Only 40% of companies are having a Christmas party as cost-of-living crisis bites

Research from Xpert HR, which surveyed 174 organisations employing almost 210,000 people, showed 40% will hold a Christmas party, compared with 54.6% in 2018.

Smaller-scale events, such as a departmental lunch, are the choice for nearly one-fifth (17.8%) of respondent organisations, while plans for bonus payments and gifts also feature on the list of preferences.
 
Respondents said that the cost-of-living crisis was a key reason for a more scaled-back event this year, as employers felt employees would not appreciate a lavish event in the current climate. 

The responses also showed that the pandemic had forced a reboot of such events and feedback from many employees indicated a preference for smaller-scale events, and at a more convenient time – such as lunch or during the working day.

Two-thirds (65.5%) of respondent organisations set aside a budget to cover the various Christmas and end-of-year celebrations. XpertHR found that spending is kept to around £50 per person. 

Private-sector-services firms extend this to £70, while the employers with fewer employees also spend above the norm, at a median £60 per employee.

85.6% of respondents said they generally hosted celebrations with employees at this time of year, mostly on Christmas celebrations, but a significant minority (23.6%) billed these as an "end-of-year" celebration, to be more inclusive of other faiths.

Almost four in 10 respondents make provision for members of faiths other than Christianity to mark special religious festivals. 

Observing good practice in respect of religion and belief helps employers to support a more diverse and inclusive culture which will in turn benefit recruitment and talent retention, the study said, which noted is most likely to happen in the public sector. 

Noelle Murphy, Senior HR insights editor at XpertHR, said: “Given the current cost-of-living crisis and wider economic uncertainty, it’s no surprise that companies are reigning in their festive celebrations. 

"In the current climate, there is a definite sense that it is not appropriate to spend large amounts on these events, and that money could be better spent offering support to employees where possible.
 
“But the changes are not solely financially led. Employers want to mark the work that has been done by employees during the year and the festive season, but the pandemic forced organisations to look at other ways to run events and celebrate as groups and employees have enjoyed the change.  

"Employers are conscious that employees do not always want to attend events outside working hours and also there are those who perhaps don’t yet feel comfortable attending mass participation events.
 
“These events are for employees - the best thing that companies can do is listen to their views and preferences in planning any event or celebration."

A recent Just Eat for Business study said that 1 in 3 companies will not be giving staff an end-of-year bonus this year.

The study also found that 7% of businesses decided not to host a Christmas party of any kind this year, citing budget issues as one of the main reasons.