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Five Strong Reasons to Consider an Office Christmas Party

Published November 25, 2022 (last updated on May 15, 2024) | Adam Wyatt - Copywriter and Content Creator


For many businesses, 2022 will be the first time in three years that COVID-19 hasn’t been a significant factor. This means hosting Christmas work events and parties with full fervour and enthusiasm. However, it has been a challenging year for many businesses and employers. You may wonder if it’s even worth hosting an office Christmas party. The answer is a resounding yes.

The idea is to use this opportunity to reflect on the year that has been and encourage your team to end the year on a high note. If planned efficiently and safely, it can be an excellent team-bonding tool.  

There are several benefits of hosting a Christmas work event.

Improves employee retention

Studies have shown that employees who felt their Christmas Party was a success were more likely to stay with the company for longer. Making the time and effort to celebrate your team and their hard work goes a long way toward making them feel appreciated. They feel included and respected.

Data has revealed that employees who had a great time at the Christmas party were 96% less likely to resign the following year. These parties and events allowed them to engage with the team informally, build interpersonal relationships, and network with their managers.

Builds team culture

We spend 40 hours or more in the office every week. If your working relationships are toxic or the team culture is unpalatable, then you will not be able to succeed or focus on work. Gallup  conducted a study about employee engagement and team culture that discovered that highly engaged business units achieve a 20% increase in sales. Simply put, a team culture that engages employees produces better results and improves productivity.

Employees with strong social ties with their co-workers are also likely to stay with the company longer.

Use the end-of-year party to build and improve your team culture. Christmas parties provide your employees with a chance to collaborate and connect on a personal level. If you have different departments, foster inter-departmental relationships or collaboration. Some opportunities to build team culture:

  • ‘Decorate your desk/area’ competition

  • A potluck lunch where employees bring different Christmas foods and snacks

  • Team activities and games

Christmas Party Duty of Care

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Performance recognition

Employers that recognise and value high-performing employees see better business outcomes. It’s the end of the year, the team has completed several projects, ticked off milestones, and worked hard to be in their roles. If you recognize this during office Christmas parties, it will motivate them. Public awards and recognition inspire employees to achieve more in the year ahead.

These awards don’t need to be monetary. They can recognize values, commitment, and attitudes.

Social networking

Christmas parties are a perfect way for employees to have fun. Having a good time at the office Christmas party can impact employee moods profoundly. It makes them happy, and happy employees are productive employees. They can also network socially with other employees, supervisors, and managers.

Nice way to end the year

Public holidays can be a tough time for businesses. It can get really busy leading to overworked and burnt-out employees. If you have an end-of-the-year- party or office Christmas party, this will be a positive note to end the year on. It will give your employees time off and reduce their stress.

Be merry and safe

While Christmas parties lead to employee engagement, you should remember that you have a duty of care toward your employees.

The Accident Compensation Corporation (ACC) sees an increase in accidents on Christmas Day related to Christmas trees, presents, lights, or decorations. ACC doesn’t keep specific figures about the rise in workplace accidents leading up to Christmas or office party incidents, but they do happen.

When it comes to Christmas parties, even if an event is held outside of working hours and the workplace, you can still be liable. You should specifically communicate all expected standards of behaviour to employees including responsible consumption of alcohol.

Avoid holiday headaches with Employsure

Employsure has worked with 30,000 business owners across Australia and New Zealand. We have helped employers like you manage employees and understand their duty of care. Call our 24/7 Advice Line today to get all your tricky questions answered.

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