December is right around the corner and for many companies that means the annual office holiday party. While these events may seem focused on fun, there are risks associated with office parties that companies should be aware of.
Here’s a list of the advantages and disadvantages of office holiday parties, as well as some tips for making the festivities safer for all involved.
Party Pros: Advantages of Office Holiday Gatherings
- Holiday parties reinforce the company culture. Your company’s unique culture may be one of the primary reasons why employees stay in their jobs. The holiday party offers an opportunity to underscore why the organization is a great place to work in a fun and light-hearted way.
- Festivities can increase employee engagement. Recent research found that employee engagement is one of the top focus areas for HR professionals today. Employee engagement is strongly correlated with on-the-job performance. Holiday parties can create a sense of inclusion among workers and promote higher levels of engagement.
- Employees see the holiday party as a sign of the company’s health. A recent Harvard Business Review article suggested that holiday parties are often interpreted as an indicator of organizational stability and prosperity. That perception may be accurate. One survey found that 89% of companies planned holiday parties last year, due to the economic recovery. This was an increase from 82% in 2012 and only 68% in 2011.
Party Pitfalls: The Dark Side of the Office Festivities
- Employees don’t often mingle beyond their acquaintances. While some hope that office holiday parties will help employees meet new people in the company, in reality it rarely happens. Harvard Business Review found that most employees stick with the colleagues they know and diversity suffers.
- Some employees don’t realize that the office holiday party is still considered the workplace. It’s not uncommon for people to lower their guard (especially if alcohol is served) and engage in behavior that’s inappropriate for the workplace. Unfortunately, that can lead to sexual harassment allegations and other claims.
- Alcohol brings tremendous liabilities. While alcohol may make the office holiday party merry, it also has a dark side when people drink too much. If employees drink and drive, they risk injuring themselves and others, as well as exposing the company to unwanted liability. Alcohol also lowers people’s inhibitions, which can lead to undesirable behavior as noted in the bullet point above.
5 Tips for a Merrier Office Holiday Party
Every company is different and each one must decide what path to take with regard to holiday festivities, but here are five suggestions to reduce risk and keep employees happy.- Consider whether employees really want a party. In some cases, employees would prefer an afternoon off, especially during the busy holiday season when there always seems to be too much to do.
- Decide whether alcohol has a place at the holiday party. If you do elect to have a party, decide whether you will serve alcohol at all or instead offer interesting, non-alcoholic beverages.
- If you do serve alcohol, take a few precautions. The Society for Human Resource Management (SHRM) recommends hiring professional bartenders to serve alcohol and instructing them to stop serving individuals who seem intoxicated. Offering a cash bar or a limited number of drink tickets can minimize the amount of alcohol that partygoers consume. It is also advisable to offer wine and beer, while staying away from hard liquor and mixed drinks. Be sure that transportation is available for individuals who cannot drive safely.
- Check the company insurance policies. Be sure that existing insurance policies will cover any incidents that might arise at the holiday party.
- Gently remind employees about company policies before the party. Shortly before the big event, it can be helpful to gently remind employees that company policies related to harassment, discrimination, and the code of conduct all apply during company-sponsored events which include the holiday party.
By taking a few common sense actions, companies can reduce the liability associated with holiday parties and reap the long-term benefits associated with happier, more engaged employees.
Looking for more advice on surviving the HR headces of the holiday season? Join us on Thursday, December 3rd at 3:00 pm EST / Noon PST for an in-depth 30 minute discussion on how to ring in the holiday cheer (while avoiding legal woes). Seats are limited, so don’t wait -- Sign up today!