The company holiday party, historically an opportunity to showcase your networking skills with people across the organization and let your personality shine, has changed in the hybrid and remote work world. As many employees across all levels of seniority develop a much more transactional relationship with work, the notion that socializing with coworkers outside of working hours, having a drink with the boss or attending a holiday party is fun is declining.
As organizations look to cut costs, authenticate culture and transition back into a pre-remote working environment, the role of company get-togethers, particularly holiday parties, is difficult to gauge. While these gatherings provide an opportunity for employees to let loose and develop personal relationships with coworkers, many employees would rather do anything else. According to new data from people analytics platform Visier, nearly two-thirds (64%) of employees said they have stopped attending company events after work hours, including the annual holiday party.
Reasons for sitting out
While increased stress around the holidays may be a fundamental cause of employees not wanting to attend parties, the reasons given in the survey were more specific. Reasons for skipping out on holiday parties included feelings that employees get enough socialization during the workday (36%), a desire to keep personal and professional life separate (33%) and a disinterest in spending time away from family and friends (28%).
Remote work and siloed sectors of organizations are also considerable factors, as 24% said they don’t feel connected to their coworkers. While the idea of plus-ones has been debated by business leaders, nearly a fifth (19%) said the inability to bring a partner to the holiday party is another reason for their lack of attendance.
The consistency of socializing with coworkers has also dramatically decreased, with gatherings now likely disrupting employees’ schedules rather than being a recurring or regular event. As the happy hour has largely gone extinct, nearly two-thirds (62%) of workers said they had fewer opportunities to connect with coworkers outside of work in 2023 than in 2022.
What employees want instead
Most employees (69%) want a bonus instead of a holiday party. As wages have mostly failed to keep up with inflation, and many companies have made visible efforts to cut costs, it’s likely in bad taste to host an over-the-top holiday party in the name of culture if layoffs, minimal raises or budget cuts have recently been implemented.
Though in-person employees’ interest in holiday parties was slightly higher than remote employees (34% versus 26%), hybrid employees were least likely (18%) to be interested in a company gathering. This reflects the growing importance of work-life balance for workers, many of whom are willing to trade socializing with coworkers — and the work culture benefits that come with it — for their well-being and personal relationships.
Generational breakdown
Gen-Z, the youngest generation in the workplace, is surprisingly one of the most likely groups interested in attending holiday parties. Early in their careers, these employees likely haven’t experienced the pre-pandemic holiday parties that older counterparts attended regularly, mostly without choice, for years. Now, it appears as if older generations are seeing a chance to bail on company gatherings in the name of work-life balance.
As reported in survey data from the job board Indeed, Gen-Z’s approach to work differs significantly from their more experienced peers, with differences extending beyond corporate gatherings. Indeed found younger workers are more comfortable discussing political views, medical backgrounds and cannabis use than older workers. They are also more likely to fit a trip to the gym (38%) or even a nap (21%) into the workday.
This approach, though different from the largely merit-based approach taken by older workers, makes the role of the holiday party in the eyes of Gen-Z much different. As this age group consumes less alcohol and has different standards for authenticity and meaningful workplace connections, companies with large numbers of younger employees may see better ROI on gatherings focused less on food and alcohol and more on experiences or activities.
It seems future business leaders in Gen-Z are pushing back on the narrative that their generation is socially inept. They want to showcase their networking skills at holiday parties more than most other generations, second only to millennials, who are also likely trying to advance their careers through networking and rubbing elbows after hours with leadership. Only 13% of the oldest generation, baby boomers, many of whom are still working due to the inability or lack of desire to retire, said they’d be interested in attending an after-work social activity.
