Employers continue to celebrate Christmas, despite credit crunch

11 December 2008 – Far from being the victim of cutbacks, Christmas parties remain on the agenda for many organisations across the UK.  However, a survey published today reveals that employers now prefer to spend their money on social causes and more personal ‘thank yous’ to staff.

The Chartered Management Institute’s annual ‘Christmas Outlook’ survey reveals that 67 per cent of employers will host parties in 2008 – a figure that remains broadly consistent with last year (66 per cent).   Yet in a sign that ‘budget bashes’ are dominating the festive season, just 11 per cent strongly agree with the idea that employees’ partners should be included.  Perhaps surprisingly, given the current need to focus on customer retention, only 3 per cent plan to invite clients.

Asked to explain why they intended to party in the face of current financial difficulties, 69 per cent pointed to the need to boost staff morale.  However, the data does show that many employers believe extravagant parties are unnecessary.  45 per cent, for example, suggest that ‘hosting expensive parties can have negative impact on reputation’.

The survey, of 1,243 managers and business leaders, also reveals that 1 in 4 employers will make no financial contribution to ‘office parties’, this year.  Some (28 per cent) have agreed to pay up to £40 per person, but this figure is in decline, falling from 37 per cent, twelve months ago.

According to the findings, employers are also adopting a more socially aware attitude in the run-up to Christmas.  22 per cent now demonstrate their concern for the environment by sending e-Cards (up from 15 per cent in 2007).  Amongst those still reliant on traditional Greetings Cards, 39 per cent only buy cards supporting a specific charity.  47 per cent also argue that ‘Christmas is an appropriate time to engage in CSR activity’.

It is clear from the Institute’s survey that employers are refusing to allow the tighter economic circumstances stop them from showing appreciation to their colleagues.  Asked how they say ‘thank you’, 41 per cent of line managers admit to buying gifts for each member of their team, 40 per cent actively encourage their teams to take time off (even though 43 per cent intend to work themselves) and 14 per cent give time off, without taking it out of their staff’s holiday entitlement.

Jo Causon, director, marketing and corporate affairs at the Chartered Management Institute, says: “It should come as no surprise that employers are controlling Christmas budgets with tighter purse-strings this year.  However, it is encouraging to see that responsible budget management is going hand-in-hand with an effort to thank staff for their efforts during the year and a determination to recognise hard work.”

Away from work, the survey also asked respondents to name the ‘must hear’ festive music.  Among the favourites, this year, were Silent Night, Fairy Tale of New York (The Pogues) and Bing Crosby’s White Christmas.

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Further information:

Mike Petrook, Institute Press Office

Tel: 020 7497 0496; outside office hours: 07931 302 877

Email: press.office@managers.org.uk

Website: www.managers.org.uk

NOTES TO EDITORS

As the champion of management, the Chartered Management Institute shapes and supports the managers of tomorrow, helping them deliver results in a dynamic world. The Institute helps set and raise standards in management, encouraging development to improve performance. Moreover, with in-depth research and regular policy surveys of its 81,000 individual members and 450 corporate members, the Institute has a deep understanding of the key issues.  The Chartered Management Institute came into being on 1 April 2002, as a result of the Institute of Management being granted a Royal Charter.