Warning to 'Grinch' bosses

Scrooge-like employers who don't get the importance of Christmas gift-giving and other festive gestures may find themselves scrounging around for staff in the New Year.

"If you don't give, you run the risk of being seen as an ungenerous organisation. Giving employees something at Christmas is expected," says James Brooke, principal for HR consulting and recruitment firm Gaulter Russell.

Gaulter Russell, who employs 35 recruitment and administration people, isn't taking any chances. The firm holds an annual Christmas party, a separate Christmas party with Santa for staff's children, gives Christmas gifts and allows staff a half day off to catch up on their Christmas shopping.

"Time off is usually preferred to a gimmicky gift. But we do everything. As a smaller organisation, we put a lot of thought into [Christmas]," says Brooke.

Brooke says while small companies tend to have less money to splurge on Christmas, they often celebrate Christmas more successfully than larger organisations because events don't need to be 'departmentalised'.

"Very few large organistions would have a company-wide Christmas party; one exception is Vodafone," says Brooke.

Neil Porteous, human resource director for Vodafone New Zealand says Vodafone is egalitarian by culture and likes to celebrate successes and events as one organisation.

"The Christmas party is aligned to our internal brand - fun is one of our values - and provides an experiential rather than tangible reward. Consequently it has become a very important part of our culture and has a significant influence on how people feel about working at Vodafone," says Porteous.

But what ever happened to big fat Christmas cash bonuses? These are in decline as a well established HR trend to reward employees in other ways continues, says Brook.

He says some organisations use Christmas to impart positive aspects of their employment brand - for example it is increasingly common for companies to hold a separate Christmas Party for children to reinforce a family-friendly image. Larger organisations are also less likely to provide cash bonuses at Christmas if their financial year doesn't match the calendar year.

However, large organisations with an incongruous financial year who decide not to reward employees at Christmas are unlikely to get away with an explanation from the CFO - particularly if the mid-year profit was a healthy one.

Telecom New Zealand, which has a financial year ending 30 June, posts healthy profits and does not plan on being labelled a Scrooge. Molli Hoos, internal communications executive for Telecom says Telecom runs a "Festive Cheer" programme in November and December that includes a photo and video competition, gifts and per-person allowances towards team Christmas parties.

Permanent and fixed term Telecom employees in New Zealand and Australia also receive a leisure-themed gift which is distributed with a card from CEO Theresa Gattung. Telecom also makes a charity donation, with the charity voted for by employees, says Hoos.

Considering their size, small businesses may be more inclined to pay employees a cash bonus at Christmas. One example is brand strategy firm Scenario, whose staff receives cash and a gift at Christmas, along with an invitation to a Christmas event. John Varcoe, director for Scenario, says the cash is allocated in proportion to the time the person has spent with the company and limited to those who work full time.

"We don't really look at it in terms of the benefits it might deliver. It's not an incentive programme - that wouldn't sit well with us at Christmas. I'm sure our team appreciates the extra cash and recognises the event is a sincere expression of our appreciation," says Varcoe.

He says this year Scenario's two offices met in Hawkes Bay, stayed in beach front properties, wined and dined, visited the Gannet Colony and vineyards, swam and played games.

When asked, most corporate gift givers say there are no measurable business benefits attached to giving gifts and rewards to employees at Christmas time, but it's logical to assume many employees expect them and not giving is likely to have a negative effect on an employer's employment brand.

More optimistically, Christmas goodwill may encourage staff retention and reciprocal goodwill among sentimental employees. If this sounds ideological, one long-tenure ASB bank employee says when restlessness strikes and another job looks appealing, the bank's Christmas giving makes a difference.

"I enjoy my job, there's just an element of restlessness after working here for so many years. But when I start thinking of other options I think I'll just wait and see what the Christmas gift is. Suddenly I'm into another year and have forgotten about wanting a change," says the employee.

Greg McAllister, head of human resources for the bank will be pleased to hear that. He says in addition to team functions and decorating, each employee receives the same themed gift, which is kept a surprise and has an average retail price of between $80 and $100.

"It's become a bit of a tradition that [former CEO] Ralph Norris started. His view was that if you are going to give gifts don't be measly about it because that will shine through and then you'll look more the Grinch than ever," says McAllister.


Returned with thanks

When might receiving a Christmas gift be unethical? According to the organisations we spoke to, if a significant gift arrives from a supplier or business partner, receiving it may create a psychological obligation on the part of the receiver to do business with the gift giver in the future - and for some employers, that's just not on.

Gaulter Russell's James Brooke says his organisation sends key customer Christmas gifts, and the receiver's falls into three categories: those who keep the gifts and have no opinion on whether they should or not; those who pool all corporate gifts from suppliers and put it into a staff draw or charity auction; and those who politely return the gift.

"The latter usually happens with companies who have to follow a global policy of not receiving gifts or invitations to events under any circumstances; this means we literally can't take them to lunch," says Brooke.

He says from the givers' perspective, business-to-business gifts are not typically designed to create obligation, but to thank a loyal customer for a year's custom.

Vodafone's Porteous says gifts received from suppliers and vendors are placed into a draw and auctioned off for the charity voted for by staff.

"Not only does it make things fairer for everyone at Vodafone but it also helps us, together, make a difference in our community," he says.

An employee of a large American-owned organisation says his employer has a strict ethical policy to return gifts from suppliers and customers. The employee says this can create unrest among staff at Christmas because they feel they are entitled to receive the gifts.

Wise employers will develop a policy around receiving Christmas gifts from external sources.