Plan a No-Regrets Company Holiday Party

Do your employees need a little cheering up?

The company holiday party season is quickly approaching. Most employers host holiday parties for these worthwhile business reasons:

1. To thank and recognize employees
2. To keep morale high
3. To lay the groundwork for the coming year

Granted, thoughts of ribbons and bows and visions of sugar plums may not be in anyone’s mind this year. 2009 has been a year to remember…and, maybe one to forget!

The constant news of layoffs, pending layoffs, rising unemployment rates, business losses and bank failures, combined with a seemingly endless recession, have burdened both American workers and employers alike.

Given all this, many employers are asking, "Should we even plan a holiday party?"

In fact, for over a year now, organizations have been scaling back—I read about one Manhattan law firm that canceled its holiday fireworks display last year—as they went for a more "understated event" instead.

While most employees certainly are not expecting fireworks this holiday season, they probably will welcome relief from all the negativity. So, this is the time of year that many employers evaluate appropriate ways to reward and acknowledge employees for their contributions.

As employers evaluate their options, it's important to remember that employees usually take their cues from their bosses.

Tthe following considerations are intended to help employers reduce potential risks or help prevent the after-party blues:

1. Plan accordingly. In other words, if a business has suffered financial problems, layoffs, etc., lavish festivities may not be perceived well by anyone
2. Recognize potential risks. Some HR statistics show that one-out-of-every-three holiday parties can result in legal or morale problems for the employer. For instance, just one employee misconduct incident can pose serious liabilities and/or consequences for other employees and the employer.
3. Remind managers and supervisors that they are on duty. This precaution is particularly important if the holiday party will:
   • take place at night or on the weekend
   • be held offsite
   • include alcoholic beverages

4. Consider hosting a holiday lunch on company property. If your business has traditionally held an after-hours holiday party at some expensive hotel or restaurant, you might use this year as an opportune time to break tradition. You might even find some creative and enthusiastic employees who will enjoy planning the entertainment. When feasible, some employers even give employees the rest of the afternoon off. Talk about a morale booster!
5. Remind employees that policies are still in effect. Remember that employers can be held liable for unlawful or harassing behaviors by employees, even at a holiday party. Make it clear that improper behavior, sexual jokes or advances, vulgar language, and, yes, inappropriate physical contact will not be tolerated. Believe it or not, employees have been known to get out of control and engage in fist fighting, etc. at company holiday parties.

Are you still thinking about serving alcohol and hosting your company holiday party after-hours and offsite? No one wants to be a Scrooge, but employers will also want to avoid pitfalls that can end up making the new year seem like a very long 365 days.

For more information about serving alcohol at company holiday parties, read this HRTools.com article: Save Your Business with a Festive and Safe Holiday Party

Company parties are business and social events. Employees usually take their cues from the boss.