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Home / New Zealand

Does festive fun mean loyal workers?

By Steve Hart
11 Dec, 2007 04:00 PM3 mins to read

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KEY POINTS:

The staff Christmas party season is well and truly upon us with many people looking to their company or manager to provide something a bit special for an end-of-year reward.

From modest morning teas to lavish events, companies appear to be doing plenty of things to boost staff
morale at the end of the year, although seasonable freebies aren't part of the staff retention mix, says a report from recruitment firm Hudson.

"Culturally, we might all think it appropriate that the sentiments of the season _ such as goodwill and valuing others - be reflected in the workplace," says Roman Rogers, general manager of Hudson, New Zealand.

"Indeed many employers in our survey commented that the opportunity to say thank you is what really drives their Christmas initiatives.

"And for some employers that investment is significant."

According to Hudson's survey of 1747 employers across the country, 30 per cent of firms spend between $50 and $100 a person on Christmas-related initiatives, while 35 per cent splash out a whopping $500 a head on each member of staff. People working in Government departments came off worse in the survey with less than $50 being spent on each at Christmas.

More than half the employers surveyed said they provide Christmas parties for staff, and a further 25 to 35 per cent give each employee a present.

Of the companies which took part in the survey, 60 per cent said they offer Christmas-related benefits in the hope of increasing staff morale, while a further 15 to 30 per cent said their staff expect them to do something for them at Christmas.

While the survey doesn't show if this extra attention on staff makes them feel any happier, it appears most employers do not actively measure the effectiveness of the time and money spent on their staff at this time of year.

"The link between Christmas benefits and staff retention strategies is a mix of cultural and organisational factors," says Rogers.

When it comes to parties more than half the firms that took part in the survey said they organised a seasonal knees-up. But, according to most employers surveyed, it is not a last ditch effort to retain staff in the hope they will return to stay next year. That, they say, is an ongoing effort that is not linked to any particular event.

"Employers acknowledge that staff retention must be addressed year-round, and that successfully retaining staff has less to do with Christmas parties and gifts, and more to do with things such as the overall culture and climate of the organisation, supporting staff with education and training, and ensuring staff take leave and have a healthy work-life balance.

"However, more than half the employers we surveyed say they invest in Christmas initiatives to increase employee morale," says Rogers. "And a significant number of respondents invest in these benefits simply because employees expect to receive them."

But does splashing out at Christmas help when it comes to the bottom line?

It seems most employers don't measure the effectiveness of providing these benefits. "This effectively leaves the role of Christmas initiatives, and their place in the HR `arsenal' of staff benefits, in limbo," says Rogers. "They're loosely connected to, but not formally part, of employers' staff retention strategies." Rogers says that ultimately, although Kiwi workers may be treated to a Christmas party or gift there is no guarantee that those benefits will translate into increased loyalty.

* Contact Steve Hart via his website at www.stevehart.co.nz

- Spy, HoS

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