Those that have worked in an office setting know just how important it is to develop good chemistry between the employees and keep an upbeat morale in order to maintain a productive working environment.

And while a big part of this occurs naturally when working “in the trenches”, it’s always a good idea to encourage the employees to form stronger relationships both inside the office and even outside. That’s why it is very important for companies to regularly throw holiday parties that help people get to know each other in a non-work setting.

Why are holiday parties so vital?

There are countless benefits to having a company holiday party, but here are three that clearly show the direct benefits that the company receives:

It’s Good for Employee Morale

When people work in an office, they are not only exchanging their time and expertise for money, but also investing a significant part of their lives in the company’s success.

So it’s always good to let the employees have something to look forward to with their office buddies besides the weekend. A holiday party is a great place for employees to feel that they are not just random people getting together to work, but that they are actually friends.

Seemingly simple things like celebrating the holidays together, perhaps exchanging small gifts and just having some fun can carry through to an increase in productivity for a long time after the party.

It Shows the Employees You Care

When people look for a place to work, they usually don’t base their decision entirely on salary – yes, in the end money is a deciding factor, but people also want to know that they are going to a place that is going to treat them with respect and that will actually care about each individual.

A holiday party is one of those apparently simple gestures by the company that can form a very favorable opinion towards management – people love having certain “perks” that come as a result of working at a certain company, so an office party is a great way to reaffirm your image as a good place to work at.

Opportunity for Employees to Build Rapport with Higher Management

No matter how much executives would like to think differently, it’s impossible to have a great relationship with all of the employees – in the midst of working there will always be stressful situations, when difficult decisions will need to be made and thus feelings might get hurt.

However, even though there will always be a certain reserve between higher management and the employees, a holiday party can go a long way in improving the situation. Having an opportunity to see that the higher management folks are actually nice people, with similar interests and qualities, builds relationships between people of different positions in the company and helps understand that the person making the decisions is simply doing his job and is not trying to rub anyone the wrong way.

These personal relationships that can be developed during office holiday parties carry out to the office, where the employees become more motivated to meet the objectives set out by higher management and the executives might actually become more understanding towards the people under them as well.