Christmas Party Cancelled - Beware of Short term gains! Good staff are hard to find!
The Show Must Go On
When Business Is Down Staff Morale Must Stay Up Says Christmas Connections
The shadow of Ebenezer is well and truly upon us it seems. Apparently in the City the traditional staff Christmas Party has been cancelled or ominously restricted, which sounds very miserable indeed.
According to a recent article posted on The Times Online , several of the banks affected by the credit crunch are not paying for staff Christmas parties this year, while others are reducing the amount they will spend.
Christmas Parties - The Statistics
In addition, only 77 per cent of private sector companies will provide a Christmas party or lunch next month, down from 84 per cent in 2007, while only 67 per cent of manufacturing companies are holding Christmas celebrations, according to the Chartered Institute of Personnel and Development (CIPD).
It seems that the captains of industry have decided that in these grey days, we should all be models of sobriety, but this could be a false economy, suggests Justin Sayers, MD of events management company Christmas Connections .
"There is no doubt that the global financial crisis is biting hard, " says Sayers, "Due to the downturn staff are working harder. They may be working longer hours due to cut backs or in a bid to prove their worth in an uncertain climate. Let's not forget that businesses are made up of people, and when it comes down to it, the best assets of any company are the people that work for it, therefore it's imperative to keep staff morale high, to show staff that they are valued. After all a motivated workforce can make the difference between a company that flies and one that fails. "
Christmas Connections part of the Connections Group of companies that specialises in stag and hen weekends , corporate teambuilding, corporate events, hospitality and entertainment offers a whole host of Corporate Christmas Party events both off-the-shelf packages and bespoke parties.
"While there are reports that the City is cancelling Christmas Party events, our experience here at Christmas Connections is a 200 per cent growth in our Christmas Corporate offerings. There are ways of ensuring that Christmas parties can be cost effective. We are noticing a trend towards 'off the shelf' shared party packages last year for example, the most popular themed party events were ABBA and classic James Bond . We are always adding new parties to our portfolio such as the absolutely stunning Nostravia, a Russian themed party that is jaw dropping fabulous.
"These parties are hugely price competitive because they are shared. The scale of these parties, the décor and the food is a true extravaganza, and they can be so because the costs are shared out, " says Sayers.
"There are a number of ways that companies can watch their spend on Christmas parties looking at packages is one way, and then exploring active parties such as treasure hunts and The Apprentice style teambuilding exercises where money goes to charity are just other price competitive ideas which bring a new dynamic to the way that businesses reward staff at Christmas time.
Giving the government your Christmas Party this Year - Use it or Lose it!
"It's also prudent to remember that businesses planning to host staff parties need to keep a close eye on costs to avoid extra tax and national insurance (NIC) payment, " adds Sayers. "For a Christmas party to be tax-free, it must be open to all staff and only up to £150 can be spent on each employee . Exceeding this limit will mean that the whole amount spent on the party will become liable to income tax and NIC payments. Employers who pay for more than one event during the year have to calculate the combined costs of all the events. If the combined total is over £150 per head, then tax liabilities will arise. The £150 limit includes every single cost associated with the event including VAT and it is important to remember that £150 is not an allowance set against an amount that exceeds that figure. "
For free advice on organising your Christmas Party in London or the South please feel free to call, we love to talk!
Bespoke, Shared and Themed Christmas Venues and Events
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