According to Director Magazine, corporate Christmas parties can provide businesses with big returns in exchange for a relatively small outlay.
That’s because a Christmas party can be utilised as a way to reward employees, especially when financial incentives are out of the question. It’s advised that small businesses which can’t afford to pay bonuses would do better to invest the money they can spare in a party.
“The cost per employee of a Christmas party is relatively low compared to the engagement that a company is likely to get from the event,” explained Debi O’Donovan, editor or Employee Benefits Magazine. “In terms of bang for your buck, it’s highly effective.”
Businesses should remember that they get a tax allowance for corporate events; up to £150 tax-free can be spent on each employee. If the same was awarded in a bonus, it would be subject to national insurance and tax deductions, which would quickly eat into the sum.
The best way to plan corporate Christmas parties, advises Director Magazine, is to involve staff with the planning process and take on board their ideas. “If you’re a managing director, and you are on a significantly different salary, you can forget what’s important to staff so you need to ask them what they want as well,” Ms O’Donovan advised.