Holiday parties — loved by some and dreaded by others — are one of the few opportunities where a company can inspire many people from the organization to join under one roof. It is a mixture of decision points: theme, venue, service, culture, and of course, cost.
CFOs and business leaders are tasked with balancing these factors when it comes time to decide how to invest in their organizational culture. Is a holiday party worth the time investment and the price tag? Although CFOs’ thoughts differ on the role executives should play in decision-making, the idea of an event that embodies company culture in a fun, authentic, and productive way is something they can get behind.
Plan the Party
CFOs who are cost-conscious about the event price tag should start planning ahead. According to Anthony Rose, CFO of Kapitus, this is a way to ensure budgeting, manage costs, and stay proactive so you don't overspend at the last minute or send the wrong message about your company's financial situation.
"The absolute best way to approach [budgeting] is to figure out how much you think you're going to spend a year out from the party and accrue every month leading to the party," said Rose. "And, be very clear with the holiday party planners that the budget is ‘X’ and that is it, so make it happen.
“I also think you have to balance the intentionality of bringing people together at a holiday party with the need to be disciplined on spend, especially in a time like this with a great deal of economic uncertainty. It's tough to have a swanky soiree, and then a few months later deliver a message that bonuses will be flat to last year, as an example. It sends a very mixed message and one that I've found employees don't necessarily appreciate."
Leadership Authenticity and Party Professionalism
As happy hours have changed in a post-pandemic working environment, for leaders and younger professionals alike, this may be a first-time holiday party experience in 2023. Executives have a difficult line to balance between having fun and still being an embodiment of the organization. No CFO wants to be viewed as uptight at a company social event, but it's just as bad as being the CFO who makes headline news for bad decisions.
"I think as a CFO, it's important to establish that you are a leader first and a friend second," said Chris Ortega, a fractional CFO and CEO of consulting firm Fresh FP&A. "Go have a great time, take pictures in your photo booths, have lots of laughs, enjoy dinner, have good conversations, but remember, people are looking at you for leadership. It's a super delicate balance because the last thing anyone wants to do at a social event like that is to come off rigid or too wild."
Ortega uses the opportunity to expand his connection points. "I have used holiday parties as a way to interact with people I don't interact with on a daily basis. Whether it's sales or another area of the company, I want those people to leave the party going 'Wow, even though Chris is our CFO, I can still have a genuine conversation with him'."
For others, professionalism and authenticity is subjective. According to Premier Claims' CFO Melissa Hurrington, just because a holiday party is taking place under the guise of professionalism doesn't mean you can't enjoy the experience more than you would at other work events, as long as that's who you are during normal working hours.
"I choose to operate in my day-to-day as the real authentic me and ensure I am approachable," said Hurrington. "So that does not change at the holiday party. The real me knows every single word to that song playing in the background and I refuse to pretend like I don't."
"I do, however, understand the intention of the party is to make sure our staff feels appreciated and valued, so I do take my role as host seriously, which does in fact mean I abstain from drinking."
Spouses and Partners: The Plus-One Conundrum
Bringing a plus one, presumably a spouse to a holiday party can be a tricky subject. While some significant others feel they have a place at the party because of the role they play in the employee's life, others may think the plus one is distracting and takes away from the experience and opportunity for relationship building.
"I choose to operate in my day-to-day as the real authentic me ... The real me knows every single word to that song playing in the background and I refuse to pretend like I don't."
Melissa Hurrington
CFO, Premier Claims
"I think it's so important for people to get together with their plus ones," said Hurrington. "I am fully aware of what a pivotal role the spouse plays in the employee experience. The reality is they go home to that support person on good days and more importantly on bad ones. So is that spouse going to talk them off the ledge or push them over?"
However, others don't agree. "I am not a 'spouse at the holiday party' type of guy," said Michael Tannenbaum, COO and former CFO of Brex. "I've just seen so many holiday parties go bad. Maybe it's the risk management side of me, but I think the upside is lower than the downside.”
“It's nice to celebrate with your spouse, it's nice to dress up, it's nice to feel praise [from your spouse], but it's also nice to ride ponies, right? I'm a fan of keeping it simple and work [people] only," Tannenbaum said.
Rose also agrees with Tannenbaum, but from a different perspective. Aside from the risk management factor, he believes the holiday party should be a time when employees get to know each other and what makes each person unique and good at their jobs, as opposed to spending the whole time introducing their significant others to co-workers.
"Getting employees together helps to break down barriers, increase connectivity, and reinforce affiliation ... Done right, a holiday party has a high ROI and for that reason, I feel it's best to leave it for employees only."
Anthony Rose
CFO, Kapitus
"I don't personally believe that employees should bring spouses to a company holiday party. At our company, given we have a hybrid and distributed workforce, any time we can get our employees together is a benefit. Getting employees together helps to break down barriers, increase connectivity, and reinforce affiliation with the company," said Rose.
"Given we are not in a central office together, events like a holiday party allow us to bring disparate groups together and hopefully create bonds that will naturally flow into the workplace. Done right, a holiday party has a high ROI and for that reason, I feel it's best to leave it for employees only."