Risk Management Tips for Holiday Parties

Jared Pope

|

December 19, 2024

Holiday Party Risks

While many consider this the most wonderful time of the year, the holidays can present a variety of opportunities for increased risk, particularly when it comes to workplace misconduct. Workplace misconduct can include anything from harassment, theft, bullying, sexual harassment and discrimination.

With 81% of employees planning to attend workplace parties, and employers should proactively mitigate risk of misconduct, while also putting processes in place to respond should any misconduct occur. Since these events often occur after hours, at off-site locations and with alcohol involved, predicting potential issues can be particularly challenging. By planning ahead and having a proper response, organizations can protect their employees and their organization. Left unhandled, misconduct can expose an organization to costly reputational damage, litigation and more.

As a standard process, organizations should establish clear policies and protocols around social events that outline proper etiquette and set clear expectations. These policies should not only include rules for employees to follow but also serve as guidance for the individuals planning the party. Establishing such guidelines can help make sure that the event is both enjoyable and professional. In addition, organizations should consider the following actions to mitigate risk:

Stay Inclusive When Celebrating

While a “Christmas Celebration” party is likely well-intentioned, focusing solely on one holiday can unintentionally alienate employees who do not celebrate that specific holiday. According to AP NORC, 92% of Americans will celebrate Christmas, 5% will celebrate Hanukkah and 3% will celebrate Kwanzaa. Of this, 5% will celebrate more than one holiday. With this in mind, organizational leaders need to be considerate of all religious beliefs and cultures while planning a work celebration.

Consider opening up the conversation to hear what different employees celebrate and give them the platform to share with their fellow employees if they would be interested. Through an inclusive approach, such as potentially branding the event as a “Holiday Party,” employers can foster a more welcoming and inclusive environment and show all employees that they are seen and valued.

Moderate Alcohol Consumption

We have all been there—what started as one or two drinks to boost social confidence quickly turned into three or four, leading to an embarrassing moment of oversharing or acting inappropriately. According to a recent survey, only 12% of Americans avoid alcohol at their holiday work party while the other 88% have anywhere from one to four drinks. Knowing that most employees will partake in the drinking festivities, it is important that employers have a clear plan in place.

While a few holiday cocktails with coworkers can be a fun way to bond, overindulging can quickly escalate into various forms of misconduct, including harassment, violence, safety violations, discrimination, drinking and driving and other unwanted incidents. In order to avoid these risks, employers planning to serve alcohol at holiday events should implement clear guidelines to help moderate consumption.

For everyone’s safety, these guidelines could include offering drink tickets at the door, hiring trained bartenders to monitor guests’ alcohol intake or even offering a mocktail option. By taking these precautions, employers can be sure that the celebration remains enjoyable and free of alcohol-fueled incidents.

In addition, a week or so ahead of the big event, employers should remind employees of expectations for the event, further mitigating the risk of any type of escalation.

Maintain a Level of Professionalism

A recent report found that around 14% of employees regret saying or doing something at a workplace holiday party. While workplace parties are meant to be fun, stress-free celebrations, that does not mean professionalism gets thrown out the window. It is important to keep in mind that while this is a party, it is still in a professional setting. Offensive or discriminatory jokes that make others uncomfortable are never acceptable—especially at a work-related event.

To maintain a positive environment, employers should remind employees of expectations and reinforce the code of conduct. After all, a workplace party is still a part of the workplace, and jeopardizing a career is never worth a few hours of fun.

Be Prepared

Employers play a key role in fostering a positive workplace culture and embedding organizational values within their teams. Unfortunately, despite preventative measures, misconduct including harassment and discrimination can still occur. With this in mind, it is critical that organizations are prepared for how to appropriately address and respond to these costly incidents. According to the EEOC, victims of discrimination received $665 million in monetary relief in 2023 alone.

Should a misconduct incident occur, at any time, organizations must have clear processes in place for employees to report what they experienced or witnessed. Often, particularly as it relates to workplace social events, it can be uncomfortable for an employee to report misconduct due to fear of retaliation or other responses from fellow colleagues or the organization. Therefore, organizations must have a safe and secure reporting process, unbiased investigations and timely resolutions for any incident of misconduct.

Employees must feel they can safely report, anonymously or nonanonymously, what they experienced and know that their report will be thoroughly investigated. By utilizing third-party resources or unrelated team members, organizations can mitigate the risk of unintentional bias that may sway investigations. And, finally, organizations must resolve incidents quickly, preventing the issues from festering, which can cause employees to take outside action such as litigation or publicity.

Holiday parties are a valuable opportunity to celebrate achievements, strengthen employee bonds and foster a positive workplace culture. These events offer a chance to acknowledge employees’ hard work, boost organizational morale and show appreciation for their contributions throughout the year. With a proactive plan in place to mitigate any risks of misconduct, holiday parties can build a sense of camaraderie, enhance employee engagement and create lasting memories. However, these celebrations must remain inclusive, respectful and professional to avoid misconduct in order for the event to be a success.

Jared Pope is the founder and CEO of Work Shield.