Nearly nine in 10 (87%) UK employees reported they would rather have a bonus over a party, which increased 5% from last year; 16% of these would choose a gift card with the average value they expected being £110.
The decline in demand for a Christmas party suggests a decline in workplace relationships, commented Ian Moore, managing director at consultancy Lodge Court.
Speaking to HR magazine, he said: “With the rise in working from home, company culture and the strength of relationships among colleagues might have taken a hit, making traditional office parties less appealing.
“It seems like people are valuing financial perks that boost their wallets over the usual celebrations. This means companies might rethink how they keep their teams happy.”
Read more: How to avoid a Christmas party crisis
Companies that offer rewards over social events should consult employees about what would most benefit them, Moore stressed.
He continued: “Offering bonuses or gift cards could be a hit, since they directly give employees what they want. But it is recommended to engage employees in the decision. This way, budget is being used in the best way possible.”
However, encouraging work socials could improve collaboration and communication among teams, according to Tina Woods, CEO and founder of Business for Health, a coalition for businesses committed to long-term preventative health.
“Employers should focus on workplace events and social occasions, to improve communication between peers and foster strong workplace bonds, creating a positive environment where connections thrive,” she told HR magazine.
“When employees feel supported and valued, they are more likely to build meaningful relationships with colleagues. These bonds enhance collaboration and morale, which in turn boosts productivity and drives overall business success.”
Half of employees surveyed by Love2Shop cited having to chat to colleagues as the biggest reason they did not want to attend a Christmas party, while 36% said drunken co-workers being annoying was the reason.
Read more: Who should get annual leave over Christmas?
The personal cost of attending office Christmas parties has gone up by £4 in the last year, Love2Shop revealed, to £37 per person excluding the cost of outfits, transport or accommodation. Woods suggested that employers should consider covering the costs of work socials to incentivise employees to attend.
She added: “It is in businesses’ interests to provide appropriate perks and benefits that cultivate an effective workplace culture.
“If employees are expected to contribute financially to these events, it could create a sense of resentment or result in poor attendance.
“Supporting work events and workplace socialising is part of the solution to enhance wider wellbeing and should be regarded as a worthwhile investment to raise staff morale.”
Having events sponsored or held virtually could be a solution to continuing Christmas parties without a cost to employees, Moore noted.
He said: “To throw a Christmas party without making employees pay, companies could look into getting sponsors or hosting virtual events. These options keep the holiday cheer alive while being mindful of everyone's budget, helping to create a happier workplace.”
Love2Shop surveyed surveyed 2,000 employees in July 2024.
