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End-of-year parties and celebrations have become casualties of rising costs, says Robert Half.
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One-in-three businesses cancels Christmas
21 December 2022
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One-in-three businesses has cancelled Christmas according to recruitment firm Robert Half, and mid-sized firms are the worst culprits with more than half abandoning end-of-year celebrations.
Director of Robert Half Australia Andrew Brushfield said while businesses were looking to save money, cutting events such as Christmas parties could harm employee morale and impact both retention rates and the ability to attract new talent.
“Rising inflation is having a negative impact on Australian workers’ employee experience, with some companies cutting costs on events and experiences that contribute to a strong company culture,” said Mr Brushfield.
“The idea of having a premium corporate culture is becoming one of the biggest attraction and retention strategies amid a tight labour market, with candidates paying more attention to what their experience would look like if they took a job offer from a company.”
“Cutting highly-valued social events like Christmas parties can leave a sour taste in employees’ mouths as the year ends, potentially putting a negative light on the hard work they have done at a time when achievements are usually celebrated with peers.”
This impact on events through cost-cutting measures comes when research from Robert Half found company culture was ranked as one of the most important elements for employees.
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The research found it was ranked fourth with 27 per cent voting for it as the most crucial part of a workplace, only behind remuneration with 52 per cent, flexible working conditions with 46 per cent, and career progression at 27 per cent.
“During the interview process candidates are inquiring about recognition efforts, social events, and company culture initiatives as a way to evaluate the quality of a job offer,” said Mr Brushfield.
“Company culture is one of the main factors that entices existing employees to stay with their employer. Before taking similar actions in the new year, businesses should consider other ways of managing costs.
“By understanding the qualities that candidates prioritise when assessing and choosing employers in 2022, hiring managers can create a strong company culture while managing costs during a time where cost of living is soaring.”
Robert Half's research also found that while social events played a crucial role in developing company culture other factors also contributed to it.
This included employees feeling appreciated and recognised for their efforts, at 50 per cent, being trusted to do their job regardless of where they work, at 45 per cent, and being offered flexibility at 40 per cent.
The research was a part of a study developed by Robert Half that involved 300 hiring managers, including 100 CFOs and 100 CIOs from companies across Australia.
The firm also implemented a study that surveyed 1,019 office workers across Australia.
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