All in Good Spirit: Reimagining the Office Party Scene
Amidst challenges and new working models, discover what the year-end party scene looks like from the companies’ perspective.
With 2022 almost ending, people are looking to celebrate the end of another challenging year. But amidst the challenges they still face and new working models in place, what does the year-end party scene look like from the companies’ perspective? Challenger, Gray & Christmas, Inc. conducted a study to find the answers.
We have just a few more days to end 2022. The New Year celebrations are back. And with many companies back to the in-person working model, most of them are preparing to celebrate with their teams. But amidst the various challenges companies face, such as talent shortage and the looming threat of a recession, and many companies still working on a remote/hybrid model, how does the year-end party scene look?
To understand various organizations’ plans in relation to the current work situation, Challenger, Gray & Christmas, Inc. recently conducted a study. The following are the findings in detail.
Holiday Parties Are Making a Comeback
The study found that about 56.9% of respondents have in-person year-end parties this year, compared to 26.6% in 2021 and just 5.3% in 2020. About 2% have virtual parties this year. This is compared to 7% in 2021 and 17% the year before. Close to 6% had in-person get-togethers outside when there was warm weather this year instead of year-end celebrations.
See more: Quiet Quitting: a Symptom, Not Diagnosis of Toxic Culture
A Few Organizations Made Pandemic-related Changes
Of the organizations having in-person celebrations, 4% will make modifications to their events owing to the COVID-19 pandemic. About half of them are still unsure what the changes will be. About 30% will encourage hygiene and hand washing, while about 25% will cap the number of people who can attend. Interestingly, no one is mandating masks or holding events outside.
While a significant number of companies have arranged year-end parties this year, the percentage has been less than the pre-pandemic numbers. In 2019, almost 75% of organizations had a party. The last time fewer than 65% of organizations had year-end celebrations was in 2009. This year, about 64% of companies, including outdoor and virtual events, are having celebrations with their teams.
Organizations Are Ready To Spend More on Holiday Celebrations
When it comes to budgets, 37% of companies said their budgets remain unchanged, while 6% are planning to spend less this year. Despite concerns about an economic downturn, 16% are planning to spend more on celebrations this year. With the allocated budgets, more organizations plan to hire outside vendors/caterers than before the pandemic.
How companies will have office parties this year
Source: Challenger, Gray & Christmas, Inc.
According to Andrew Challenger, senior vice president of Challenger, Gray & Christmas, Inc:
“Employers know their teams are battling burnout, may be on the verge of quiet quitting, or are leaving their positions all together. The holiday party has always been a way for companies to show their teams they value them. Creating a space for employees to have fun together bolsters morale and connection to their employers and their work, so it really is an important retention and leadership tool for employers.”
Employers Need To Create a Hybrid Space
Employers will have to create a hybrid space to bring their staff together since many may not be gathering regularly at the workplace in today’s hybrid work environment. About 17% of companies said their workers are back in the office. This is down from 26% last year. Meanwhile, 45% of companies said their staff is on a hybrid schedule, which could mean employees may not be in-person with their colleagues on the same days.
Fewer Companies Plan To Add Employees
Not all companies and sectors are celebrating. The current economic uncertainty has affected many jobs. According to data from layoffs.fyi, over 73,000 employees in the U.S. tech sector alone were laid off in mass-level job cuts as of mid-November. According to this study, the tech industry announced over 80,000 job cuts through November this year. To top it, the tech sector made up only 10% of the survey respondents. Of those respondents, fewer than 25% of organizations will hold a holiday party. Another 29% are yet to decide, and another 17% say current economic conditions are the reason to hold off the celebrations.
The study found that fewer companies expect to hire employees in 2023. About 39% of organizations expect to continue to hire employees in 2023, compared to 63% in 2021. Another 17% said demand is soft. This was compared to 2% last year. Another 18% said current economic uncertainty makes it challenging to predict hiring in the coming year.
Meanwhile, more organizations report a downturn in business conditions. About 25% say business conditions have improved as we enter 2023. This is compared to 56% who reported this by the end of 2021. About 27% say conditions are worse than in 2021.
How business conditions are as companies enter 2023
Source: Challenger, Gray & Christmas, Inc.
See more: The Great Reengagement: What Are Employees Prioritizing?
‘Tis the Season To Be Jolly?
At the outset, looking at the improvement in the year-end party scene, a considerable number of organizations seem to have recovered since the COVID-19 pandemic first hit the world. Nonetheless, most are cautious, especially with the threat of new variants on the horizon. Further, with trends like quiet quitting and the Great Resignation taking center stage, organizations have developed year-end parties as a tool to relieve their workers’ stress and improve the employee experience.
Many organizations and industry sectors may still face threats related to layoffs, the pandemic, and recession. Yet, organizations can take the holiday season as an opportunity to show appreciation to their employees for the hard work they have put in and the mental stress they have undergone throughout the year.
What does the holiday party scene look like in your organization? Let us know on Facebook, Twitter, and LinkedIn.
Image source: Shutterstock
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