October 31, 2018

Is it a Party Economy?

Is your company’s year-end function on the ‘Cost Cutting’ list this year? With South Africa’s GDP growth rate continuing to decline, you wouldn’t be blamed for looking at ways to cut back. However, with any cutbacks come unforeseen threats and sometimes the long-term effects aren’t always worth the marginal savings.

On the surface, a year-end function may appear to be a meal or team building event with a few drinks and some speeches. It’s fun and sets a good tone to end off the year. Beneath the surface of a year-end function lies unspoken human truths that have a marked effect on employee sentiment and corporate culture. To hold a year-end function is seen as recognition of your employees and that recognition has far reaching effects that could far outweigh a quick saving towards the end of the year.

In a recent research study by Deloitte and Touché, it was found that businesses that recognise their employees show 14% more productivity than those who don’t.

This speaks to the psychology of human behavior – we feel good when we receive recognition and acknowledgement, and this motivates us to be more efficient in an effort to perpetuate the state of feeling valuable.

The Deloitte and Touché study further states that this boost in productivity due to employee engagement could be attributed to a 22% spike in profitability, which is nothing to be scoffed at. This study also reveals that 68% of organisations who show their employees appreciation, reported a direct positive impact on staff retention.

A year-end function might seem like a fairly small gesture of appreciation to some, but it’s been proven to mean a lot according to surveyed employees. Ending the year on a positive note inspires staff and motivates them going forward into the new year. This motivation could make a difference on your bottom line.

So, if you’re considering dropping your year-end function with the goal of saving during these rocky economic times, it’s worth considering the impact on the larger ecosystem of your business. This gesture could kindle the fire your employees need to drive your business through the headwinds.

Tips for getting more bank for your buck at this year’s year-end function:

  1. Make insight gathering your mission. These get-togethers are less formal and can lead to open conversations you usually wouldn’t be included in. Your staff are on the ground and are often aware of opportunities and blind spots that you aren’t.
  2. Get to know the people you work with. This let-your-hair-down affair offers the opportunity to get to know employees on a personal level, allowing you to acknowledge their individual efforts within the company. This helps greatly when you require them to go the extra mile.
  3. Don’t be shy, celebrate the wins! Part of inspiring your staff is reminding them that they work for an awesome company! Talk about big account wins and how they all made it happen on every level. Ensure them that the company has a future and that they are part of it.
  4. You can throw a great event on a tight budget! With years of experience in the events industry, Black Snow has found that it’s often the smaller budgets that force the most creativity and innovative thinking around events. A good party comes in all shapes and sizes!

What to know more? Contact Black Snow on 086 011 0063 or email enquiry@blacksnow.co.za

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