Office parties are still in full swing

Dec 17 2008 by Chris Knox, The Journal

THE economic chill has not yet put the freeze on North East bosses’ plans to give their staff a little festive cheer by throwing an office party.

Around seven out of 10 employers in the region are planning to host a Christmas staff party and many will even be buying presents for the workers in an attempt to boost morale, according to the Chartered Management Institute’s (CMI) annual ‘Christmas Outlook’ survey.

And as the looming recession threatens any optimism about the year ahead, more bosses (69%) are organising an event this year than in 2007 when the figure was 66%.

More than 80% of employers said that they intended to party in the face of the downturn in order to boost staff morale and were determined to reward staff for their hard work during the past year. Further evidence that the credit crunch has not turned the North East into a region of Scrooges is the fact that 50% of line managers buy gifts for each member of their team, while 10% allow their staff to take time off without using their holiday entitlement.

Jo Causon, director of marketing and corporate affairs at the CMI, said: “It should come as no surprise that employers are controlling Christmas budgets with tighter purse-strings this year.

“However, it is encouraging to see that responsible budget management is going hand-in-hand with an effort to thank staff for their efforts during the year and a determination to recognise hard work.”

Although there are firms that are cutting back this year, including Newcastle-based bank Northern Rock, which has decided not to hold a party in light of its turbulent year, there are still companies within particularly affected sectors that are still treating their staff. One of these firms is Newcastle-based Surgo Construction, which is treating its office staff to a slap-up meal and drinks, and is allowing its site workers to take a half day, despite the challenges facing the construction sector.

Director Jeff Alexander said: “We are keeping our promise to treat our staff as we feel it is good for morale, especially at a time where a lot of people are uncertain about how things will pan out in the wider economy next year.”

Washington-based party organiser Encore has been inundated by some of the region’s biggest companies looking to dance the night away this Christmas, despite the demoralising effects of the economic downturn.

Manager Tracy Robson said: “We have been getting steadily busy over the last month but are expecting things to really take off over the next couple of weeks. Although the number of our orders show very little movement on last year, it’s certainly the case that we are on par.

“A lot of employers in the North East realise how important a Christmas party can be to their staff and are not letting the credit crunch get in the way of their annual knees-up.”