Are you killing corporate culture with budget cuts?

Every company has a budget, we get it.  Businesses can’t run properly without one.  And each year, the budget gets reviewed and cuts are made to keep spending in control.  But are the right cuts being made or the wrong ones?  Often it’s the wrong ones…

Companies will host picnics in the summer for families to bring their kids to or a Christmas party in November/December and celebrate then.  These parties are held to reward employees for all the hard work that they do all year long to keep the company going and being successful.

But what do I see time and time again?  The first thing that gets cut when a company does a budget review and wants to reduce expenses is the company party.  I will call up a client from last year and ask them what they had in mind for this year.  If their company is one of the unlucky ones to have had a budget cut, the response I get is a very somber “no sorry, no party this year – company doesn’t want to spend money on us, budget cuts”.

I can hear the deflated feelings in the voice of the individual on the other end of the phone.  The disappointment, frustration and anger that the one thing they look forward to all year as a reward for all the hard work, has just been eliminated.  These parties are also an opportunity for your employees to celebrate with their families.  It connects the outside world of work to the main reason they are working for you in the first place, to support their families.

So now I ask you….what is going to motivate the employees now to put in that extra effort – or as the corporate trainers of the world like to say – that extra 10%.

Absolutely nothing….

Those hardworking employees will now only do what is required of them to keep their bosses satisfied.  They are going to arrive right on time and leave right on time.  They are going to take their breaks and their full lunch – no more working through lunch.  There will be no extra effort into the work they do during they day.

All because the budget cut has now killed your corporate culture.

Employees want and NEED to be recognized for the hard work that they do.  They are away from their families 40 hours a week working for someone else.  They are not their own boss and the work they do is to earn a pay cheque to keep a roof over their head and food in the fridge.  Without any sort of reward or recognition, they will not want to put in any extra effort other than what is required.

So what can companies do?  Find a way to reward your employees.  Find somewhere else to save the $1,000 or $5,000 or however much you were spending on the party/picnic.  Still need to save some funds?  Then just cut back a bit on what you do – there are lot’s of ways to reward your employees and keep costs in line.  But please, do not cancel the one thing that makes your employees feel valued.

Afterall, if you take care of your employees, they will take care of your business and your customers which will result in higher sales and better performance.

For information on cost saving options for corporate events, please reach out to me at amber@amberdinda.com  A picnic or Christmas party can cost less than you think and at Par-T-Perfect we have lot’s of options for all levels of budgets!

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