Employers face disengaged workforce by going ‘cold turkey’ at Christmas

Two thirds of managers believe that Christmas parties are important in improving employee engagement

In the wake of a report commissioned by the Government, blaming the UK’s business leaders for low levels of staff engagement*, employers are being warned not to use the recession as an excuse for failing to acknowledge the efforts of their employees.  The warning comes as new figures released by the Chartered Management Institute (CMI) show that two thirds (65 per cent) of managers across the UK believe that Christmas parties are important in helping to improve employee engagement.

The survey, of 1,337 managers, found that 66 per cent claimed that the ‘office Christmas party’ is ‘a vital way of recognising the hard work undertaken throughout the year’.  A slightly higher proportion of managers (71 per cent) also believe end of year celebrations should continue in spite of the recession.
 
However, the findings also show that managers recognise the need for responsible reward and celebration.  Asked about public perceptions, 58 per cent agreed that an expensive party could damage their organisation’s reputation.  The research also discovered that half of those questioned (50 per cent) believe that a ‘team lunch is better than an organisation wide party’.

Commenting on the findings, Ruth Spellman, CMI chief executive, says: “There are too many examples showing that the poor quality of management and leadership in the UK lies at the heart of the disengaged workforce.  Our research shows that end of year festivities are clearly still of great importance to the UK workforce but the survey raises an interesting dilemma for UK organisations.  How can employers say ‘thank you’ without incurring the wrath of the wider public?  The answer is that employee engagement has never been as important as it is now, but it must come hand-in-hand with a tighter grip around the purse strings.”

The results show that employers are being cautious about the amount being spent on end of year celebrations.  41 per cent indicate they are happy for time to be taken for a Christmas party, but will make no financial contribution. 34 per cent have agreed to pay up to £40 per head.

With 75 per cent arguing that a warm approach to Christmas ‘is good for staff morale’ it is clear, from the survey that organisations will be going some way to improve the reported 42 per cent decline in employee engagement caused by the recession – a figure highlighted in CMI’s Economic Outlook Report, published in Autumn 2009. 

Ruth Spellman continues: “The benefits to organisations of employee engagement cannot be understated.  A truly engaged organisation can expect to experience high levels of staff loyalty, retention, productivity, innovation and profitability as well as low levels of absenteeism.  Given the current economic climate these cannot be ignored as they are the stepping stones towards future, long-term success.”

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Further information:
Mike Petrook / Jo Bowles, CMI Press Office
Tel: 020 7497 0496; outside office hours: 07931 302 877
Email: press.office@managers.org.uk

Chartered Management Institute
Press Office
3rd Floor, 2 Savoy Court
London WC2R 0EZ

NOTES TO EDITORS
* ‘Engaging for Success: enhancing performance through employee engagement’, David MacLeod and Nita Clarke (July 2009)

• The Chartered Management Institute (CMI) is the only chartered professional body in the UK dedicated to promoting the highest standards of management and leadership excellence.  CMI is the guardian of the National Occupational Standards for Management and Leadership and sets the standards that others follow

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