RESOURCE LIBRARY

Rethinking the Holiday Party: Company holiday party alternatives

This guide covers company holiday party alternatives.

Maybe your team might not be so keen on joining you for that Christmas or Holiday party anymore.

Gift cards · Prepaid cards · Direct payments · Merchandise · Charity · Swag

OVERVIEW

Why company holiday party alternatives matters

Maybe your team might not be so keen on joining you for that Christmas or Holiday party anymore.

AT A GLANCE

7 in 10 employees prefer alternatives to holiday parties

With 7 in 10 employees having a preference for gifts or bonuses, is it time for your organization to reconsider the traditional holiday party? ~Visier (2023)

Key Reasons Employees Dislike Holiday Parties:

Forced social interactions or mingling with colleagues in a non-work setting.
Discomfort with alcohol consumption or inappropriate behavior at parties.
Feeling that it takes time away from personal commitments during a busy holiday season.
Preferring a different form of recognition, such as bonuses, time off, or personalized gifts.
Figuring out what is appropriate to wear to the gathering.

Forced social interactions or mingling with

Forced social interactions or mingling with colleagues in a non-work setting.

Discomfort with alcohol consumption or inappropriate

Discomfort with alcohol consumption or inappropriate behavior at parties.

Feeling that it takes time away

Feeling that it takes time away from personal commitments during a busy holiday season.

Preferring a different form of recognition,

Preferring a different form of recognition, such as bonuses, time off, or personalized gifts.

Figuring out what is appropriate to

Figuring out what is appropriate to wear to the gathering.

IN DETAIL

69%

69% of employees would choose a bonus or other gift option over attending a holiday party if given a choice.

More on company holiday party ideas →

64%

“63% of employees said they don’t want a festive celebration at all.”

— HR News

IN CONTEXT

64%

64% of employees have reduced or completely stopped attending company events held after work hours in 2023.Now that the fall season is upon us, it’s time for organizations to start planning how to acknowledge the holidays.Holiday Party?Should we hold a traditional holiday party or celebration for employees?Holiday celebrations have historically played a crucial role in encouraging a sense of camaraderie and community, and boosting morale by showing appreciation for the efforts employees have put in throughout the year.It’s becoming increasingly evident that not all employees feel the same way about traditional ways of celebrating the holidays.The traditional holiday party celebration may just not be effective anymore.And your employees may not even want the celebrations.

“63% of employees said they don’t want a festive celebration at all.”
— HR News

IN DETAIL

88%

88% of employers cited Employee time off as the most important element to overall employee engagement.

More on company holiday party ideas →

IN DETAIL

56%

56% of employers said that company holiday parties are unpopular to neutral popularity among employees.

TruCentive Survey

Party Risks

Consider the financial and cultural risks

Less is More

More frequent less costly holiday strategies

Incentive Ideas

Mix it up with more employee options

More on holiday incentive ideas →

IN DETAIL

The History of Holiday Parties

The tradition of the modern office holiday party is believed to have originated in Victorian England, specifically in 1843, according toNew Castle News. That year, Charles Dickens’A Christmas Carolintroduced readers to the character Fezziwig, who hosted a lively Christmas party for his employees, setting the stage for the festive office gatherings we recognize today. Dickens described the scene:
“In came a fiddler with a music-book. In came all the young men and women employed in the business… There was cake, and there was negus [a hot toddy], and there was a great piece of Cold Roast, and there was a great piece of Cold Boiled, and there were mince-pies, and plenty of beer.”

Evolution of the Holiday Party

Since Fezziwig’s time, office holiday celebrations have transformed significantly, with some becoming legendary for their extravagance. In 1976, Boeing made headlines with an over-the-top holiday party at Seattle’s Kingdome stadium, featuring aerial circus acts, lion and tiger exhibitions, and a Santa Claus parade.

The event was so large it had to be split into two 90-minute sessions over the course of the day, according toHistory Link. Other companies have followed the “go big or go home” philosophy. In 2014, Yahoo hosted a Wizard of Oz-themed holiday party, complete with a performance by singer-songwriter Janelle Monae, as reported byBusiness Insider. In 2019, Baltimore-based St. John Properties went even further by gifting its 198 employees a total of $10 million in bonuses at their holiday celebration, an event covered byGood Morning America.

More on company holiday party ideas →

THE PROBLEM WITH HOLIDAY PARTIES

“70% of employees feel pressured to attend company holiday parties.”

— What Do Your Employees Really Think About Holiday Parties? Finance Buzz

IN CONTEXT

The Problem with Holiday Parties

Not all employees like holiday parties. The prospect of giving up precious personal time is an imposition to many employees who may already be juggling the demands of home, work, commuting and family. Employees value their personal time as an opportunity to recharge, pursue hobbies, spend time with family, and engage in activities that contribute to their well-being. Giving up this time for work events disrupts their ability to maintain a healthy work-life balance. A discussion of the “Right to Disconnect” is beginning to occur in several jurisdictions around the world. Although not specifically geared towards celebrations, it is an indication of a growing interest in legislating protections for employees’ personal time. Savvy employers should make themselves aware of employee sentiment.

“70% of employees feel pressured to attend company holiday parties.”
— What Do Your Employees Really Think About Holiday Parties? Finance Buzz

Employees may resent the imposition of social events and may not see the value in attending them, especially if they don’t enjoy the planned activities or don’t feel they’ll benefit from the experience. Your employees may feel that the time would be better spent on activities that they personally value, such as personal hobbies, self-care, or even professional development that aligns with their interests. If you do elect to have a party make sure that employees know thatopting outof a holiday party is totally fine. Jennifer Moss makes the case inFast CompanyMagazine that listening to employees preferences and needs is critically important,

“63% of employees say they have regrets about their holiday party conduct in the past.”
— Finance Buzz

THE RISKS OF HOLIDAY PARTIES

“31% have seen a manager act inappropriately with staff.”

— Finance Buzz

IN CONTEXT

The Risks of Holiday Parties

Holding a Christmas party at work, while often seen as a way to boost morale and celebrate the season, can present several risks. Employers must ensure that the event does not appear mandatory or focused on just one faith. It’s just common sense to be mindful of employee perception. Here are some key considerations:

Discrimination:

Discrimination may become a factor for some who perceive the celebrations as overtly religious. A Christmas party often focuses on a holiday with religious origins, which could alienate employees who do not celebrate the same holidays. Holding a party that revolves around a specific religious holiday might be perceived as religious if employees of other faiths or those who do not celebrate feel excluded. Celebrations that are heavily focused on just one cultural or religious theme might lead to claims of creating a hostile or non-inclusive work environment, which can result in employee alienation, workplace grievances and even action.

Inappropriate Behavior:

Office parties, particularly those that include alcohol, often lead to inappropriate behavior, including allegations of sexual harassment. Employers can be held liable for harassment that occurs during work-related events, even if the event is off-site and outside normal working hours. Employers have a responsibility to take appropriate steps to prevent and to address claims promptly. Seemingly harmless actions, like mistletoe traditions or playing suggestive music, can be perceived as contributing to a hostile work environment, especially if employees feel uncomfortable or coerced into participating.

“31% have seen a manager act inappropriately with staff.”
— Finance Buzz

Booze:

In many jurisdictions, social host liability laws can hold employers accountable if they serve alcohol at a company event and an intoxicated employee subsequently causes harm to themselves or others. This is now a firmly held legal principle that suggests hosts (in this case, the employer) can be held responsible for the actions of employees who leave the event under the influence.

“All that socializing is draining for introverts, who often feel overstimulated, even anxious, in large groups.”
— PJ Feinstein, The Muse — An Office Holiday Party Survival Guide for Introverts and Shy People

Still Having a Party?

If you are going to hold a celebration, consider holding a “holiday” or “year-end” party that includes all employees and acknowledges various traditions. Make the event optional and clearly communicate that attendance is not required. Limit or eliminate the serving of alcohol, or provide transportation options to prevent drunk driving. Train managers and supervisors to handle any incidents appropriately and ensure all harassment policies are communicated clearly before the event.

IN DETAIL

Holiday Cheer Without the Holiday Party

Recognizing employee contributions and showing gratitude with tangible tokens of appreciation enhances morale, employee engagement, and satisfaction, significantly contributing to a positive and productive work environment.82% of employees expect gifts around the holidays– Society for Human Resource Management (SHRM)75% of employees say gifts enhance morale– Staples AdvantageCompanies that gave holiday gifts saw a 10% decrease in employee turnover– The Hay GroupMany companies are choosing to forgo the traditional holiday party in favor of more personalized and smaller gestures of appreciation. With changing employee preferences and a growing emphasis on work-life balance, businesses are increasingly opting for activities such as sending curated gift selections, offering extra paid time off, or organizing smaller team outings instead of a large end-of-year event. Some companies are also introducing wellness, activity, and charitable giving opportunities as alternative ways to celebrate the season. These changes provide employees with more meaningful and flexible rewards but also help create a more inclusive and stress-free holiday experience for diverse teams.

More on company holiday party ideas →

AT A GLANCE

Statistics on the Effectiveness of Frequent, Lower-cost Signs of Gratitude for Employees:

Using several lower-cost employee engagement events or actions throughout the holiday season may be more effective and better suited to a diverse organization for a variety of reasons:

Mix it up this holiday season

Create more memorable experiences with multiple expressions of gratitude

The idea of giving more frequent, lower-cost signs of gratitude or rewards to employees this holiday season is often considered more effective for boosting morale and engagement than infrequent, high-cost rewards. Several studies and surveys provide insights and statistics that support this approach:

Continuous, smaller signs of appreciation throughout

Continuous, smaller signs of appreciation throughout the holiday season can maintain a steady level of morale and motivation, as opposed to a one-time event that may be quickly forgotten.

According to a study by O.C.

According to a study by O.C. Tanner, frequent recognition is 42% more effective at improving engagement and retention than sporadic large events. Continuous appreciation leads to a more sustained impact on employee satisfaction.

Smaller engagement actions often cost less

Smaller engagement actions often cost less than large holiday parties and can offer a higher return on investment when spread out over the season. Companies can maximize their budget’s impact by offering personalized gifts, experiences, and time off.

SHRM’s 2023 study on employee recognition

SHRM’s 2023 study on employee recognition found that companies that spent 1% or more of payroll on employee recognition had 31% lower voluntary turnover. Companies that spread recognition across several actions often find better engagement results at a lower overall cost.

The holiday season can be a

The holiday season can be a stressful time for employees. Wellness activities or experiences, such as mental health days, wellness kits, or relaxation-based events, can help reduce stress.

CONTINUED

Statistics on the Effectiveness of Frequent, Lower-cost Signs of Gratitude for Employees: (continued)

A 2021 survey by Limeade found

A 2021 survey by Limeade found that 94% of employees believe that workplace support for their mental well-being is critical, particularly during busy or stressful times like the holiday season. Smaller, well-being-focused actions can have a lasting positive impact.

As more organizations adopt remote or

As more organizations adopt remote or hybrid work models, large in-person gatherings may not be feasible or appealing. Offering a variety of smaller, adaptable recognition efforts, such as virtual team-building activities, remote gifts, or additional PTO, better serves a distributed workforce.

According to a McKinsey report, 58%

According to a McKinsey report, 58% of employees now work remotely at least part of the time, and 63% prefer virtual or flexible engagement activities over traditional in-person events.

Not all employees celebrate the same

Not all employees celebrate the same holidays or participate in the same traditions. Offering multiple, smaller engagement actions allows for greater inclusivity and personalization.

In a survey conducted by the

In a survey conducted by the Society for Human Resource Management (SHRM), 70% of employees stated they would prefer inclusive celebrations that recognize a variety of holidays and traditions rather than a single company holiday party.

CONTINUED

Statistics on the Effectiveness of Frequent, Lower-cost Signs of Gratitude for Employees: (continued)

After-hours events, like holiday parties, can

After-hours events, like holiday parties, can contribute to employee burnout and may not align with employees’ personal schedules or commitments.

According to a recent study by

According to a recent study by Visier, 64% of employees reduced or completely stopped attending after-hours company events in 2023, highlighting the increasing desire for work-life balance. Additionally, 69% of employees stated they would prefer a financial bonus or appreciation gift over attending a holiday party.

Offering smaller, more frequent recognition activities

Offering smaller, more frequent recognition activities provides flexibility, allowing employees to engage at their own pace, instead of feeling obligated to attend one large event.

A 2022 Gallup poll found that

A 2022 Gallup poll found that 74% of employees prefer flexible work environments, which extends to how they engage with company activities. Events or actions experienced at employees’ convenience (e.g., gift distributions, wellness kits, or local team outings) are often more effective.

Multiple small gestures of appreciation, such

Multiple small gestures of appreciation, such as gift cards, personalized experiences, or wellness activities, allow companies to tailor rewards based on employees’ preferences, making them feel more personally valued.

CONTINUED

Statistics on the Effectiveness of Frequent, Lower-cost Signs of Gratitude for Employees: (continued)

Research from Deloitte shows that 91%

Research from Deloitte shows that 91% of companies with personalized employee recognition programs report higher levels of employee satisfaction compared to those with standardized programs.

5. Smaller, Continuous Recognition Boosts Morale

6. Budget Efficiency and ROI

7. Mental Health and Well-being Focus

8. Adaptability for Remote/Hybrid Workforces

CONTINUED

Statistics on the Effectiveness of Frequent, Lower-cost Signs of Gratitude for Employees: (continued)

1. Diverse Preferences and Inclusivity

2. Work-Life Balance and Fatigue

3. Increased Flexibility

4. Tailored Recognition

By spreading out appreciation efforts and using multiple lower-cost, tailored actions, organizations can foster a more inclusive, engaged, and motivated workforce. These efforts are more adaptable to employees’ individual preferences and cultural needs, ultimately creating a more effective recognition strategy for a diverse team.

Ease of Use

A well thought out system makes managing gift and incentive programs simple. Begin with expertly crafted templates, or unleash your creativity.

CONTINUED

Statistics on the Effectiveness of Frequent, Lower-cost Signs of Gratitude for Employees: (continued)

Employee Satisfaction

Surprise and delight employees! Employees remember actions. It’s important that holiday gifts be appropriate and memorable.

Employee Choice

Curate a small number of gift and incentive choices. Studies show that a number of acceptable choices are preferred by employees rather than a single choice.

Breadth of Incentives

The broadest range of incentives and payment options including merchandise, SWAG, gift cards, payments and local and international choices.

Economics

Return the value of unclaimed incentives and reduce program waste. TruCentive customers save 23% on average over “free” delivery incentives.

IN DETAIL

Statistics on the Effectiveness of Frequent, Lower-cost Signs of Gratitude for Employees:

Continuous, smaller signs of appreciation throughout the holiday season can maintain a steady level of morale and motivation, as opposed to a one-time event that may be quickly forgotten.
According to a study by O.C. Tanner, frequent recognition is 42% more effective at improving engagement and retention than sporadic large events. Continuous appreciation leads to a more sustained impact on employee satisfaction.

Smaller engagement actions often cost less than large holiday parties and can offer a higher return on investment when spread out over the season. Companies can maximize their budget’s impact by offering personalized gifts, experiences, and time off.
SHRM’s 2023 study on employee recognition found that companies that spent 1% or more of payroll on employee recognition had 31% lower voluntary turnover. Companies that spread recognition across several actions often find better engagement results at a lower overall cost.

The holiday season can be a stressful time for employees. Wellness activities or experiences, such as mental health days, wellness kits, or relaxation-based events, can help reduce stress.
A 2021 survey by Limeade found that 94% of employees believe that workplace support for their mental well-being is critical, particularly during busy or stressful times like the holiday season. Smaller, well-being-focused actions can have a lasting positive impact.

More on company holiday party ideas →

IN DETAIL

Statistics on the Effectiveness of Frequent, Lower-cost Signs of Gratitude for Employees: (continued)

As more organizations adopt remote or hybrid work models, large in-person gatherings may not be feasible or appealing. Offering a variety of smaller, adaptable recognition efforts, such as virtual team-building activities, remote gifts, or additional PTO, better serves a distributed workforce.
According to a McKinsey report, 58% of employees now work remotely at least part of the time, and 63% prefer virtual or flexible engagement activities over traditional in-person events.

Not all employees celebrate the same holidays or participate in the same traditions. Offering multiple, smaller engagement actions allows for greater inclusivity and personalization.
In a survey conducted by the Society for Human Resource Management (SHRM), 70% of employees stated they would prefer inclusive celebrations that recognize a variety of holidays and traditions rather than a single company holiday party.

After-hours events, like holiday parties, can contribute to employee burnout and may not align with employees’ personal schedules or commitments.
According to a recent study by Visier, 64% of employees reduced or completely stopped attending after-hours company events in 2023, highlighting the increasing desire for work-life balance. Additionally, 69% of employees stated they would prefer a financial bonus or appreciation gift over attending a holiday party.

More on holiday incentive ideas →

IN DETAIL

Statistics on the Effectiveness of Frequent, Lower-cost Signs of Gratitude for Employees: (continued)

Offering smaller, more frequent recognition activities provides flexibility, allowing employees to engage at their own pace, instead of feeling obligated to attend one large event.
A 2022 Gallup poll found that 74% of employees prefer flexible work environments, which extends to how they engage with company activities. Events or actions experienced at employees’ convenience (e.g., gift distributions, wellness kits, or local team outings) are often more effective.

Multiple small gestures of appreciation, such as gift cards, personalized experiences, or wellness activities, allow companies to tailor rewards based on employees’ preferences, making them feel more personally valued.
Research from Deloitte shows that 91% of companies with personalized employee recognition programs report higher levels of employee satisfaction compared to those with standardized programs.

TruCentive has a superb range of holiday gift selections

TruCentive puts the economics of effective holiday gifts and incentives in your favor.

More on company holiday party ideas →

IN DETAIL

Statistics on the Effectiveness of Frequent, Lower-cost Signs of Gratitude for Employees: (continued)

Unlike other incentive automation platforms, TruCentive charges a small delivery fee and automatically returns the value of unclaimed incentives to your account.Stop paying more than 20% for your “free delivery.”Giving Holiday Gifts?Read all about Holiday Gift Giving here.

More on holiday incentive ideas →

IN DETAIL

Statistics on the Effectiveness of Frequent, Lower-cost Signs of Gratitude for Employees: (continued)

Sports and Fitness

Technology

Fine Dining

General Shopping

More on company holiday party ideas →

IN DETAIL

Statistics on the Effectiveness of Frequent, Lower-cost Signs of Gratitude for Employees: (continued)

Local by Zip Code

Full Catalog – Worldwide

More on holiday incentive ideas →

IN DETAIL

Summary

Celebrating the holidays by giving incentives instead of holding a company holiday party is a more inclusive and memorable way to recognize employees’ contributions and work.Employees value personal time and typically prefer tangible rewards over attending work-related events outside of regular business hours. Offering incentives such as year-end bonuses, gift cards, and extra paid time off can show appreciation in a more meaningful way.Incentives also offer practical benefits for the company. They can be a more cost-effective alternative to organizing a large event and can help avoid potential issues such as cultural insensitivity, liability for accidents, or inappropriate behavior often associated with parties.The best part is that incentives can be tailored to individual preferences and choices, which is more appreciated than a one-size-fits-all event.So instead of the holiday party with a great piece of Cold Roast, Cold Boiled, and mince-pie this year, look into alternate forms of celebration.

More on company holiday party ideas →

GET STARTED

Incentive delivery that means more and costs less

Unclaimed rewards returned, always. Build a complete project in the campaign builder with your logo, your recipients, and your incentive selections, then send. Related reading: company holiday party ideas, holiday incentive ideas.

No credit card required →

SOC2 Type II · HIPAA · PCI DSS · WCAG 3.0 · GDPR