Companies have been hosting Christmas parties for their teams for a very, very long time. Office parties are a great way to show employee appreciation, celebrate the end of year, and often focus on team building. They’re a great way to promote employee retention as they leave your team feeling valued and ready for the year to come. Office parties are also generally a good time to come together in a more relaxed atmosphere.
The current cost of living crisis has definitely become a factor when businesses are deciding whether to host a Christmas party in 2023. So, given financial constraints, are companies investing in Christmas parties in 2023? We’ve found that corporate Christmas events are still happening, with key dates filling up in December as early as the end of September. It seems as if the party will go on!
The Cost of Living Crisis And How It’s Affecting Company Culture
The cost of living crisis refers to a situation where the overall cost of living rises really quickly and outpaces the rate of income growth for most of the population. That basically means that people are finding it really hard to afford the basic necessities of life. Thankfully, it seems as if the inflation rate is slowly levelling off. Still, over the last year, people have seen a rise in the cost of food, bills, and more. In businesses there has been some wage stagnation, despite the minimum wage rising.
Some corporate companies have seen budget or hiring freezes to cut their costs. And while they’re trying to save money, non-essential events like Christmas parties and team away days are often the first thing to get the axe. While it doesn’t seem like people are cancelling their parties all together, it does seem as if some budgets have been reduced. We’ve also noticed that a lot of people are combining all of their events into one big one around the holidays. Whether that’s planning an off site for December or booking multiple venues – one for team building and one for celebrations, saving the culture budget for the end of the year seems to be a trend.
The Dilemma for Companies
Businesses are having to tighten their budgets and prioritise their expenses with the cost of living crisis. However, we have found that corporate Christmas parties are still happening. Hosting a Christmas party in 2023 is an excellent way to boost morale and reward employees all together. Lots of companies are looking for different ways to cut costs so they can still get their entire team together for an event. A lot of companies have reverted to hybrid working to reduce the cost of their offices, opting for hot desk options instead of everyone having their own space. By doing this, they’re able to bring their team together for office parties throughout the year.
You Can Still Have a Christmas Party on a Budget!
We’ve found that people are still really excited about corporate Christmas events. They just look a little bit different, depending on the company’s financial situation. Some people still have huge budgets to blow, however we’ve seen a lot of companies are looking for more budget-friendly options. There are lots of venues around the UK that offer minimum spend options, significantly reducing the price of a holiday celebration. Some make an entire day of it, starting with team building activities in their office, followed by pizza and beer before heading to a bar for a couple of rounds of drinks. Some get the entire team involved and either bring in a dish for lunch or dinner or come up with an activity for everyone to participate in. You can still have a Christmas party in 2023, no matter your budget!
Find Out What Your Employees Want
A great way to determine what kind of Christmas celebration you should host this year is by sending out a survey to your team. If you haven’t started looking for a venue yet, or planning your party, put a few questions together and get your team’s opinion. It’s a great way to find out what they’re expecting and what they would like to do. Present options where they can vote between a sit down meal, drinks at a bar, or a big party. Ask them how important it is to get together at the end of the year, even if it’s scaled down. Getting the input of your company is a great way to manage expectations. And as soon as you know what you’d like to plan, get to it! The best venues fill up quickly.
The Ripple Effect on the Events and Venue Industry
One way that venues are responding to reduced corporate budgets is by offering packages and discounted rates on certain days of the week. Hosting your office parties on a Monday may end up being a lot cheaper than later in the week. And if you want to save on food and drink, ordering ahead of time and utilising packages, will slash prices. It’s best to be as flexible and adaptable as possible when it comes to planning your event if you want to keep costs down. By being flexible, venues are still able to fill their spaces and corporate Christmas parties can still happen.
While the cost of living crisis has definitely had an impact on the events industry, we’re still seeing a great number of Christmas parties being planned. Companies are prioritising connection, celebration, and employee appreciation regardless of scale or budget. The spirit of Christmas celebrations can still thrive – they just may look a little different for some companies. No matter your budget, be sure to get in touch with VenueScanner! We can help you find the perfect venue for your corporate Christmas events.
