Advertisement
End-of-year parties or a 13th-month salary: What should employers prioritise?
21st November, 2025 09:31 PM
As the festive season approaches, many employers face a familiar dilemma: should the organisation spend its end-of-year budget on a staff party or channel those funds into a 13th-month salary for employees?
Both options carry value, but choosing the right one depends on company culture, financial realities, and what employees need most.
End-of-year parties
End-of-year celebrations have long been a tradition in many workplaces. They offer staff an opportunity to relax, bond, and celebrate milestones achieved throughout the year.
Benefits of end-of-year celebrations
Some of the benefits of the end-of-year parties include:
- Boosting morale: After months of hard work, a fun event can restore enthusiasm and strengthen team cohesion.
- Strengthening company culture: Social interactions outside work help reinforce organisational values and build relationships.
- Recognising achievements: Public acknowledgement during such events can motivate employees for the new year.
However, parties can also be costly, especially for small or financially strained businesses. Some employees may appreciate them less if they are dealing with economic pressures or rising living costs.
13th-month pay
On the other hand, the 13th-month pay is an additional salary granted at the end of the year. While not mandatory in Kenya, many organisations worldwide use it as a form of financial appreciation.
Advantages
Some of the benefits of the 13th-month salary include
- Direct financial relief: Employees can cover holiday expenses, settle debts, or save for the new year.
- Higher motivation and loyalty: Monetary recognition often feels more tangible, leading to increased job satisfaction and commitment.
- Improved retention: In a tough economic climate, such benefits can reduce turnover and strengthen employer-employee relations.
Yet, offering a 13th-month salary may not be sustainable for companies already struggling to meet their financial obligations. It requires careful budgeting and long-term planning.
What are employees prioritising today?
Recent workplace trends show that many employees increasingly value financial stability over social perks. With rising living costs, economic uncertainty, and personal obligations, an extra month’s pay may provide more meaningful impact than a one-day celebration.
Younger employees, however, often appreciate environments that foster community and fun, suggesting that both options can be valuable depending on workforce demographics.
However, some employers are adopting a hybrid strategy—hosting a modest, cost-effective celebration while offering a smaller bonus or token financial appreciation. This ensures team bonding without ignoring employees’ financial needs.
Possible middle-ground solutions include smaller in-house celebrations, gift vouchers or shopping hampers, savings contributions or partial bonuses, and team-building activities instead of elaborate parties.
Final thoughts
If employees are facing financial strain, a 13th-month salary or any monetary bonus may be the most responsible and appreciated decision. If the organisation seeks to reinforce culture and celebrate achievements, a well-planned end-of-year event can be impactful.
Ultimately, the best employers strive to balance appreciation with practicality, ensuring that whatever option they choose genuinely benefits their team.
