Many companies are opting to forgo the annual holiday party, choosing instead to schedule a luncheon, cookie or gift exchange or just give out gift certificates. It can be time consuming to plan and organize a holiday party, and there may be concern about the cost or liability of holiday celebrations.

Although there are many reasons not to hold a holiday party, there are still many benefits that a holiday celebration offers compared with a gift certificate.

A holiday party can bring employees together for team building in a more informal setting than the office. If you choose to include spouses and families, it gives employees a chance to have fun with their loved ones and bond with their coworkers. Including vendors or key clients thanks them for their business and help and creates an opportunity to cement relationships in a casual environment.

Honoring employees who are high achievers at the holiday party is a nice way to thank them for their accomplishments and build company morale. Recognizing achievements at the annual holiday celebration can be a tradition that employees enjoy and look forward to each year. It’s also a great time to celebrate company culture and acknowledge goals that were achieved throughout the year as an entire company. Recognition increases productivity and gives employees a goal to strive for throughout the year.

The holidays are a great opportunity to honor other cultural traditions and give employees a chance to learn more about each other and their cultures. Acknowledgement of holidays such as Hanukkah, Kwanza, or Chinese New Year can be incorporated into the company party with a specific menu, entertainment or décor designed to celebrate each tradition. Employees will feel that the company is invested in them when their personal traditions are honored.

Whether you choose to take your employees to brunch, host an ugly sweater party, or deck the lobby as a winter wonderland for employees to enjoy, holiday celebrations in the workplace are more important than ever.

Building morale, honoring employees and creating a supportive team atmosphere is so crucial because there is so much turnover in the workplace. Creating an exciting work environment keeps employees happy and productive. Holiday parties are a great way to accomplish these goals.