Christmas is, first and foremost, a religious festival. However, both socially and economically, if Christmas didn’t already exist it would be a fantastic invention. For a Victorian factory owner producing textiles for the masses, Christmas would have made a huge difference. There would’ve been increased demand for his products as consumers bought or made presents for their families. His tired workforce would have had the opportunity to get some rest on the bank holidays and build up their energy stores by overeating. The times spent with family and friends would erase memories of the hard slog in the workhouses. Christmas would have been the perfect antidote to the effects of cold, dark winter nights and a perfect tonic for economies in hibernation.
Admittedly, it’s almost impossible to imagine a world without Christmas. That’s why it’s incredible to believe that, in workplaces up and down the country, it’s like The Grinch has stolen Christmas. Conversations with friends suggest that there are a number of British companies who have chosen to dispense with a Christmas institution, the Office Party. But why?
There are usually polar opinions on the value of the Christmas Party: those who think it’s a waste of money that could be better spent elsewhere, and those who think it’s critical to rewarding the workforce. Often these views follow Jungian patterns: the logical and un-emotive can live without the parties, but those who are more intuitive and feeling value opportunities for bonding. One could probably stereotype these as the ‘Accountants’ View’ and the ‘HR View’. Imagine the following board room scene:
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It’s the November board meeting at Marley Corp and the board has come to the final agenda item: the Christmas Party.
Mr. Scrooge, the FD of Marley Corp, thinks that the Christmas Party is a waste of money. The company employs 10,000 people in the UK and to spend £50 a head on a party is £500k down the drain. Scrooge (being an accountant) will also tell you that it’s not just the direct costs that matter. Marley Corp has a big Christmas order to complete and he knows that the-morning-after-the-night-before is going to be pretty unproductive … and that’s the staff who appear for work at all. Scrooge has estimated that there’s at least another £500k of costs the following day. Profits are tight at Marley Corp and Scrooge sees cancellation of the Christmas Party as a quick win to cut costs. There wasn’t a party last year and the company seems to be holding steady despite the recession. He’s strongly suggesting that they cancel the party again this year.
Mrs. Cratchett has a different view. She’s the Director of People and has been fighting retention and morale issues all year. Absence rates have gone from 2% to 3% since last Christmas, in part due to the late cancellation of the big annual party. Annual employee attrition has also increased, from 20% to 25%, despite Marley Corp holding sales and employee levels constant. As far as Mrs. Cratchett is concerned, Christmas provides an opportunity to boost morale by giving something back to the workforce, not taking it away. She has asked one of the finance team to do some analysis on the costs of the additional recruitment and impact of absence but they’ve been working on Mr. Scrooge’s presentation instead. She thinks that the savings from improving employee satisfaction could be in the millions next year.
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Who will the board side with?
It seems that in a lot of boardrooms across the UK, the Scrooges are winning. During a recession, jam today seems to be more valuable than a bit more jam tomorrow. This may well prove to be a sensible rather than selfish decision, but before directors and managers make the stereotypical choice about celebrating Christmas with colleagues, maybe it’s time to brush up on their Dickens and give in to the Spirit of Christmas.
Colin qualified with Arthur Andersen in 2000, eventually leaving in 2002.
After a brief stay at Centrica, he joined Carphone Warehouse and worked in assorted roles with Talk Talk
and Geek Squad as Finance Director. After working with friends at Mint Digital, a social media agency,
Colin is now looking for a new challenge.
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