Last night ActivEngage had it’s annual Holiday Party at Ceviche. We had an open bar, hand passed appetizers, and a great DJ. By 7PM employees created a break dancing circle and one later told me that he ripped his pants doing a whirlwind move!

Why am I telling you this? Because Holiday Parties are good for company morale. At this party there were no divisions because of positions or locations in the office, everyone was mingling like one big family. Some argue that a bonus would be better than a party, to those people I say BAH HUMBUG. Those bonuses remind me of the often quoted business-owner motto, “I don’t need to say thank you, that’s what I pay you for.” Throwing money in someone’s direction might be appreciated, but it feels a lot less personal and I’m not alone in my thinking, “A party at the end of the year is a good way for an employer to show its appreciation to employees,”  Bob Kelleher, CEO of The Employee Engagement Group

I won’t stop there either, here are some reasons why having a Holiday Party for your employees is great for your company.

Relationships

• Office parties affect morale in a positive way by helping to build relationships. Managers have the chance to spend time socially with people who work for them, which can help the employees see them more clearly as human beings rather than bosses. Employees are able to interact socially with people they may not know well, which can create bonds between members of different teams within the organization. Morale is positively affected by interacting socially because people need to feel that they are part of a team.

Builds Trust

• Trust is established when an organization follows through on its decision to keep social events in place, even during tough economic times. It shows employees that the company genuinely cares about the happiness of the people who work their, which can help build morale. People have a basic need for trust in relationships, which is satisfied when an employer shows good faith in its employees as well as concern for their happiness and well-being.

Motivation for Next Year

• Parties are a helpful way for employers to acknowledge the hard work their employees have done for them over the year. Whether giving out awards, making small speeches or simply buying everyone some food and beverages, the acknowledgment is happening. Employees need to feel that they are not expendable, and an office party is one way to help with this. Being acknowledged raises employees' self-esteem, which in turn raises morale because it makes them feel appreciated and happy.

Do you have an annual company party? If so, share the reasons why you have this party in the comments section below!