COMPANIES in the region are cancelling Christmas, according to new research.
Almost a quarter of small and medium-sized business owner managers in the south east have broken the news to staff that there is no budget for the Christmas party this year.
According to the latest Close Brothers Business Barometer, a total of 24 per cent of respondents in the region said they planned to axe their company’s Christmas party, with a further 28 per cent saying that they would go ahead with their party but that it would be on a smaller scale than usual.
Michael Cox, regional sales director for Close Brothers Invoice Finance in the south east, said: ‘It would appear that many businesses are still in austerity mode.
‘If money is tight then of course you need to look closely at your expenditure.
‘However, if businesses do away with this type of reward for staff, it could affect morale and productivity. It’s important to find an alternative way to recognise their contribution and therefore maintain motivation coming into 2013, which looks set to be another tough year.’