The majority of small businesses will still have a Christmas do this year despite the current economic conditions, according to a survey by the Chartered Institute of Personnel and Development (CIPD).
The research found that 82% of businesses with up to 49 staff will offer either a party or lunch, a higher rate than those with between 50 and 249 employees (74%) and those with between 250 and 999 (60%).
Companies in the private sector services industry are the most likely to host a festive get-together, while those in the public sector are least likely with only 24% likely to have a party or lunch (down from 26% in 2007).
The number of businesses doing so in the manufacturing and production industries dropped from 77% in 2007 to 67% this year, although this sector was the most likely to offer staff a Christmas gift in the form of a hamper or voucher, with nearly 16% doing so.
"As ever, employers need to think about why they are providing a Christmas party in the first place," said Charles Cotton, CIPD reward adviser. "If it is to recognise the collective contribution of their employees, then what are the alternatives and are they more effective?
"If holding a Christmas party is the most effective way of achieving this, then employers should be wary about scrapping them in response to the economic downturn because the long-term impact could be damaging on employee engagement and organisational performance," he added.
"The Christmas party is one way of reminding staff that they are part of a common endeavour."
The research was taken as part of the CIPD's annual reward management survey; the results of which will be unveiled in February 2009.
