Office holiday parties are back — and that's good news for Gen Z
Once upon a time, corporate bosses, associates, and interns alike would set aside their different titles and gather each December for drinks, dancing, and conversation. There would be gourmet dinners, chocolate fountains, DJs, and even live bands. For some, it was a night of merriment and splendor; for others, of awkward small talk, followed by deep regret.
Then the holiday party became endangered. In the wake of #MeToo in 2017, more professionals began rethinking the wisdom of a boozed-up night with their colleagues. The pandemic and remote work delivered a near death blow. In a 2020 survey of about 200 HR representatives by the executive-outplacement firm Challenger, Gray & Christmas, a mere 23% said they opted for seasonal celebrations, nearly three-quarters of which would be held virtually.
But as the return to offices continues, companies are slowly reinstituting holiday parties. Last year, nearly 65% of companies surveyed by Challenger, Gray, & Christmas said they planned to host in-person holiday parties, within sight of the 80% reported in 2016, before the advent of #MeToo. If plans pan out, this year could have before-times levels of corporate holiday cheer.
The return of the office holiday party could be a happier development than many jaded workers are likely inclined to presume. With two-thirds of the American white-collar workforce working remotely either some or all of the time, according to a USA Today survey conducted earlier this year, face time with colleagues and superiors is no longer a default feature of the 9-to-5. That might not be a big deal for everyone, but early-career workers stand to pay the steepest professional price for missing out on the kinds of networking and mentorship opportunities that are likelier to happen organically in a shared physical space. All the while, workers across the board are feeling increasingly lonely, overextended, and disengaged. They need something β anything β to celebrate.
In a work environment punctuated by uncertainty and isolation, it might be premature to let one's inner Scrooge have the final word on the tradition.
From Fezziwig's ball in "A Christmas Carol" to the power-suited backdrop of the 1988 Christmas Eve action thriller "Die Hard," the workplace holiday party has been a fixture of the cultural imagination for generations. But in the mid-20th century, the event garnered its enduring reputation for sloppiness and day-after regret. A 1948 Life magazine photo spread from a Christmas party thrown in the office of a Manhattan insurance brokerage depicts, among other modern-day HR violations, a pantless male executive dancing arm in arm with a young female stenographer and a pair of colleagues leaning in for a smooch beneath a bundle of mistletoe.
Somewhere along the way, festivities evolved from low-key gatherings held at the office to lavish affairs that might include gourmet meals, hired entertainment, and even international travel and accommodation on the boss' dime. The pandemic notwithstanding, the economic pendulum has largely dictated its tilt toward excess or restraint.
I've never experienced a company holiday party like it since.
As a Toronto-area DJ during the halcyon days of the late-'90s dot-com bubble, Baruch Labunski had a front-row seat to corporate-party splendor. "I went to many and saw a lot of crazy things," he said. He described being flown to DJ holiday parties in far-flung global destinations such as Bora Bora, Palawan, and Ibiza β and, on top of that, getting paid $50,000 to $100,000 per event. (When I asked how many holiday parties he booked in a typical season, he said only "many.") By the time the dot-com bubble burst and the demand for his services cooled, Labunski had tired himself out of the DJ booth and pivoted to a career in marketing.
Economic recovery in the mid-2000s spurred a holiday-party renaissance, only to be dashed once again in the 2008 recession. A few years later, Wall Street firms were reportedly back to enjoying hush-hush holiday festivities reminiscent of their heydays. The free-money firehose of the ZIRP era was in full force, and excess was back in style.
Danielle Kane, who was a reporter for a niche New York City financial-services publication between 2015 and 2017, said that one year her company flew the entire staff of 50 to 75 people to Berlin. "Hotels and flights were paid for, there was an experiential dinner at the Berlin TV Tower, and then they paid for everyone to get into a fancy club afterwards," she said. "It was a late night, and I've never experienced a company holiday party like it since."
For all their fun, these often cringe-inducing affairs earned a bad rap β one that may come to bite younger workers.
Despite some companies' largesse, the general workforce's enthusiasm for holiday parties has long been mixed. In a 2017 survey of American workers by Randstad, 90% of respondents said they'd rather receive bonuses or extra vacation days than attend a company holiday party. "The ideal situation," Constance Noonan Hadley, an organizational psychologist, told me, "is to offer activities that foster employee social health (such as a holiday party) without asking them to sacrifice their financial health (such as a bonus) or their mental health (such as time off)."
Companies squander the opportunity to make holiday gatherings meaningful in all sorts of small but critical ways. Hadley said the Christmas-specific focus of many company holiday parties could be alienating to workers who follow non-Christian religious traditions. Parties are often held at inconvenient times and places β too late on a weeknight for parents, in a location that has expensive parking or is hard to access. Holiday parties at big firms can also be loud, hot, and crowded, which makes it difficult to have meaningful conversations or meet new people.
Simply put, face time matters.
Well-planned company holiday parties, on the other hand, can be a boon to employees' overall work experience and even strengthen company culture. A study of workers at several German companies in 2019 concluded that parties could encourage social bonding, especially when employees' feedback steered the planning. The study suggests, for example, that icebreaker activities that get people from different parts of the organization talking help build camaraderie, despite the eye rolls they may initially provoke. Over time, that can contribute to a happier and more cohesive work environment.
For early-career workers, the benefits can be more pronounced. Rick Hermanns, the president and CEO of HireQuest, a global staffing company, said social events could help make up for the "intangible aspects of career growth and camaraderie between colleagues" that younger workers may miss out on when they're partly or fully remote. In a 2023 Adobe poll of more than 1,000 Gen Z workers at midsize and large US companies, 83% of respondents said a workplace mentor was crucial for their career, but only 52% said they had one. While holiday parties aren't the be-all and end-all of workplace networking, they provide a critical opening to build and fortify connections.
"When I look back at my early career in banking in Los Angeles, I appreciated the time I had to walk into a senior executive's office or grab a beer after work with colleagues," Hermanns said. "Those are the intangibles you can't quantify yet ultimately impact your career growth." Simply put, face time matters.
It makes sense that Gen Z and millennial workers would be more enthusiastic about workplace holiday get-togethers than their Gen X and baby-boomer counterparts. "Company leaders need to help Gen Z β as well as millennials, whose workplace experience was hugely disrupted by COVID β to build strong interpersonal workplace relationships," Hubert Palan, the CEO of the product-management company Productboard, told Business Insider last year.
Given that much of the global workforce feels lonely on the job, it's not just the youngest workers who need a social boost. A new study Hadley coauthored evaluating workplace loneliness and remedies found that the loneliest people at work were those who were offered the fewest social opportunities by their employer. "In fact, the number of social offerings provided was one of our most predictive variables in terms of whether someone was socially connected at work or not," she told me. Hadley also found that while fully remote work did seem to increase the risk of loneliness, it was less significant of a variable than whether a person was introverted or worked for an organization that held regular social activities for staffers.
The German study suggests that a holiday party can serve as the ritual capstone for these more routine coworker events, making year-end hobnobbing just a little extra special. While the ideal party activities will depend on an organization's culture, a few basic considerations β such as hosting the event somewhere besides the boring old office β go a long way. Elements of fun help too, whether they take the form of a themed photo booth, a creative dining experience, or, yes, a DJ.
A dash of festive foresight can make the difference between the raunchy affairs of yesteryear and a few hours of meaningful, PG-rated bonding between coworkers. "A nice holiday event gives people a break in their wallets and signals that the leaders value personal connections and socializing," Hadley said.
For a company's youngest workers, the benefits may last a professional lifetime.
Kelli MarΓa Korducki is a journalist whose work focuses on work, tech, and culture. She's based in New York City.