I’ve got a number of friends who work for big corporates (consulting firms, major retailers, banks, big 4, etc.) and many of them didn’t have holiday parties this year. Ya, ya, I know, the economy and all that. Hey, at dynamIt we bootstrapped. I’m very aware of costs and we’re doing our own hunkering-down considering the climate, but the LAST thing I’m cutting is a holiday dinner, or any company culture/motivation pieces for that matter.

Now, more than ever, people (clients/customers) are looking for value Value VALUE. Your people are the ones creating and delivering it. Yes, I’m sure they are happy they still have a job, considering the alternative, and that immediately makes/keeps them happy and doing their best every day, right? Cmon.

My point: Everything has a cost. Know the difference between a spend and a spendvestment. Keep your people happy and motivated. Invest in them, their morale, their personal interests and development. Invest in your culture (read: have holiday parties); find other fat to trim and save. Spending money on the pieces of your machine that have the ability to make a difference and be dynamic in a time when clients are looking for PODs beyond lavish conference rooms and peripheral fluff is a smart play. Something like a holiday party shows that you care about your people outside of their cubicles and their deliverables. It shows that you’re interested in their social needs and allows you to say Thank You. Plus, it’s probably tradition. Start cutting traditions and people start losing core organizational characteristics to root themselves in.

[Pics from dynamIt Holiday Dinner and also our Advisory Board Dinner will be in the first week of the new year. Ya, that's right, we're spending on people who create value. We've found tremendous returns so far...]

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11.18.2009 UPDATE

Great piece on extrinsic versus intrinsic motivators which I consider relevant: