Backlash after companies cancel Xmas parties

BY DAVID GADD

Companies playing Scrooge and cancelling Christmas functions are being forced to back track because of the staff backlash.

After one of the most turbulent of economic years where investors have lost life savings, businesses have collapsed and purse strings have been tightened all round, some firms have taken the opportunity to cancel the traditional Christmas staff knees up.

Stuff readers have told us tales of woe - parties downgraded, cancelled altogether, gifts gone. A common theme was summed up by one bank worker who said they all had to stump up $20 and pay their own way, but it still made for a great night.

Hardest hit seem to the public servants, with Government departments being particularly tight this year.

One state servant told us: "It's a dinner. There's no party. They make us pay for it, and if you bring a partner you pretty much need a bank loan. What a way to cap off a year of crap cut backs that made us feel respected for the truly horrible things we have to put up with."

Another said: "I'm a public servant within a unit of 100 plus skilled educated people. We haven't had a proper Christmas party in well over five years and alcohol is banned from the premises without special permission. For years all we have been given is one-hour off work for a party or a lunch but we have to pay for it ourselves. No alcohol may be consumed at lunch. No leaving early on Xmas eve either."

State Services Commission spokesman Jason Ryan said there is no blanket policy on Christmas parties, it was the responsibility of each department or ministry.

But there is overarching guidance that Government departments needed to act responsibly and that meant "they need to make sure they use their organisations' resources carefully and only for intended purposes so while it is quite appropriate to have an end of year celebration it shouldn't be anything that is particularly lavish and it should be conducted with the expectations the government has been giving about constraint when all New Zealanders are experiencing that."

But Jason Walker, Managing Director of Hays Recruitment, said cancelling the Chrissy party was a mistake.

"It is one of those things that has become part of the culture and almost part of the benefits package that you just expect at the end of the year."

Staff might not say anything directly to the boss, but word got around and it could end up hurting a company's reputation - and turn off future employees.

"It's had a significant impact on the morale of staff - to the point where some organisations and businesses have actually turned their decision around - instead of not having any Christmas party all, maybe just reducing the costs on what they are doing this year, so they are reincorporating Christmas parties."

Mr Walker said far better than being a Grinch and cancelling Christmas altogether, it was better to try to trim costs - staff could accept that.

But staff did expect there should be something, especially at the end of the recession it was important to make sure staff knew they were appreciated working through some tough times.

Parties also gave an opportunity for bosses and workers to talk candidly outside of the official workplace.

It seems from what Stuff readers have told us, some companies have been less open about needing to cut costs and went for sneaky tactics instead - like moving the party to a Tuesday night with a prohibition on turning up at work hung over the next day, which effectively cut the booze bill.

Others have cancelled dinners and opted for lunches, which means shorter time, limits the ability for partners to come along, and therefore smaller cost.

Still others have claimed instead of staff Christmas presents they were making a donation to charity on behalf of staff - with no figures of course provided about how much or to who.

For others however, the recession hadn't dented flashing the cash - one told us of a bus, champagne, wine, amazing caterers at a private homestead, claybird shooting, archery, horseriding partners, a band, playtoys for the kids costing $350 per head.

Another said: "I work at an amazing place. We've had approximately five different xmas parties throughout the organisation, each one attended (start at 11.30). We get to head home afterwards, normally about 2pm - we are also given a half day off for shopping - this isn't taken as leave plus we get an additional three days over the xmas break that aren't taken as leave, they're given to us."

But if you are suffering a Christmas crackdown, at least you know you're not alone.

Google, which in the run up to 2008 was famed for its lavish Christmas functions, is said to have this year thrown relatively sedate parties and banned plus-ones.

Bloggers reported even the most glamorous of companies including Hollywood studio Paramount and make-up magnates Estee Lauder turned to "austerity chic", cancelling them outright.

This year, US financial powerhouse Goldman Sachs, dubbed the "giant vampire squid of Wall Street", banned Christmas functions across all its worldwide officers to keep a low profile after making billions on the back of a US public bailout.

Mind you, Goldman employees probably won't feel too put out, seeing as the bank has set aside a record NZ$23 billion for worker bonuses this year, which translates to roughly NZ$963,000 for each employee.

- © Fairfax NZ News