Workplace Organization

The holiday season is coming and with it, the party season opens up. Whether you're gearing up for a festive Christmas gathering or ringing in the New Year, a well-planned holiday party can leave a lasting impression and be a highlight that employees talk about for months

So, how do you ensure your holiday party is one to remember?

This guide will walk you through key steps and offer 27 creative ideas to help you choose the perfect holiday party that fits your company culture.

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3 Key Steps To Prepare For Your Holiday Party

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Holiday parties aren’t a cookie-cutter thing; you'll need to consider your company's unique culture when planning an employee holiday party. A quirky, themed event might be perfect for a young, innovative tech startup in San Francisco but it may not resonate with a traditional company in the Midwest whose employees may prefer a more traditional, cozy gathering. It’s important to tailor your party to your organization’s vibe.

Culture matters heavily, so make sure that your holiday party idea aligns with that. If you’re stuck figuring out which idea works best for your company culture, look at your brand. With it, you can see how your company presents itself to the world and what kind of people it attracts. This will tell you how to proceed. 

For example, the clothing company Patagonia is all about environmentalism and saving the planet Earth. So a party idea that would go against that or create unnecessary trash isn’t the best one. 

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To ensure your party idea is a hit, here are three critical steps to get you started:

• Plan early. Don’t wait until the last minute! Starting early ensures that all details are well thought out and executed smoothly. A hastily thrown-together event is noticeable, and it’s much easier to avoid last-minute stress by giving yourself plenty of time to plan.

• Get the budget. Once the plan for the holiday party is ready, you need to get budget approval. It doesn’t matter how cost-effective your holiday party idea is, you still need some funds. Get this squared away early so you can plan within your means, knowing what kind of party is feasible.

• Prepare logistics. The plan’s set. The budget’s there. Now, it’s time to prepare all the logistics so that the party really shines. If you’re having a wine-tasting night, book a sommelier well in advance. If it’s a game night, make sure all games and supplies are ready to go. Proper logistics are essential for a smooth, enjoyable event.

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Now that the prep work is done, it’s time to dive into some fun and festive ideas!

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The Ultimate Employee Holiday Party Ideas

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Remember that the most important thing is for all the employees at the party to have a good time. To ensure that they look forward to this enjoyable time, we drafted the following 27 ideas for you to pick from. Whether your team loves games, food, or a more laid-back atmosphere, you’re sure to find something that fits your team.

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1. Christmas Karaoke

A karaoke night can be such a crowd-pleaser. Rent a machine earlier or set up a do-it-yourself karaoke using office technology, load up a mix of holiday hits and classic songs, and encourage employees to belt out their favorite tunes. To keep things fair, just make sure that you limit people to only one song at a time to avoid anyone hogging the mic.

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2. Cookie Decoration Night

Bring out everyone’s creative side with a cookie decorating event. The best thing about cookie decoration is that no matter what mistakes you make decorating, you can still “eat your mistakes.” Set up stations with cookies, icing, sprinkles, and other fun toppings. Make sure that you prepare enough open space in advance so that everyone can participate in the activity. In the end, you can have people present their cookies and even give an award!

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3. Movie night

Prepare a projector, set up chairs, get plenty of popcorn, put an awesome movie in, and enjoy your time with a holiday party movie night. The one thing you can do beforehand is set a poll with a couple of movies and let employees vote in advance. This will ensure you play a crowd pleaser of a movie.

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4. Virtual Holiday Party

Remote companies require remote solutions. With a virtual holiday party, you’re connecting everyone to a single video chat and having a blast. Keep the energy high with activities like virtual Christmas tree decorating, sharing festive recipes, or a quick game of holiday-themed trivia so that people can stay engaged while they’re on the call. 

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5. Virtual Party Trivia Quiz

A virtual party can really benefit from a trivia quiz. Prepare the questions, topics (like holiday traditions, company history, or fun facts about employees), and themes ahead of time, explain the rules to the employees, and let them know what the reward for winning the quiz is. This will create a healthy competitive atmosphere and will lead to a great night. 

6. Casino Night

Having a casino night party can be something small, like having one table for card games such as Blackjack or Texas Holdem. Or you can create a casino feel, with roulette games, card games, and even find machine slots so that people can truly feel immersed in the casino feel. If you’re going for the second option, make sure that you plan the logistics correctly. If you don’t have one large space where you can put everything, you can have one game per room and get a similar feeling. For a true casino atmosphere, you can get card dealers that would dress up like it’s a real casino and add to the excitement with prizes for those with the most “winnings.”

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7. Christmas Around The World

Explore holiday traditions from different cultures by hosting a “Christmas Around the World” theme. Some cultures have bonfires, others swim in cold water, and some write real letters to Santa. You could decorate rooms to represent various countries, like a German Christmas market or a Swedish Saint Lucia’s Day. Consider incorporating traditional foods, music, and even games from each culture.

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8. Themed Game Show

There are so many different game shows that you can use to create a really great holiday party. Try recreating a popular game show like Family Feud, Jeopardy, or The Price is Right with holiday twists. You can even create your own variation if you’re not satisfied with how regular game shows function. The most important thing is to pick the right themes and topics for your people. Craft questions or themes around the season, your industry, or your employees for an extra personal touch. Make sure that the themes match the interests of the employees and you’ll have a great night.

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9. Santa Claus And Krampus Party

You can use the Santa Claus and Krampus Party in multiple variations. You can have someone play Santa, handing out small gifts or holiday “tasks", and another person plays Krampus and gives humorous “punishments” to the naughty. This is a fun way to bring some holiday spirit while getting everyone laughing.

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10. Costume Party

A costume party can be a great way for people to unite around a common theme, let loose and show their creativity. You can spin a costume party any way you like, going from decade parties (20s, 80s, 00s), characters from a popular TV show or a movie (Harry Potter, Lord of The Rings, The Office, etc.), or let everyone choose their favorite holiday-inspired look.

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11. Murder Mystery

There’s been a murder and your employees need to solve it! You don’t need to have the game Cluedo to do a murder mystery, you can find plenty of free or inexpensive murder mystery scenarios online. People love murder mysteries because they’re engaging, last for enough time, and really push people to become true detectives. 

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12. Ugly Sweater 

Everyone has an ugly Christmas sweater hanging at the back of the closet. And that’s the point. Encourage employees to wear their tackiest, most outrageous holiday sweaters and let them compete for titles like “Most Creative” or “Ugliest Sweater.” The best thing about the Ugly Sweater party is that the clothes usually have a story behind them so it really gets interesting when people start sharing the story behind the sweater. 

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13. Bingo Night

Bingo is all about playing games and winning rewards. A bingo night can really be a fun activity for your office holiday party. Have someone charismatic host the event and include fun prizes for the winners. Customize the bingo cards with holiday images or office-related themes for an extra festive touch.

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14. Photo Booth

Photo booths are, in general, really fun by themselves. When you set one up as an employee holiday party, make sure that the booth is in a visible place so that people can take pictures. Also, you can put fun requisites next to the booth so that people use them while taking pictures. Oversized glasses, a monocle, reindeer antlers, or a Santa hat are all fun stuff to have on photo booth pictures. Employees can take pictures with coworkers to create memories they can keep and share on social media.

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15. Secret Santa

Secret Santa as a party requires a bit more logistical preparation. You need to ensure that everyone has their Secret Santa (both giving and receiving gifts), that you limit the budget to something reasonable, and that everyone follows through by coming to the party. Encourage creative or humorous gifts to keep the energy light-hearted.

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16. Tree Decorating Party

A tree decorating party can be an amazing employee holiday office idea. If you have a bigger office, you can even have multiple trees and have different teams compete against each other for the best-dressed tree in the office. Just make sure that you provide ornaments, lights, and other decorations.

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17. Gingerbread House Competition

People love making gingerbread houses. Some make them for eating, but the biggest fun lies in decorating your gingerbread house and then showing it off. You can announce a competition early on, divide employees into teams, provide supplies, and let the creativity flow as they build and decorate gingerbread houses. Offer prizes for categories like “Most Creative” or “Best Theme.”

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18. Escape Room

An escape room functions similarly to a murder mystery. You have a bunch of people who have a highly engaging task in front of them that they need to solve. This can be done at an actual escape room venue, or you can create a DIY version in the office. You can create different types of rooms that require employees work together to solve puzzles and “escape” from a locked room. Depending on your employees, you’ll see if it makes sense to have escape rooms that last for 20 minutes or those that last two hours. Whatever you choose, just remember that it’s not about “escaping the room” but about having fun. 

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19. Christmas Potluck

A Christmas Potluck requires a bit more logistical coordination from your side. Assign dishes or categories (appetizers, main dishes, desserts) and let everyone bring their favorite holiday recipes. Christmas potlucks are a great way to share cultural traditions and try new dishes, and employees can showcase their cooking skills to their colleagues.

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20. Interactive Cooking Class

You don’t just have to cook the stuff you know for Christmas; you can learn how to cook a new dish! Host a virtual or in-person cooking class where a professional chef guides employees through a holiday recipe. With an interactive cooking class, you can follow along with a professional and create your dish with their instructions and guidance. This can be a fun way for everyone to learn something new and end up with a delicious meal or treat, especially if you’re a remote company.

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21. Wine and Cheese tasting

One more employee holiday party idea that can work both onsite and online and that adds a touch of sophistication to the celebration. When doing the activity in person, hire a sommelier to guide employees through different pairings. When doing it remotely, you have a bit more logistics to take care of if you send a tasting package to each participant, but it’s still a fun night for cheese-and-wine lovers. 

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22. Cocktail party

A cocktail party can be a festive way to unwind and mingle, especially if you have the budget to get a bartender to mix drinks for you and your colleagues. A cocktail party can really be great because you can do it with almost no budget and set up a DIY cocktail station where employees can make holiday-themed drinks.

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23. Scavenger Hunt

A scavenger hunt can really be a great employee holiday party idea because it’s so engaging. Organize a scavenger hunt with holiday-themed items hidden around the office or virtually for remote teams. Divide employees into teams and give them clues to find the items. Add some prizes for the winning team to make it competitive and engaging.

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24. Ice skating/Hockey

Embrace winter by organizing an ice-skating outing or a friendly hockey match. Employees can bond over shared laughs (and falls!), and it’s a great way to get everyone out of the office. Depending on your organization’s size and demographics, you can even create a tournament and give a reward to the team that wins it all.

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25. Bowling

If ice sports aren’t available in your local area, you can still have a great team-building activity by booking a few lanes and bringing people together to the bowling center. It’s a fun activity where employees can unwind and socialize in a casual setting, and the risk of injury is far lower than on ice!

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26. Paint night

A paint night can be combined with wine for a paint-and-sip event, where employees can enjoy a relaxing evening creating art. Get out the canvases and have people paint their pictures. You can use different ideas for a paint night: guide people through a holiday-themed painting, let them create something from their imagination or from a real model that they should paint as close to reality as possible.

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27. Masquerade Ball 

Last but not least is the masquerade ball. You can have different styles of masquerade ball, going from full costumes to black tie suits with only a face mask for people. Whatever you choose, just make sure that you inform people in advance so that they can prepare their clothes in time and dress appropriately for the party. This is a great way to end the year in style.

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In conclusion

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We have presented you with 27 employee holiday party ideas that will help you pinpoint the right one for your team and host an unforgettable holiday celebration that brings everyone together for a great time. Whichever you choose, make sure that you prepare the plan, the budget, and the logistics ahead of time so that there are no surprises on that night. By picking the right theme and creating an inclusive, festive atmosphere, your party can be the highlight of the year!

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And if you’re preparing Christmas gifts for your employees, make sure that you read our 15 Best Christmas Gift Ideas for Employees: From Unique to Practical to get some really cool ideas. 

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Investing in employee wellness can significantly boost workforce productivity and efficiency. According to data from Growth Market Reports, the global workplace wellness market was valued at $50.2 billion in 2022, with projections to reach $80.1 billion by 2031. More businesses are prioritizing workforce health to help improve business operations and output. Workplace wellness benefits take various forms, from fitness classes and digital workplace offerings to health coverage that ensures healthcare remains accessible to employees.

One often overlooked yet highly impactful element of workplace wellness is employee recognition programs. By acknowledging employee contributions, organizations can foster a sense of appreciation that directly impacts health, well-being, and job satisfaction, all while boosting performance.

As workplaces become increasingly digital and remote, organizations are adopting wellness programs to meet different employee needs. These programs often include employee recognition initiatives that promote a supportive, collaborative culture, which is key to reducing stress and improving both mental and physical well-being. In this post, we’ll discuss how employers can equip their workforce with the right wellness tools for health and well-being in the areas of vision, stress, and movement, while integrating the benefits of employee recognition programs.

Vision

While 88% of employers offer vision benefits, only a little over a quarter of employees fully utilize them. The key is to encourage employees to take advantage of these resources, especially since about half of employees report experiencing vision problems. Research indicates that untreated vision issues can negatively affect performance, but when employers offer comprehensive vision care, they help reduce overall healthcare costs by addressing problems early on.

Digital work environments often lead to extended screen time, increasing the risk of eye strain and other related issues. Employers can provide access to blue light glasses or cover their cost, helping employees reduce exposure to harmful blue light. Researchers suggest that eyeglasses with amber lenses can help filter out blue light and protect the retinas, limiting blue light exposure. Blue light glasses do not fully eliminate blue light since the sun naturally produces that, and you still need its benefits. Instead, the lenses block out the high energy short wave between 415 and 455 nm, which is what causes the most damage to the eyes. At the same time, companies can promote mindful working habits, such as encouraging regular breaks to rest the eyes.

Recognition programs can play a key role in reinforcing the importance of utilizing these vision benefits. By incorporating vision care into employee wellness incentives, companies can increase engagement with these programs. For example, using a platform like Qarrot, employers can track and reward employee participation in vision programs, which not only boosts morale but also helps ensure long-term eye health and productivity.

Stress

Mental health is increasingly recognized as essential to workforce productivity. According to the International Journal of Environmental Research and Public Health, positive mental health is linked to higher levels of innovation and work engagement. Employee recognition programs are powerful tools in mitigating stress, particularly by addressing feelings of underappreciation, which are often tied to job dissatisfaction and burnout.

By celebrating milestones and acknowledging contributions through tools like Qarrot’s Peer Recognition feature, employees feel more valued and supported, creating a positive work environment that helps reduce stress. This recognition fosters emotional support among peers, strengthening relationships and reinforcing the importance of well-being.

In addition to recognition, employers can adopt wellness initiatives that prevent burnout, such as sending break reminders and using time-tracking apps to ensure employees aren’t overworked. Recognizing employees for maintaining work-life balance, or even offering rewards for participation in mental wellness activities, is an effective way to promote stress management and well-being.

Movement

Maintaining physical activity in a largely sedentary work environment is crucial for employee health. Long hours spent sitting can lead to various health issues, including muscle aches, fatigue, and more serious conditions like heart disease. Top-performing companies understand this, often offering benefits like on-site fitness facilities or discounted gym memberships to promote physical activity.

Gamifying physical wellness through employee recognition programs can help encourage participation. Using Qarrot’s Incentive Campaigns feature, employers can reward employees for engaging in fitness challenges, which not only boosts morale but also promotes a healthy, active lifestyle. Friendly competition through leaderboards or badges can inspire more employees to stay active, improving both their physical and mental health.

Incorporating movement into daily routines, even through short breaks for stretching or walking, can significantly enhance creativity and productivity. Recognizing and rewarding employees for integrating physical activity into their workday ensures that wellness goals are consistently met.

Provide the Right Wellness Tools Today

Integrating employee recognition programs with workplace wellness initiatives offers a powerful combination for improving workforce well-being. Recognition fosters a supportive environment that enhances employee engagement, reduces stress, and boosts participation in wellness activities. Whether it’s through vision care, stress management, or encouraging physical activity, the right tools and recognition strategies help employees thrive.

With Qarrot, organizations like Cornerstone Insurance and SMTP2GO have successfully launched employee recognition programs that not only improved engagement but also supported overall wellness. By investing in both wellness and recognition, you can create a healthier, more motivated workforce. Contact Qarrot today to learn how we can help your organization succeed.

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Organizing office events that resonate with employees can be challenging for leaders and HR professionals. Whether your company is a startup with a handful of employees or a large corporation with hundreds, finding the right activities everyone enjoys—and ensuring high attendance—can feel like an uphill battle. 

As we all know, traditional office parties and standard team-building exercises sometimes fall flat, leading to low participation and reduced engagement. Employees may feel that these events are just another obligation rather than an opportunity to relax and connect with their colleagues.

To help solve these challenges, let’s have a look at a few fun and budget-friendly office event ideas. These suggestions are designed to cater to businesses of all sizes, ensuring that there is something for everyone, regardless of company size or budget. From interactive workshops and themed parties to wellness activities and outdoor adventures, these events will spark creativity, boost morale, and encourage participation.

Incorporating these corporate event ideas into your calendar can create a more dynamic and inclusive workplace culture. So, let's dive in and discover how you can transform your office events from mundane to memorable, making them an anticipated highlight for all employees.

12 Office Event Ideas To Put in Your Calendar (for Every Sized Business)

1. Innovation Labs

Ideal for: Small to medium-sized businesses

Budget: None

How it works: An "Innovation Lab" is an exciting initiative where companies allocate dedicated time for employees to come together and brainstorm innovative ideas. Open to participants from all departments, this initiative encourages creativity and out-of-the-box thinking, free from the typical constraints of the workday. A moderator should host sessions and can have some parameters around them, like each session can cover a certain topic or area of improvement. The sessions can be hosted more frequently, like on a monthly basis or even just a few times a year. Ultimately, it's up to you! One of the greatest benefits of these events is that they are free to roll out and host.

2. Volunteer day

Ideal for: Small to medium-sized businesses

Budget: May require a small budget

How it works: Volunteer Day allows your company or certain teams to dedicate their time and effort to a cause they care about. During a volunteer day, employees are offered time away from the office to volunteer for a particular organization in the community. Some organizations require a donation for corporate volunteer days – hence the possible small budget required, but some don’t. If your company is trying to get more involved in social causes, this might be a fun and meaningful way for your team to get together and spend an afternoon. 

‍3. Lunch and learn

Ideal for: Any sized business

Budget: None

How it works: "Lunch and Learn" sessions are informal training events held during lunchtime, where employees can gather to learn about a variety of topics while enjoying their lunch. These sessions can be a great way for internal talent to show off their knowledge and expertise in certain areas, as these sessions are usually hosted by employees themselves and cover a wide range of subjects. Lunch and learns are also ideal for fully remote teams, as they allow employees to get together, learn from each other, and chat in a more informal setting. 

‍4. Fitness challenges

Ideal for: Small businesses

Budget: Small budget for prizes for winner

How it works: Launching a fitness challenge can be a great idea for small businesses looking to develop a wellness program for employees who are already active or eager to be more active! Each fitness challenge can have a theme like “monthly step goal challenge” or “monthly running challenge.” Set up a reasonable goal that employees have to reach for this particular challenge and ask employees to keep track of their activity. At the end of the month, those who reach the goal can receive a prize. This can also be a great activity idea for remote teams, as they can keep each other in the loop of their progress towards their fitness goals via creating a channel in your chat tool for this monthly challenge or if you’re using an employee engagement tool like Qarrot employees can post updates on the company’s newsfeed.

‍5. Photo contest

Ideal for: Small to medium-sized businesses 

Budget: Small budget for prizes

How it works: Photo contests are ideal for remote teams, but they also work for hybrid teams or teams that are fully in the office. These types of creative contests are great for employees to show off their artistic skills and serve as a jump-off point for discussing non-work topics like pets and vacations. In short, they are a great icebreaker! The event is simple; it asks employees to present their best photographs, and usually, there is a theme. For example, pets, nature, travel, etc. For remote teams, photograph submissions can be made in a chat channel created for this challenge, and a panel of judges can rate the quality of the photographs based on certain criteria. The winners, of course, receive a small prize. 

6. Job shadow day

Ideal for: Any sized business

Budget: None

How it works: When you work for an organization, it's normal to be curious about what other people in your company do daily. Moreover, it can actually be a great way to boost a company's performance and collaboration when people appreciate what another's job entails. In addition, some people may be curious about moving positions but unsure if it's right for them. Job shadowing is a great opportunity for employees to learn about each other's work and test the waters of a new role or responsibility. Setting up a special day where any employee can shadow another for an afternoon is a great way to hit all these goals all the while being budget friendly.

‍7. Outdoor picnic

Ideal for: Small to medium-sized businesses

Budget: Modest to moderate

How it works: A classic company outing is a great way to give your employees a way to relax and unwind during the warmer months of the year. This is an ideal opportunity to offer employees half an afternoon off; consider making the picnic during lunch hour and allowing employees to enjoy the rest of the afternoon with their colleagues. They may not be traditionally ‘productive’ during this time. However, taking the time to bond with teammates is an important part of morale and team building and indirectly impacts productivity and engagement.

9. Talent show

Ideal for: Small to medium-sized businesses

Budget: Modest

How it works: Hosting a company talent show can be a playful, creative, and, not to mention an often hilarious, way for employees to express themselves, get to know each other, and break free from the daily grind. These talent shows should be open to any and every employee who wants to show off a special skill, and they can also be scaled up or down depending on the size of your company and budget. There is a lot of flexibility here, depending on how big or small you want this event to be! In addition, you can make it into a really friendly competition, and a panel of judges can score participants so that your winners receive a prize. 

‍8. Friday happy hour

Ideal for: Any sized business 

Budget: Modest

How it works: A classic happy hour or a “beer Friday” event is always a tried and true idea for employees to unwind and reward themselves after a long work week. These events should never be mandatory but more casual, allowing employees to pop in for a drink and refreshment before heading home. To spice up your happy hour, consider incorporating some ice breaker exercises or games to help people ease into interacting. A few icebreakers can be highly appreciated by socially introverted individuals and a great motivator to get them involved in these events.

‍9. Employee recognition events or “office awards”

Ideal for: Any sized business

Budget: Modest

How it works: An office award ceremony is a lighthearted and informal event celebrating team members' unique qualities and contributions. This event can be a standalone, or part of a greater recognition and rewards program and initiatives. Categories could include "Best Attitude," "Best Outfits," and "Most Helpful," highlighting both professional achievements and personal flair. Preparation includes picking fun award categories, gathering nominations, and making simple yet personalized awards, like certificates and trophies. The event can also have refreshments, music, and an MC to present the awards. The goal is to boost morale, foster camaraderie, and recognize the diverse talents and personalities within the team. With a little bit of creativity, resourcefulness, and the right communication tools like Qarrot, these types of office awards can be hosted virtually for remote teams as well.

‍10. Family days

Ideal for: Small to medium-sized business

Budget: Modest to moderate

How it works: Organizing a "Family Day" for office workers involves planning a fun and inclusive event that welcomes employees' families to the workplace, fostering a sense of camaraderie and community. When employees get to know each other's family, it can foster a sense of closeness that can actually be beneficial to employee happiness, engagement, and even productivity. Not to mention, having an afternoon where employees are encouraged to have fun and relax can show employees you care about their well-being. The event can involve games, refreshments, workshops, and other activities that are family-friendly. This can all be achieved on a small to moderate budget with some resourcefulness and creativity.

‍11. Cultural festivals

Ideal for: Any sized business

Budget: Modest to moderate

How it works: Workplaces are richer when diversity is celebrated and educated. By hosting a cultural festival, your office can honor many nationalities. You may want to set up various stations on the same day to emulate a trade show or hold a series of festivities throughout the year.

Here are a few global holidays and festivals you may consider:

• Holi: An Indian spring festival often celebrated by throwing brightly-colored powder, occurring at the end of March
• Cinco de Mayo: A Mexican holiday celebrated on May 5th and has evolved into a significant cultural celebration of Mexican heritage and pride, marked by festivals, music, dancing, and traditional Mexican foods.
• Lunar New Year: Following a lunar calendar, many Asian countries celebrate new Year over two weeks in January or February. Families celebrate together by eating large meals, cleaning, and honoring ancestors.
• Oktoberfest: A German beer-centric festival that takes place the last week of September and the first week of August.
• Carnivale: A mid-winter celebration popular in Brazil and the Caribbean with parades and elaborate costumes.

12. Company tailgate

Ideal for: Small to medium-sized 

Budget: Modest 

How it works: Organizing a company tailgate involves planning a casual and enjoyable event that allows employees to unwind and socialize in a relaxed outdoor setting, often in conjunction with a sporting event. To ensure it's fun and relaxing, select a suitable location, such as a stadium parking lot or park, and set up tents, seating, and tables for comfort. Arrange for classic tailgating activities like grilling, games (e.g., cornhole, ladder toss), and possibly a live stream of the game if not attending in person. Various food and beverages, including non-alcoholic options, ensure everyone is catered to. Organize carpooling or provide transportation to facilitate attendance, and consider creating a sign-up sheet for potluck contributions to diversify the food offerings.

Final Thoughts

When employees take the time to socialize at work and get to know each other, it fosters a deeper sense of engagement and happiness in the workplace. This can have a huge, positive impact on a company's productivity and even overall performance.

The problem is that socialization cannot be forced. But sometimes, people need a little push to get out of their comfort zone. In other words, they need a bit of motivation to get to know each other. These office event ideas allow employees to meet each other and socialize in a relaxed, casual setting while being budget-friendly. Hopefully, these social events will be the jump off point you require to create some buzz and engagement in your workplace. 

Few aspects of the workplace are as important as employee retention. HR professionals think of it like walking a tightrope. Too many exits weaken a company's foundation, while too few signal a lack of fresh perspectives. 

For example, consider a scenario where employees frequently quit. In doing so, they leave knowledge gaps, reduce morale, and increase recruitment costs. In contrast, imagine a workforce where faces rarely change, leading to stagnation and preventing diverse ideas from flowing in.

Striking a balance is key.

This article will provide you with information on how to achieve that balance. First, we'll dive into the question of why employees quit. We will explore some of the most recent statistics and studies that help shed light on this issue. Then, we will examine the importance of employee retention and how it impacts organizations. Lastly, we will explore some top-level frameworks that HR teams and leaders can use to approach employee retention more strategically. 

As a result, your efforts to reduce employee turnover will not be hasty band-aid strategies but rather well-thought-out, targeted solutions that address the root of your labor issues.

Why Employees Quit: 5 Common Reasons for Low Employee Retention

Most employees don't wake up one morning and quit their jobs on a whim...

Poor retention is often caused by underlying factors within a business. But what are those factors affecting retention? We all know some common culprits through anecdotal conversations with our friends—like a bad boss and low pay. But do actual studies and research support these personal stories?

Let's look at recent workplace statistics that shed light on the most common reasons employees choose to leave their jobs. Once organizations understand the main driving factors of employee turnover, they will be better positioned to create targeted solutions that genuinely address their retention issues.

Lack of growth opportunities

Picture yourself in a role where each day feels like a replay of the last. There is little room for learning, growth, or change. Without clear pathways for growth or opportunities to hone their skills, employees can quickly feel stagnant and unfulfilled. 

A recent survey by the America's Psychological Association shows that 91% of people say it is somewhat or very important to have a job where they consistently have opportunities to learn. Yet, only 47% report that their workplace offers learning opportunities.

In other words, over half of businesses aren't making an effort to create any learning programs and initiatives for their employees. The desire for personal growth is a basic human need. When companies fail to encourage this ambition, they risk losing their top talent to competitors who offer more fertile ground for development. In the lack of such opportunities, it's only natural for them to look somewhere else for career development.

Lack of appreciation

Everyone wants to be recognized and appreciated. This is another basic human need. It's no wonder that one of the main reasons employees decide to quit is the absence of appreciation and recognition. Many workplace studies support this claim. 

For example, a 2021 report by McKinsey found that 54% of employees cited "not feeling valued by their organization" as a top reason for quitting. Another 2017 report by Gallup showed a lack of recognition as one of the most common reasons employees left an organization. It's interesting to note that talented employees tended to leave faster.

To be clear: recognition isn’t always about monetary rewards, although it can be. What we are referring to here is simple verbal appreciation from managers and leaders; the acknowledgment of your employee's hard work. Whenever employees feel undervalued and overlooked, their commitment to the organization fades, and they look for greener pastures. Appreciation isn't just a "nice to have." It's the cornerstone of employee engagement and retention.

Toxic work environment

Picture a workplace where tension, hostility, or passive-aggressiveness pervades the air. In such environments, employees may find themselves constantly fearing leaders, battling office politics, grappling with micromanagement, or contending with unfair treatment. Employees crave workplaces where they feel valued, supported, and empowered to bring their whole selves to work. When faced with toxicity, they often opt to seek out workplaces that prioritize their well-being and foster a culture of inclusivity, collaboration, and mutual respect.

For example, a recent study published by MIT Sloan Management showed toxic company culture was the top predictor of employee turnover, more than pay. 10X more, to be precise!

In other words, if your business is suffering from high turnover, you might have a toxic workplace culture or dysfunction issue on your hands. After all, in a world brimming with opportunities, why stay in a toxic environment that chips away at one's esteem and mental health?‍

Low Compensation

Poor compensation is also frequently reported as a reason why employees consider leaving a company—no surprise here. When employees perceive a gap between the effort and contributions they make and the reward they receive, it can quickly breed resentment. 

A 2022 SHRM study surveyed 1,516 HR professionals in the U.S. to know what they consider the top reasons for turnover at their organizations. The most common reason HR professionals cited for their employees leaving was inadequate total compensation.

In an era where the cost of living steadily rises, employees increasingly find themselves wrestling with the stark reality of making ends meet. When salary fails to align with the value of their contributions or fails to meet their financial needs, it's only natural for them to seek opportunities elsewhere that offer fair and equitable pay. 

‍Bad relationship with manager

‍Bad management is one of the most common causes of employee turnover. Nevertheless, this may be overlooked because employees tend not to give this feedback upon departure. Let’s look at some data that supports this idea. 
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For instance, in a workplace survey by GoodHire, 82% of American workers said they would quit their jobs because of a bad manager. In another interesting survey by Real Estate Witch, over 1000 Americans were surveyed, and 75% reported feeling frustrated with their managers.

Employee frustration with leadership was attributed to the following reasons:

• Unclear communication (31%)
• Micromanagement (27%) 
• Favoritism of other employees (27%)

The root of poor management often runs deep. It can start all the way at the top; cultural and systemic issues in the company can trickle down to middle management. Or it may be an issue of individual managers lacking proper interpersonal skills and training. Either way, there are standards around management that need to be addressed. By addressing these root factors, companies can create cultures where both managers and employees thrive.

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7 Reasons Why Employee Retention Is Important for Businesses

1. Reduced hiring costs

The costs associated with hiring are high. Substantial steps are required to replace an employee, such as posting vacancies, conducting interviews, and training new employees. Each time an employee leaves and a replacement is needed, these costs recur. As a result, the company utilizes resources that could be spent elsewhere. High turnover rates can also negatively impact morale and the company culture, leading to a negative cycle of employee dissatisfaction and departure.

2. Enhanced productivity

Employees who've been in the game longer know the ropes better. They're familiar with the ins and outs of the company. Naturally, this means they're less likely to make mistakes and more likely to come up with clever ways to get things done. This expertise doesn't make them faster at their jobs; it also means they can help out new employees. Plus, when people feel like they're in it for the long run, they're more invested in the company's success. They put in that extra effort because what's good for the company is good for them, too. In short, focusing on keeping your team together means everyone's working smarter, not harder, making the whole organization more effective.

3. Improved employee morale

Employee retention does wonders for team spirit. It's all about trust and stability. The workplace starts to feel like a tight-knit family; everyone feels part of the team. This sense of belonging boosts morale because people know they're valued and not just another number. Plus, a stable team means strong friendships and deeper connections, making it easier for everyone to work together. People are more likely to go the extra mile for their team, share ideas freely, and support each other. This camaraderie doesn't just make coming to work more enjoyable; it actually drives everyone to do better because they're all in it together.

4. Better customer satisfaction

Long-term employees become really good at what they do. They know the products or services inside out, anticipate customer needs, and handle tricky situations with ease. This knowledge means customers receive excellent service every time. And when customers interact with the same friendly faces over time, trust builds. New customers become loyal patrons. This loyalty isn’t just about repeat business. Happy customers become advocates for the brand. In short, they spread the word to friends and family. So, investing in keeping your team together isn’t just good for morale—it’s a direct path to making clients happier and more loyal long-term.

5. Knowledge preservation

As people leave, they take all their knowledge with them, leaving gaps that can be difficult to fill. High turnover means you're playing catch-up. Your leaders are trying to transfer skills and information before they walk out the door. On the flip side, a stable team keeps this valuable knowledge in-house. It makes training new employees easier because there's always someone with the answers. To nail this, companies can encourage mentorship programs. They can also create internal wikis or databases where employees record what they know. This way, knowledge doesn't just live in people's heads—it's available to everyone.

6. Stronger employer brand

When a company is known for keeping its employees happy and engaged for the long term, word gets around. This reputation makes the company stand out as an employer of choice. As a result, it has a better chance of attracting talent looking for stable and rewarding careers. In today's job market, having a strong employer brand is like having a magnet that attracts the best candidates. This positive employer brand image helps companies fill positions quickly and with qualified staff eager to be part of a team. 

7. Increased ROI for training and development

Training new hires is costly. And if new employees leave too soon, that investment just walks out the door. However, when companies focus on keeping their people, they see the full benefits of their investment. Employees who stick around become more skilled and efficient, directly boosting the company's bottom line. When people feel their employer is invested in their growth, they're more likely to stay put. This creates a positive cycle: the company invests in training, employees feel valued and stay longer, and the company benefits from their improved skills and loyalty. 

How to Approach An Employee Retention Strategy

The benefit of employee retention is undeniable. Yet, for many businesses, retention efforts tend to be reactive rather than proactive.

In other words, companies only consider them if there is a glaring problem, like high turnover or low morale. This is especially true if the leaders can place a price tag on that problem and see a clear ROI; otherwise, these issues tend to slip to the bottom of the priority list.

Even so, these retention solutions and employee engagement plans are often hastily put in place. Leaders fail to explore the issue's root or question if their staff will benefit from them. In short, they copy/paste "trendy" HR ideas without first considering whether this initiative will be a good fit for their business and employees.

Being more deliberate and proactive about employee retention starts with analyzing what your businesses current offering and seeing how it stacks up aginst employers in your industry.

Auditing your company’s EVP

A company’s EVP, as defined by SHRM, is “everything of value that an employer provides to its employees—pay, benefits, training, career development opportunities and so on—and it is then “marketed” to the workforce.”

Documenting your EVP is the first step to approaching employee retention more strategically. 

• Compensation: salary, pay raises, bonuses, profit sharing, reward programs.
• Core Benefits: health insurance, vacation, time off. 
• Work environment: Work-life balance, remote work, management style.
• Career: Promotions, training, mentorship, learning opportunities.
• Culture: Mission, prestige, social responsibility.

By auditing everything your employees perceive as valuable, you develop a good idea of where your business stands compared to other companies in your sector.

Is your offering competitive? Are you presenting something unique that other businesses aren't? It will be easier to answer all these questions. Based on the gaps in this analysis, you can start developing your employee retention initiatives.

In the end, these initiatives will be more strategic because they will address weaknesses in your EVP. And most importantly, they will be tailored to the tastes and needs of your actual workforce.

Final Thoughts

The balance between turnover and stability in any workforce is delicate. Both extremes carry potential pitfalls for any organization. Striking a healthy balance is critical.

This goal can be achieved by figuring out why employees leave. In other words, digging down the root causes of employee turnover can help businesses understand how and where to start making improvements to foster greater retention. 

That said, understanding all the ways poor retention impacts businesses—from increased hiring costs to damaged employer brand—can help spur organizations to be more proactive about improving employee commitment.

As we have explored, the path to effective employee retention is not merely reactive but requires a proactive, strategic approach. By investing in our employees' satisfaction and engagement, you not only mitigate the risks associated with high turnover but also unlock the full potential of your workforce.

With more employees working both in-office and remotely, it's clear that the future of work is hybrid. In a recent study conducted by Benefits Canada, more than half (54%) of Canadian employers reported that they have begun using a hybrid work model. While this setup has many natural advantages for employees, it also presents a unique opportunity for companies to upgrade their employee benefits, both to attract and retain top talent.

This is important to consider since many traditional employee benefits are not hybrid-friendly, and cannot be fully utilized by employees. By upgrading these benefits, companies can create a win-win situation where employees are happier and more productive, while the employer benefits from increased loyalty and retention. Below are some ideas on hybrid-friendly benefits that your employees are sure to appreciate.

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Desk equipment

Whether companies provide a budget for equipment or provide the actual equipment themselves, allocating resources for employees to be able to build better desk set-ups at home is crucial. Studies have shown that ergonomic desk equipment can improve employee health by reducing strain on their bodies, making them less likely to experience back pain, neck pain, and other posture-related issues. Feeling comfortable in workstations can also reduce fatigue, discomfort, and stress, leading to fewer breaks and higher productivity levels. In addition, better desk equipment like updated laptops or computer models, high-quality microphones, and noise-cancelling headphones can improve communication among both employees and employers.

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Vision insurance

With continuous screen time brought about by the hybrid work setup, employees need to take care of their eyes more than ever. Eye strain and other vision problems can negatively affect productivity and even cause increased absenteeism. This is why vision insurance is a crucial aspect of hybrid work benefits, and why it is in the employer’s best interest to not only offer but also teach their employees how to use vision insurance. Employees can easily cash in these insurance packages for comprehensive eye exams, prescription lenses, and other vision-related expenses, or they can claim back the costs through direct or manual billings. This is easily accessible as some of these insurance processes can be done online through eyewear websites.

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Wellness budgets

While specific wellness programs on their own can be a good employee benefit, these programs assume a one-size-fits-all approach. A company-chosen program may or may not be a good fit for an employee in a hybrid setup, which is why it would be good to amend this type of benefit by converting it into a wellness budget. This allows for flexibility and customization in wellness offerings. Like many other benefits, this can be done through reimbursement for eligible services such as gyms, spas, and various other wellness offerings. This approach can greatly reduce costs associated with traditional in-person wellness programs, and can even accommodate virtual wellness programs for employees who wish to avail of the benefits from the comfort of their own homes.

Flexible schedules

By allowing employees to set their own schedules, especially during remote working days, companies can help reduce their stress and promote work-life balance. Working during hours that suit personal needs and preferences can greatly increase productivity as employees are able to work during the time of the day when they are most awake and alert. Flexible schedules will also enable employees to accommodate other commitments, from prioritizing their mental health to spending time with their families, and many other personal endeavours. All things considered, flexible schedules are a low-cost benefit that can bring about high employee satisfaction. In addition, this benefit will help employers attract and retain top talent, especially those with caregiving responsibilities.


These are only a few benefit ideas that can help your employees and strengthen your company’s relationship with them. For more ideas and other related information on employee engagement and company culture, make sure to check our website!

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The world of work is constantly evolving, and as we move further into 2023, human resources (HR) professionals are facing a range of challenges and opportunities. From the ongoing impact of the pandemic to the rise of new technologies and changing workforce demographics, HR leaders must stay ahead of the curve to effectively support their organizations and employees. In this article, we will explore some of the best practices for HR in 2023.

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1. Prioritize Employee Well-Being

The pandemic has brought employee well-being to the forefront of HR concerns, and this trend is likely to continue in 2023. As organizations return to the office or adopt hybrid work models, HR leaders must prioritize the physical and mental health of their employees.

One best practice for supporting employee well-being is to provide flexible work arrangements. This could include remote work options, flexible scheduling, or job sharing. Additionally, HR professionals can offer mental health resources and support services, such as counseling or employee assistance programs.

Another important aspect of employee well-being is recognizing and addressing burnout. HR leaders can help prevent burnout by setting realistic workloads, providing clear expectations and feedback, and encouraging breaks and time off.

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2. Embrace Digital Transformation

The rapid pace of technological change is driving digital transformation across all areas of business, and HR is no exception. From applicant tracking systems to employee engagement platforms, HR professionals must be familiar with a range of digital tools and platforms to effectively support their organizations.

One best practice for HR in 2023 is to embrace digital transformation by investing in new technologies and upskilling HR staff. By adopting advanced technologies, such as artificial intelligence and machine learning, HR leaders can automate routine tasks and improve decision-making processes. Additionally, digital tools can help HR professionals better understand employee needs and preferences, leading to more effective communication and engagement.

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3. Foster Diversity, Equity, and Inclusion

In recent years, diversity, equity, and inclusion (DEI) have become a top priority for many organizations. In 2023, HR professionals must continue to foster DEI in the workplace to attract and retain a diverse and talented workforce.

One best practice for supporting DEI is to establish a clear DEI strategy and set measurable goals. This could include increasing the representation of underrepresented groups in leadership positions or improving the recruitment and retention of diverse candidates.

HR leaders can also foster DEI by offering bias training and creating a culture of inclusivity. Additionally, HR professionals can establish employee resource groups (ERGs) to provide support and networking opportunities for employees from diverse backgrounds.

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4. Improve Employee Engagement

Employee engagement is essential for organizational success, and HR professionals must continue to find ways to improve engagement levels in 2023. This could include providing opportunities for professional development, offering competitive compensation and benefits, or creating a positive workplace culture.

One best practice for improving engagement is to regularly solicit employee feedback and act on it. By listening to employee concerns and suggestions, HR leaders can identify areas for improvement and implement changes that will make a positive impact on employee engagement.

Additionally, HR professionals can create a culture of recognition and appreciation. This could include providing regular feedback, celebrating employee achievements, and offering incentives or rewards for outstanding performance.

In conclusion, HR professionals in 2023 must be prepared to navigate a range of challenges and opportunities. By prioritizing employee well-being, embracing digital transformation, fostering diversity, equity, and inclusion, and improving employee engagement, HR leaders can effectively support their organizations and create a culture of success. By staying ahead of the curve, HR professionals can position their organizations for long-term success in the years to come.

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Inclusive communication is a language style that actively acknowledges individuals for who they are and demonstrates respect for people from various backgrounds. It ensures everyone's perspectives are respected and that each employee has access to equal opportunities.

Inclusive communication employs neutral, non-discriminatory, and unbiased language and communication techniques to develop a friendly, polite, and egalitarian environment where people feel appreciated and heard, regardless of their differences.

What is Inclusive Communication in the Workplace

Inclusive communication creates a work environment that feels supportive and genuine. This type of communication helps employees feel at home at their place of work. Companies that prioritize a culture of inclusive communication have a greater chance of success, often surpassing their competition in crucial areas like hiring, employee engagement, employee satisfaction, and business growth. 

Communicating inclusively goes hand in hand with diversity, equity, and inclusion efforts. The more leadership commits to DEI initiatives, the stronger the culture of inclusive communication will become. 

At the root, inclusive communication is about promoting an atmosphere of respect at work and fostering open communication where employee differences are honored and respected. Workshops on topics like unconscious bias and the harmful impact of prejudice and stereotyping can cut off hurtful communication habits at the source.

Other components that create an intentional culture of inclusion include routinely evaluating and eliminating barriers to inclusivity and actively working to promote a more diverse and inclusive workplace. Businesses prioritizing inclusivity position themselves for long-term success and have happier, more engaged employees.

A variety of inclusive communication modes exist in the workplace, including:

• Non-verbal: Body language, facial expressions, and tone of voice all significantly impact fostering an inclusive work environment.

• Verbal: Potentially the most prevalent method of communication at work.

• Written: All written communication, including emails, memos, and company reports.

The 4 “Isms” that harm inclusive communication

Communication cannot be inclusive if the work culture allows prejudiced language or hate speech. Here are four common “isms” that actively prevent inclusivity:

• Sexism: Sexist language that degrades or stereotypes an employee based on their gender.

• Ageism: Terminology that singles someone out due to their age.

• Racism: Racially charged language that is insulting or stereotyping.

• Ableism: Stereotypes or insults someone due to their differing abilities.

Why is Inclusive Communication Important

Organizations can build an inclusive, respectful, and equitable workplace culture for all employees by promoting inclusive communication awareness and education. 

Creating a culture of inclusive communication shows the company’s effort to utilize language that contributes to a more equitable world while condemning the misrepresentation and institutional discrimination that plague our workplaces to this day.

Inclusive communication breeds a culture of acceptance and opportunity for all. This triggers a domino effect that can improve productivity, employee engagement, and even customer satisfaction.

Multiple factors make inclusive communication in the workplace necessary:

• Respect: All people should be treated with respect, regardless of gender, color, ethnicity, sexual orientation, or ability, as demonstrated by inclusive communication. It produces a friendly and encouraging work environment.

• Diversity: Inclusive language shows a company values diversity within the workforce.

• Legal obligation: Companies are required to provide a work environment free from harassment and discrimination. Inclusive communication is a crucial part of cultivating an equitable company culture. 

• Communication: Everyone can better comprehend one another and collaborate more successfully when speech is free from bias.

• Reputation: Businesses that prioritize inclusive language are more reputable in the eyes of potential employees, investors, and customers.

• Employee engagement: When employees feel valued, metrics like engagement, morale, and productivity improve. 

How to communicate with inclusivity in 2024

Here are some actionable ways to make workplace communication more inclusive this year:

Replace stereotypical and culturally insensitive language with inclusive alternatives

Many expressions commonly used in the workplace are exclusive in nature. Encourage employees to consider what language they use that, while not overtly offensive, does not reflect everyone in the office. People often use slurs without even realizing it. 

Even the most seemingly innocuous words can be rooted in discriminatory language. For example, the word “dumb” is commonly used to reflect someone who isn’t intelligent but is actually defined as someone who cannot communicate verbally. And while commonly used to say someone behaves erratically, the term “spastic” actually references the muscle tightness and contractions resulting from cerebral palsy and/or multiple sclerosis.

Commonly used idioms like “blind leading the blind” and “falling on deaf ears” are also exclusive in nature. 

Understand employee identities

People's identities are primarily shaped by their race and ethnicity, meaning misidentification can be damaging and invalidating. 

Make an effort to understand and learn whatever race, ethnicity, or national origin employees identify to avoid making assumptions and lumping everyone into one racial group, such as Asian or African. Encourage employees to communicate openly about the language they do not perceive as inclusive.

Communicate openly about language preferences

Ableist language can indirectly define a person by their disability status and propagate harmful stereotypes.

This is incredibly dangerous, considering the discrepancy between employment rates for people with and without disabilities. In 2022, the U.S. Bureau of Labor Statistics reported that 21.3% of people with a disability were employed. That is less than a third of the employment percentage for those without a disability (65.4%). 

Companies can actively combat ableist language by communicating openly about what language employees with disabilities prefer. Some people prefer person-first language like “person with a disability”, while others prefer identify-first language like “disabled person”. Genuine inclusivity means recognizing that not every person perceives language the same way and prioritizes respecting each and every employee’s definition of what is and isn’t inclusive of their identities. 

How to Drive Inclusive Communication Rewards & Recognition Software

Building a culture of inclusivity in the workplace is no small feat, but injecting inclusive language into rewards and recognition programs is a good place to start. You can make your organization a hub for inclusive collaboration by standardizing the process of rewarding and recognizing employees. 

Qarrot empowers employees to nominate each other, all while providing managers with advanced insights that weed out any potential biases. Interested in learning more?  Book a demo to see Qarrot in action!

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Unresolved workplace issues disrupt employees’ workflow. A study on team conflict published by the Global Transitions Proceedings found that team climate and cohesion are directly linked to the outcome of a project. Thus, a positive climate and relationship among employees greatly improves the quality of their work. As such, whenever there are workplace issues, business owners must do their best to resolve them.

If you’re unsure how to start, take our guide on the right approach to solving workplace issues:

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Diagnose the problem

The first step is to identify the root cause of the conflict. For some business owners, it’s convenient to suggest team-building activities to resolve conflict. However, generic band-aid solutions like this do not actually target the problem at hand.

For instance, Senior Vice President of global leadership solutions for LHH, Alex Vincent, shares his company experience when a team of the best employees was underperforming. While the CIO wanted Vincent to do anything and everything to solve the problem, he opted to talk to each team member. Doing this, he found out that the underperformance was caused by one member who did well alone but lacked in team settings. Thus, Vincent recommended that the CIO address that individual instead of the whole team. As a result, the team improved and performed better. Without this diagnosis, the cause of conflict wouldn’t have been identified and given a resolution.
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Acknowledge everyone’s perspective

Conflict is between two or more parties. They will have different perspectives regarding the problem, which is why you should hear everyone’s thoughts regarding the situation.

Abdul Omar, a worker at the Office of the Ombudsman in Hawaii, says that the difference in perceptions is actually the cause of conflict. When you talk to all the parties involved, you start to see how their behaviors are causing the issue — not their personality traits. For example, an employee can be perceived as incompetent by others when they’re slow to finish tasks. It’s better to address the employee and ask if there are things going on in their personal life. When employees’ perceptions are acknowledged, business owners think of better solutions that would satisfy each of the involved employee’s situations.
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Brainstorm workable solutions

Now that the problem has been identified and everyone’s perceptions have been understood, possible solutions can be formulated. It is in this stage that it is crucial to practice empathy, as mentioned in our post ‘Why and How to Cultivate Empathy in Your Organization’. Empathy allows you to relate to others, thus creating the best possible solutions for them.

Keep in mind what you’ve gathered from the diagnosis and employees’ perceptions. For example, an employee that does not participate in meetings is perceived as apathetic. Upon talking to the employee, you find out it is because they aren’t given chances to talk. As a result, a solution you can come up with to satisfy all parties and address the actual problem is to extend the meeting duration. This way, the “apathetic” employee is given the opportunity to talk, others won’t perceive them as such, and there won’t be a repeat of the problem.
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Implement and monitor the solution

After formulating a solution that benefits everyone, it’s time for implementation. Inform the involved parties of your proposed solution and what each of them should do in order to achieve the desired outcome.

However, resolving conflict does not stop at solution implementation. As the person running the business, you should see to it that your solution is making progress. Monitor how the people involved are reacting or changing their behavior in accordance with your suggestions. If there is no progress or the situation worsens, it’s best to step in and redo some steps like brainstorming workable solutions.

Unresolved workplace conflict will affect your employees’ performance and your business as a whole. Thus, you should take measures in order to resolve them as soon as possible.

For a time, empathy and caring were considered the opposite of effective corporate culture. Maybe even today, leaders believe they must choose between caring for their people and driving results. 

After all, balancing these priorities is one of the biggest struggles of being a boss.

But do leaders need to choose between these two ends of the spectrum? Is it possible to have both? Jamil Zaki, a psychologist and foremost researcher on the study of empathy, believes so.

‍In a recent Fast Company article, he asserts that companies often find themselves caught between these two competing priorities—empathy VS efficiency, but he claims it's a false duality. In other words, he argues companies don't have to choose between the two.

In fact, a growing body of evidence suggests that empathy could lead to greater organizational performance. Ultimately, empathy is not the antithesis of productivity but rather one of the key factors in maximizing efficiency at work.

‍A case for empathy in the workplace

According to Psychology Today, empathy is the ability to recognize, understand, and share another person's feelings. In other words, an empathic person understands the needs of others and is sensitive to their emotions. Empathy is crucial to establishing strong relationships and enhancing group dynamics at work.

Given the increasing demands and stresses of modern life and the surge of worker burnout, promoting empathy in the workplace is becoming even more critical to fostering healthy, happy, and productive workplace cultures.

A few studies and research reveal the impact of empathy at work:

• Employees who feel their companies lack empathy are more likely to burn out and call in sick with stress-related illnesses. (Organizational Behavior and Human Decision Processes)
• 76% of people with highly empathic senior leaders report often or always being engaged, compared to only 32% of people with less empathic senior leaders. (Catalyst)
• The majority (86%) of employees believe empathetic leadership boosts morale while 87% of employees say empathy is essential to fostering an inclusive environment. (EY Consulting)

The research is undisputed: showing empathy at work contributes to greater employee well-being and happiness. In turn, this leads to greater engagement, efficiency, and productivity in the workplace. 

But when it comes to a soft skill like empathy, it isn’t always clear how to practice it. This is not something that can be boiled down to an exact formula. 

Nevertheless, you don’t need to be a mental health expert to practice empathy. There are actionable steps leaders can take to build greater empathy in their team. Next, we’ll dive into a few examples of empathy at work so you can take steps toward creating a more empathetic work environment.

6 Ways to Increase Empathy In The Workplace

1. Practice active listening

When an employee comes to you with an issue, your first instinct might be to jump straight into fix-it mode.

You might do this by:

• Offering advice ("Have you tried this?),
• Trying to change their perspective ("Others have it worse.")
• Offering unhealthy positivity ("Try to stay positive.")

Of course, sometimes people want practical advice or need to hear a voice of logic. But oftentimes, when we go into fix-it mode, we unwittingly fail to understand the other person effectively. 

The antidote is active listening. In leadership, active listening means paying attention, understanding, and remembering what others say. It's not just about hearing words; it's about making an effort to make people feel heard. 

According to Very Well Mind, a few techniques are involved in practicing active listening. For example, being fully present, making eye contact, and asking open-ended questions.

In other words, before rushing to offer practical advice or fixes, you should ask questions and validate their feelings. These small gestures in conversation will go a long way to making people feel you genuinely care about them. 

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2. Ask for people’s opinions

Empathy requires understanding the needs of others. But you can’t read people’s minds; you have to take the time to ask them about their wants, needs, and opinions. Taking action in this area goes a long way to demonstrating that you care and creating a compassionate work environment. 

In other words, as a leader, acting with empathy means involving your team in big decisions. Interestingly, a Salesforce report showed that employees who feel their voice is heard are 4.6X more likely to feel empowered to perform their best work. Employees are more productive when they feel they are being heard.

Of course, that’s not to say every single decision requires your entire team's final approval. Nevertheless, gathering feedback and input from your team is a great way to show that you value their opinions and perspectives. 

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3. Be proactive and offer assistance

Being responsive and available to your team is the cornerstone of empathetic leadership. But it's not enough to express to your employees that you are available and then proceed to disappear into your own world. 

If you don't show employees you care, it may be difficult for them to trust and come to you. A core component of building trust is showing you care about your employees through your actions. Not just your words. 

In other words, instead of simply stating you're available to them, why not show them? For example, an empathetic leader is sensitive to the climate of a team and can feel when their team is stressed or if there is tension. In this case, they will take the time to ask questions, listen, and find out how they can help. Empathetic leaders are proactive. They won't sit back and wait until a fire is burning to take action; they will try and catch the ember before it turns into a fiery blaze. 

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4. Show interest in employees' goals and development

As a leader, you know that employees are much more than what they produce for your team. They have their own dreams, goals, and aspirations. They have their own passions and interests. Leading with empathy means getting to know your employees on a deeper level and supporting their career development.

That said, "employee career development" can feel like a vague, ambiguous goal. But it all starts with a conversation. It involves getting to know your employees, what skills they want to grow, what they are passionate about, and what long-term goals they want to achieve. 

You have to set aside time for these conversations, which can be hard to do when a million other tasks are competing for your time. Yet, it makes your effort even more meaningful. When employees see how busy you are but still make the time to discuss their development, that will go a long way to making them feel valued. 

5. Be flexible and understanding

By its very nature, work entails structure and process. A team can't achieve results, and a large-scale organization can't function without guardrails. 

But, like all things, structure exists on a continuum. A need for structure can veer into inflexibility and rigidity if taken too far. Cultures like this undermine caring, empathy, and understanding.

For example, if employees come to you with a problem or concern, and you respond to them with, "That's just the way things work" or "That's the policy," without offering them any solutions or thinking deeper about the root problem at play. Such extreme inflexibility will undoubtedly make them feel ignored.

Being flexible and understanding means trying to devise a solution that benefits everyone. Even if an issue is out of your control, it also means validating your employees' issues and concerns. In other words, being flexible shows you care about your employees not just as workers but as individual people. 

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6. Share your appreciation

Recognizing and appreciating employees' efforts is one of the best ways to show them you care. On the flip side, one of the quickest ways to have an employee feel ignored is to minimize their efforts and take their contribution for granted. 

It's not enough to just praise the end result, like saying, "Good job on X." Vague and superficial praise can feel just as empty as not giving praise at all! Employees want to be appreciated for more than just ticking something off their to-do list. They want to feel special for their unique skills and contributions.

There were a lot of smaller steps and efforts that led up to that final achievement. People want the behind-the-scenes efforts to be appreciated. In short, employee recognition is not just about the end result. Taking the time to offer employees detailed and impactful recognition is the essence of empathetic leadership.

The Dangers of Too Much Empathy

When you think about a toxic work culture, niceness and empathy might not be the first things that come to mind. Typically, you might conjure up an image of nasty coworkers spreading negative gossip and arrogant managers lashing out at employees. 

Yet, the reality is that unhealthy work cultures can manifest in various ways. The stereotypical competition-driven environment is just one example. Cultural problems can often hide behind a cheerful exterior. Where even empathy—when excessive, can prove harmful.

Can empathy go too far?

Renowned leadership expert and best-selling author Kim Scott contends that empathy, if taken to extremes, can become unhelpful.

In her book Radical Candor, she coined the term "Ruinous Empathy" to describe the tendency of bosses to be overly nice but not genuinely kind. This occurs when leaders have a desire to care personally but a low willingness to challenge employees directly.

According to Scott, challenging employees is the key. It can be difficult in the short term and might feel cruel, but it's actually the kindest thing you can do.

Challenging people shows that you care enough to point out when things aren't going well. Most employees are hungry to grow, evolve, and be challenged. So, if you fail to challenge them, you will not only deprive them of the opportunity to grow but potentially create an environment of toxic positivity in your company—this can be just as damaging as an overly cutthroat environment. 

Organizational psychologist Adam Grant discusses a similar view in his model, The 4 Deadly Sins of Work Culture. He calls these types of overly nice work culture "cultures of mediocrity." In these cultures, "people are so worried about getting along that they end up forfeiting good work."

In the end, empathy is critical. It's a great thing for leaders to make sure everyone feels happy and gets along. But in any business, tough feedback or difficult decisions must be made. And if leaders forgo good work out of fear of creating disharmony or conflict, that's when this tendency to be nice is taken too far.

‍Final Thoughts‍

Leaders have long struggled with the conflict between empathy and efficiency. But as you can see, either end of the spectrum can lead to problems.

On one hand, being overly concerned with efficiency can lead to a cold, detached climate. Employees may feel like mere production units when their feelings and individual needs are not met with flexibility and understanding. Pursuing results without recognizing the human element can lead to burnout, decreased morale, and turnover. In the long run, this can be detrimental to success.

But the other extreme has problems of its own. For example, a desire to be too considerate prevents leaders from giving constructive criticism and needed challenges. As a result, "Ruinous Empathy" can emerge. Taken to an extreme, the fear of creating conflict can lead to a culture of mediocrity, where people are afraid to voice opinions or push boundaries. This climate can also stifle performance, growth and innovation.

Ultimately, leaders must strive to balance empathy and efficiency. It's not one or the other. When organizations learn to balance these two competing priorities, a thriving and productive organization is most likely to emerge.