The holiday work party: has the time come to ditch it?

Many well-meaning employers throw holiday parties this time of year as a token of their appreciation for their workers, but one expert says such celebrations can have the opposite effect if not done right, and there are better ways to show real gratitude to employees.

According to HR veteran Joe Mull, author of “Employalty: How to Ignite Commitment and Keep Top Talent in the New Age of Work” and host of the “Boss Better Now” podcast, a work party – especially outside of working hours – is probably not the way to go.

Mull notes that the holiday season tends to be one of the most stressful times of the year for people in general, and when employers add things to the calendar that are above and beyond what normally occupies employees’ time, they just make it more stressful for people. 

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“A party or event after hours isn’t a gift, as it can often become yet another obligation that adds stress and robs people of precious and limited personal time,” he said.

So, if a workforce is stressed beyond what is normal, it can create all sorts of problems in business, Mull explained, such as lower productivity and worse customer experiences on top of employees not feeling like they are being treated as well as they should be.

“If we’re being honest about what most employees really want in their life, during December, it’s less stress,” Mull told FOX Business. “It’s more time. It’s the money in their pocket, and to feel appreciated, and we can do all of those things without ‘mandatory fun.’”

Mull suggests employers take the money or resources they would spend on a holiday party or a gathering and put it back in employees’ pockets as a bonus or a gift card, while acknowledging that it is a stressful time of year. 

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In addition, he recommends using the time that would have been spent planning the party and instead writing personal notes to employees specifically highlighting the contributions they have made to the company or to their team.

Mulls says if employers feel strongly that they want their teams to have a holiday gathering, they should hold it during working hours and then dismiss people early.

However, there are exceptions. Mull says if a company’s holiday gathering is a legacy event that everyone looks forward to all year long, then an employer could actually do harm by removing it from the schedule. So, business owners need to do an honest evaluation of what role their gathering plays for the people it is supposed to celebrate.