to plan their own rewards is the most appreciated choice.  To facilitate good sense outcomes, guidelines and budgets need to be set for employee committees.  The employer needs final control to ensure risk management and organizational goal attainment.  Structured properly, employers earn great ROI and everyone prospers.

Lavish expenditures are often resented by employees who suffered pay cut or layoff.  A sensible demonstration of company pride, forward movement, optimism and team appreciation is, however, a wise investment.  Safety and liquor liabilities remain primary concerns.  Depending upon team demographics, popular substitutes to parties include bonus, gift certificate or “your choice” menu items. The latter two offer repeat value.  For many, cash disappears as it hits the pocket, creating only single impact of reward.  Certificates can have more lasting and/or multiple impacts of reward.  The reward comes not only in the receipt but also in the use.  If the use is a lasting experience, the employee enjoys a more lasting reward. 

One year ago this month we commented our findings as the expert source to The Business Journal.  The topic was so well received and the findings so valuable, that the article was quickly globally syndicated with a cover bullet.  The popularity of this topic has not wavered, so we have accordingly provided this annual update.

Jessica Ollenburg - Monday, December 06, 2010