UK small businesses cut back on Christmas festivities

A new study has shown that UK SMEs are cutting back on festive activities this Christmas.

The research, commissioned by communication experts Pitney Bowes, has revealed that UK small businesses risk damaging staff morale by cutting back festive celebrations this year.

The independent study, carried out by YourSayPays, questioned 500 small companies across the UK and found that almost half (48%) of SME respondents are not planning a Christmas party this year and that 91% of businesses that are, will spend the same or less than last year.

Despite this, 63% did admit that cutting back or cancelling Christmas parties damage staff morale, and therefore productivity.

Phil McCabe Senior Policy Adviser at the Forum of Private Business, a leading small business body said, “Controlling costs is always important, but staff Christmas parties are a valuable way of showing recognition and appreciation of your employees.”

Thirty-five per cent of SMEs will be closing for Christmas, believing that their staff ‘deserve a good rest’.  However, A third of businesses (30%) are introducing new measures this year in an effort to run more efficiently but not shut down, such as having skeleton teams in place or key people on call 24/7.

Phil Hutchison, Pitney Bowes Tactical Marketing Director said, “Christmas is a great time to engage with staff and customers, especially when times are tough, and festive activities need not be expensive.

“In place of parties, companies can try other ways of showing their appreciation, such as more flexible working, relaxed dress codes or setting time aside for activities such as a festive quiz.”

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