For small businesses to achieve success, company leaders must make employee engagement a high priority. This engagement directly impacts your team’s satisfaction, and can boost productivity and talent retention. One way enterprises try to nurture employee engagement is through company events. While work parties can be enjoyable for team members, they can also be a double-edged sword.

How you execute a corporate event to enhance worker engagement can make it a success or failure. The truth is many team members have different opinions about them. Some prefer to remain at their desks, while others would rather head home to unwind or spend time with family. So, how can you ensure every gathering can be appealing while fostering high engagement? Understanding the benefits and challenges of hosting is crucial to better-adapting gatherings toward employees’ interests.

Fosters and Grows Relationships

Company events are a great way for employees to interact because they create opportunities for casual conversations where coworkers can learn more about each other. As such, they can form strong bonds and let their relationships blossom into lifelong friendships.

These meaningful interactions directly impact employee engagement, whether it’s a team-building exercise or social gatherings. Workers who feel a stronger connection to their colleagues are more likely to feel invested in their work and the brand’s success. In fact, studies show organizations with highly engaged staff experienced an 81% decrease in absenteeism.

Builds Team Cohesion

Hosting a corporate event is vital in creating team cohesion. Through collaborative activities and shared experiences, team members can work toward common goals and develop a sense of unity. This shared effort helps break down silos, enhance communication and nurture a more collaborative team.

In-person and virtual events work either way. However, virtual gatherings have become increasingly popular since the COVID-19 pandemic. One of the top reasons people attend online meetings is to learn new skills — in fact, research shows 80% of employees participate for educational purposes. However, the second most common reason is enhancing professional connections.

Promotes Company Culture

Whether it’s an outing or an in-office celebration, an event effectively brings the corporate culture to life. Bringing employees together can remind them of your business's mission and values. As such, team members from different departments and levels can feel a shared sense of purpose and belonging.

When everyone identifies with the brand’s culture, people feel more connected to its objectives regardless of their role. It can make your business feel more inclusive, strengthening cultural aspects like creativity and collaboration. As a result, your organization can succeed at reinforcing itself.

Challenges of Company Events

Many workers may have a positive outlook on company events, but it can be less than ideal for others. Here are the following reasons why.

Participation Pressure

Some organizations feel the need to make their events mandatory. They may believe that if they force their teams to come together, they will likely engage with one another. However, creating a sense of obligation can cause resentment among some employees. This pressure can be particularly higher for those who prefer to keep their personal lives separate.

Yet, coercing your workers to attend can lead to negative attitudes and decreased morale. In turn, it could negatively affect engagement levels to the point of turnover — and it costs an average of $5,000 to replace each team member.

Interference With Personal Time

Many employees value their time outside of work and consider it crucial to maintaining a healthy work-life balance. On the other hand, they may feel they see their co-workers enough throughout the workday, so they would rather go home to decompress.

Potential for Inequality

Another challenge of company events is the potential for inequality. In some cases, many people express how management has viewed them less favorably due to not attending a gathering. Others have felt they missed opportunities to climb the corporate ladder for the same reason. This easily creates an environment of unfairness because some people feel marginalized if they are unable to attend.

Adapting Company Events for Today

Corporate events can reap tremendous rewards when you do them the right way. To overcome their challenges, incorporating strategies that align with today’s standards is vital.

1. Host During Work Hours

Hosting events during working hours is crucial for staff who would rather stay home than attend one after-hours. It can encourage them to participate since it avoids encroaching on their personal time. Try to schedule at strategic times — such as during lunch breaks or as part of regular meetings — for seamless workday integration.

2. Combine Virtual and In-Person Events

Make corporate gatherings more flexible by accommodating remote and on-site employees through virtual and in-person meetings. A hybrid event promotes inclusivity and ensures more participation.

One way to offer this is by incorporating physical and digital components. For instance, you could host an in-person social event that complements online activities or presentations.

3. Make Participation Optional

Rather than making events mandatory, let workers know their attendance is optional to reduce pressure and make activities more enjoyable. Plus, it will reduce feelings of burnout and foster a healthier workplace environment. Once you announce an upcoming gathering, ensure you encourage your team members to go, but remind them that it is voluntary.

4. Pay Employees to Engage In Social Events

Consider offering payment for social outings that allow people to choose how they engage with their colleagues. One remote-first software company, Ethena, provides a stipend of up to $100 per month for its employees. They can go anywhere to socialize with coworkers and save stipends or pool funds for more costly outings.

Upholding a Balance Within Company Events

Corporate events can have a successful turnout when you execute them correctly. However, leadership needs to understand the dynamics to adapt and promote engagement. While some workers may want to sit out to enjoy their personal time, you can increase participation by fitting the needs and preferences of others.