What makes a company Christmas party good? Research identifies key ingredients for success

Office Christmas parties are often viewed as a chance for employees to unwind, connect, and celebrate the year’s achievements. However, the success of these events can vary greatly depending on how they are organized and experienced. In a study published in Scientific Reports, Hannes Zacher from Leipzig University explored what factors contribute to a successful company Christmas party and how they influence employees’ happiness.

The annual company Christmas party is more than just an end-of-year celebration; it serves as a ritual that reflects the culture, values, and interpersonal dynamics within an organization. While office parties are common, surprisingly little research has investigated their impact on employee happiness or workplace culture. This gap motivated Zacher, as he aimed to identify factors that predict employee satisfaction and emotional experiences during such events.

“Many people, including myself and my colleagues, attend a company holiday party every year,” Zacher explained. “As a psychologist studying work and organization, I wanted to find out which features of these annual events are associated with employee happiness. Surprisingly, there was very little research on this topic, so I conducted my own study with several hundred employees.”

For employees, the Christmas party is a rare opportunity to interact outside the typical work environment, potentially fostering stronger bonds, improving morale, and providing a sense of recognition. However, poorly planned events can have the opposite effect, creating discomfort or dissatisfaction. Understanding what makes a Christmas party enjoyable can help companies plan events that strengthen team relationships and contribute to a positive work atmosphere.

To determine what makes a Christmas party successful, Zacher surveyed 359 employees in Germany shortly after the 2018 holiday season. Participants represented a diverse range of ages, salary levels, and industries, ensuring a broad perspective on the topic. The survey included questions about their recent company Christmas party, such as its location, activities, costs, and overall atmosphere.

Participants rated their satisfaction and emotional responses to the party, including positive emotions (e.g., excitement, relaxation) and negative emotions (e.g., frustration, nervousness). Zacher also collected information on personal characteristics, such as employees’ involvement in planning the party, their attitudes toward Christmas, and their identification with the organization. Organizational factors, such as company culture, were also assessed.

One of the study’s key findings was the role of employee characteristics, particularly organizational identification and involvement in party planning. Employees who felt a strong sense of connection to their organization—described as organizational identification—were more likely to experience positive emotions during the Christmas party. This bond fostered feelings of excitement and enthusiasm, likely because employees viewed the event as a reflection of their own organizational pride and identity.

Interestingly, employees who were actively involved in planning the Christmas party also reported higher levels of high-energy positive emotions, such as excitement. Being part of the organizing process may have increased their sense of ownership and engagement, contributing to a more rewarding experience.

However, other personal characteristics, such as religious affiliation and general attitudes toward Christmas, did not significantly influence happiness. This finding suggests that an employee’s relationship with the organization plays a far greater role in shaping their party experience than personal beliefs or preferences.

The workplace’s organizational culture emerged as another significant factor in determining employees’ happiness during the event. The study specifically examined two cultural models: the human relations culture and the internal process culture.

A human relations culture, which emphasizes teamwork, flexibility, and employee morale, was strongly linked to higher satisfaction with the Christmas party. Employees in these organizations felt more positive and less dissatisfied with the event, suggesting that a supportive and cohesive environment contributes to a more enjoyable experience. In workplaces where teamwork and morale are prioritized, the Christmas party may serve as a natural extension of the existing organizational values, fostering feelings of inclusion and camaraderie.

The internal process culture, characterized by stability and continuity, had a more limited but still positive effect on happiness. Specifically, employees in these environments reported greater feelings of low-energy positive emotions, such as calmness and relaxation, likely due to the structured and predictable nature of the event.

In contrast, organizations that emphasized rigid rules, excessive control, or a competitive atmosphere (characteristics of other cultural models like the rational goal culture) did not significantly contribute to employee happiness during the party. This finding highlights the importance of creating a workplace culture that values connection and emotional well-being, especially during celebratory events.

The most influential predictors of happiness were the specific features of the Christmas party itself. These findings provide practical insights into what companies can do—or avoid—to ensure their parties are successful.

Positive factors:
Certain elements of the party significantly enhanced employees’ satisfaction and positive emotions:

• Fun activities: Events that included engaging activities, such as games, karaoke, or team-based challenges, were strongly associated with higher satisfaction. These activities encouraged employees to relax, bond with colleagues, and enjoy moments of laughter and camaraderie outside the typical workplace setting.
• Speeches: A well-delivered speech by a manager or leader significantly reduced dissatisfaction and negative emotions among employees. These speeches often highlighted organizational achievements, expressed gratitude, or set a positive tone for the future. Employees appreciated this recognition, which fostered a sense of inclusion and appreciation.
• Beverage options: Providing a variety of both alcoholic and non-alcoholic beverages was linked to a more inclusive and enjoyable environment. Employees valued having choices, as it avoided creating pressure to drink alcohol and ensured that everyone could comfortably participate.
• Food quality: Interestingly, while buffet-style food did not strongly impact happiness, parties that offered à la carte dining were associated with higher satisfaction. Personalized meal options likely elevated the experience by making the event feel more thoughtful and tailored to attendees’ preferences.
• Music: Background music or a live band contributed to a more enjoyable atmosphere, with employees reporting higher satisfaction when music was present. Music added to the festive mood, encouraging social interactions and, in some cases, dancing.
• External location: Christmas parties held outside the workplace premises were linked to slightly higher satisfaction. An external venue provided a change of scenery, signaling a break from the work routine and adding a sense of novelty to the celebration.

Negative factors:
The study also identified several elements that dampened employees’ experiences, leading to dissatisfaction and negative emotions:

• Heavy drinking: Parties where employees consumed alcohol excessively (five or more drinks per person) were strongly associated with dissatisfaction and increased stress. While moderate drinking contributed to a lively atmosphere, heavy consumption often led to inappropriate behavior and awkward situations, undermining the festive tone.
• Inappropriate behavior: One of the most impactful negative factors was inappropriate conduct, particularly behavior such as sexualized comments or unwanted advances. This type of behavior, whether from colleagues or supervisors, heightened employees’ feelings of discomfort, frustration, and embarrassment. It not only spoiled the party atmosphere but also damaged trust and relationships within the team.
• Excessive formality: Events with rigid expectations, overly structured schedules, or formal behavior requirements were associated with lower satisfaction. Employees preferred parties that were relaxed and informal, where they could interact more naturally and genuinely enjoy the celebration.

“The study suggests how to design a successful company holiday party,” Zacher told PsyPost, outlining seven key elements: “1) have a positive company culture to start with, 2) host it off-site, 3) include activities, 4) keep it informal, 5) incorporate symbolism that ties it back to the organization’s mission and values, 6) provide drinks, but 7) avoid heavy drinking.”

While this study provides valuable insights, it does have some limitations. First, the findings are based on self-reported data, which may include biases in how employees recall or interpret their experiences. Future research could include observational data or input from multiple sources, such as managers and coworkers. Second, the study was conducted in Germany, so cultural factors may influence the generalizability of the results to other countries.

Looking ahead, Zacher is exploring new dimensions of holiday party dynamics. “I am currently looking into the question of who looks forward to, attends, and enjoys company holiday parties—that is, how people’s personality relates to their experience and behavior related to this holiday ritual,” he said.

The study, “The company Christmas party and employee happiness,” was published January 07, 2023.