Wednesday 13 May 2009

Cutting back on Company Events hampers Employee Commitment.

Almost 2/3 of all companies in Europe are cutting back on company events. This action is not so effective and reduces employees’ commitment to their company. HR executives should take into account not only the likely effectiveness of their actions, but also their probable impact on employee commitment. A crucial test of a company’s culture is how it treats its employees in bad times. Companies should be careful about going after the so-called quick hits or low hanging fruit without recognizing the full consequence.

Yesterday we visited a major company and global player in The Netherlands. It was refreshing to see that in spite of the recession and negative results, this company has recently published its new plans for company events for the year to come. It goes without saying that the company mentions the bad times and asks for understanding that not all events are continued, but company culture enforcing actions like Santa Claus parties for the children of employees, the family summer event, a spinning marathon, and the annual meetings for the retired employees will be continued as usual. The most foolish cost cutting action seen in another company was to take away personal e-mail addresses…

Let us know if you have seen even more uncomprehensible actions and examples in your own networks.

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