When Priya Gupta’s company became a Rs 100 crore business, the milestone called for a celebration, followed by the announcement of rewards, and a surprise. The next day, a pizza party was organised where every employee was given the choice of ordering his/her favourite pizza without any restriction on cost.
However, Gupta expected more. “Offering pizzas is the last thing an employee wants for a milestone that is purely monetary. What about cash rewards? At least shopping coupons,” she complained, adding that the HR could have come up with a more “useful prize” for her hard work.
Indore-based Prateik Patidar, who works for a real-estate firm, also had a similar experience, but from a manager’s point of view. When the Holi festival was near, he proposed cash rewards to HR for the sales team, which had performed “exceedingly well” in that quarter.
However, HR insisted and later executed a wine and dine party, on a Friday evening. “My colleagues bashed the idea and I had to omit the detail that I was the one who initiated the idea,” Patidar said.
Despite “party” being the keyword, why do employees resent non-work workplace activities? And why do HR departments appear so tone deaf?
Who do pizza parties serve anyway?
Amit Sharma, currently an HR leader in a multinational IT consulting firm, who has dealt with employee rewards for more than five years, said there is a golden rule for any benefit. If it doesn’t fall under the three categories listed below, always pay cash.
- If the “perceived value of the benefit is greater” than what the company pays it should be a benefit. For instance, health insurance is usually expensive, so, if a company offers it, employees value it more.
- If a company wants to “give a message” using a benefit like a concierge service (travel bookings and tours) it sends out a message: Just focus on work. We’ll take care of the rest.
- Wellness-related benefits showcase a firm's desire to promote healthy habits.
“So, if a Pizza party is for engagement with no clear objectives, it is a waste of money. Just pay the cash. But if it serves a purpose then they should consider it,” Sharma said.
ALSO READ | Rs 1 lakh for an MNC job: How 'helpers’ game corporates
He said there is conventional wisdom that a successful delivery calls for a party and no one questions it. “No one looked back and said this is what we spent on this party, what did we get out of it? In the 21st century as we embrace diversity, many evolved organisations have realised that office parties are not for everyone,” he added.
According to Sharma, most organisations still subtly force people to show up under the garb of networking and engagement and even fun. “There are many employees who get terrified at the thought of office parties. Add alcohol and it gets worse.”
Leaders love parties because it is a huge ego boost and the importance they get is insane, he added.
Why are we still getting pizza parties?
C-suite leaders feel such parties and get togethers provide opportunities that ultimately help companies build a positive culture.
Sumit Sabharwal, CEO of TeamLease HRtech, feels such events are sometimes necessary for employees to open up to each other and become comfortable in their work environment. “It’s also a great opportunity to recognise employees for their hard work and show appreciation for their contributions,” he said.
A different perspective
Some industry experts feel money is important but not the sole motivational element to retain employees. The organisational culture and sense of belonging people feel top the charts of engagement models.
In Chetna Gogia’s opinion, employees love and value acts of appreciation over money the same way they value friends who will treat them to lunch.
“Employers may skip cash or other tangible rewards because they may not have the same emotional impact as a shared experience like a pizza party,” said Gogia, CHRO of e-commerce enablement platform Gokwik.
ALSO READ | Employees turning social media influencers is the next India Inc challenge after moonlighting
Nevertheless, giving employees choices remains paramount. It is a tightrope HR and line managers have to walk to ensure feedback by their employees on engagement modes is taken seriously.
“Pizza party or cash prize awards should be decided as per the situation. We generally tend to follow a set pattern. In my opinion, it should be based on person to person and situation to situation,” says Tirtha Roy Choudhury, Director of HR at Hotel Crowne Plaza, Greater Noida.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
