Strategic corporate end of year events that drive team performance

What if your end-of-year celebration budget allocation could genuinely boost long-term team cohesion and performance? Walk into any thriving office in early January and you’ll notice something different. There’s genuine energy, not just post-holiday politeness. Teams aren’t just going through the motions – they’re actively building on connections from year-end celebrations, genuinely excited about making the year ahead even better.

Recent research published in the Journal of Management confirms what forward-thinking companies already know: workplace rituals are ubiquitous in modern workplaces, and for good reason. Research on such workplace rituals, including year-end events and holiday celebrations, suggests that participation is generally a positive experience for employees, one that improves participants’ subsequent attitudes and behaviours.

As far as workplace rituals are concerned, year-end events occupy a unique psychological space. They happen when people are naturally reflecting on achievements and setting intentions for the future.

“Year-end events represent one of your organisation’s most significant opportunity to influence team dynamics,” explains Mike Walker, Managing Director at MGN Events. “Unlike routine meetings or quarterly updates, these experiences occur at a crucial psychological moment when people are already thinking about what’s been accomplished and what’s possible.”

Unfortunately, many workplace celebrations fall flat.

The Journal of Management reveals that employees often have negative reactions to company holiday parties, with many reporting that they would prefer to skip these annual rituals and some disclosing having lied to avoid attending.

The issue isn’t with year-end celebrations themselves—it’s with how they’re designed.

Common pitfalls that drain rather than energise teams:

• Obligation over excitement: Many workers feel pressure to attend these parties, and report that instances of awkward or inappropriate interactions are common
• Poor event design: Complex rituals, which involve high levels of social interaction over extended periods of time, may not always yield positive experiences and may elicit negative reactions
• Cultural misalignment: Events that don’t reflect diverse team needs—from generational differences to cultural backgrounds – missing the opportunity to create genuine inclusion within British workplace traditions
• Lack of strategic thinking: Treating celebrations as afterthoughts rather than strategic investments

The encouraging news? Researchers have found that rituals have been associated with increased feelings of work meaningfulness, a stronger sense of organisational values, and heightened camaraderie.

What separates year-end events that energise teams from those that drain them? Experts explain the concept of emotional energy – the “drive that individuals feel for engaging in action” – as theorised in Interaction Ritual Theory.

In organisational settings, the most meaningful expression of emotional energy is employee engagement, which shows up as peoples dedication of their of personal resources toward organisational goals.

“Successful year-end events tap into people’s natural desire to belong to something meaningful,” explains Mike Walker, Managing Director at MGN Events. “When people leave these experiences feeling genuinely connected to colleagues and excited about shared goals, that energy carries forward into daily work.”

The four elements of genuinely engaging year-end celebration events

Yim et al. (2025) identify four critical dimensions that make workplace rituals effective:

1. Physical density (participants are located together)
2. Boundedness (participants primarily interact with other participants)
3. Focus of attention (all participants are focused on the same thing)
4. Commonality of emotional mood.

“These four dimensions explain why some celebrations energise teams while others feel like obligations,” continues Mike. “The key is creating experiences where people are genuinely present together, focused on shared achievements, and feeling authentically positive about the future.”

What’s more, there’s compelling evidence about the power of workplace social activities. A survey found that 53.9% of employees stated that fun supplies satisfaction during working hours, whilst 54% regarded fun improves employee creativity and group cohesiveness.

The benefits extend beyond immediate satisfaction. Halawi (2024) shows that 62% of employees engaged in fun activities had no sick leave days in the past three months compared to 38% who didn’t have fun at the workplace. Moreover, 55% of the employees who have participated in a fun activity in the last six months are more likely to feel creative than 33% who didn’t.

“When companies invest genuinely in bringing people together, teams respond with increased loyalty and engagement,” explains Mike. “The magic happens when you move beyond entertainment to connection. Research shows that when people form genuine workplace friendships, they’re more willing to get more deeply involved at work or volunteer for extra projects—not because they’re required to, but because they want to.”

The business case for investing in thoughtful year-end events is compelling. A recent field experiment with 100 offices and found that structured social activities created measurable improvements in how connected people felt to their colleagues. Even more significantly, people formed genuine friendships at work – reporting nearly twice as many close workplace relationships after participating in the activities.

Most importantly for retention:

The study found something remarkable about staff loyalty. While typically 10% of employees leave within three months, this dropped to just 6% after the social activities programme – a 40% reduction in turnover. Given that replacing someone can cost thousands of pounds in recruitment and training, this represents substantial savings.

The mechanism behind success

The researchers wanted to understand why the activities worked so well. They tested four different explanations and discovered something interesting: when companies genuinely invest in creating enjoyable experiences for their people, employees naturally want to give back. People became more willing to volunteer for extra projects and contribute beyond their basic job requirements – not because they had to, but because they wanted to.

The most effective year-end events don’t just celebrate – they build foundations for future collaboration. Experts explain that their intervention builds on the sociological and psychological literature highlighting the role of shared enjoyment in promoting social bonds. The idea is that collective emotions act as ‘the glue’ of a group.

Rather than treating year-end events as obligatory corporate theatre, successful companies approach them as strategic cultural investments with broad cultural appeal. In the study, researchers tested alternative options to the traditional year-end event format and found that the following 10 activities offered were thought to be broadly accessible, requiring no specific skills and appealing to a wide range of employees. These included a movie night, a singing competition, games, and team-building activities.

Your immediate next steps:

1. Audit your current approach: Which year-end experiences do people genuinely look forward to? Which feel like obligations?
2. Apply research-backed design: Focus on activities that promote shared enjoyment and collective emotions that act as ‘the glue’ of a group
3. Ensure broad accessibility: Choose activities that are broadly accessible, requiring no specific skills and appealing to a wide range of employees
4. Measure the right outcomes: Look for increased camaraderie, attachment to colleagues, and stronger workplace friendships as well as retention, productivity and satisfaction

At MGN Events, we’ve spent nearly two decades perfecting year-end events that genuinely transform workplace culture. We don’t just plan events – we architect moments that strengthen how teams connect, collaborate, and perform together. We do this as part of an organisation’s overarching strategy to provide a rewarding, engaging and sustainable culture.

Our research-informed approach:

• Evidence-based design: Every element draws from peer-reviewed research about genuine connection and team performance
• Cultural sensitivity: We understand British workplace dynamics and multigenerational team nuances
• Authentic experiences: We create moments where people connect as humans, not just colleagues

Founded in 2008, our story began when directors Mike and Neil established MGN Events as creative partners focused on details that matter. We’ve evolved into a multi-award-winning team working with globally recognised brands.

Applying research through creative excellence

Our approach isn’t just about understanding the theory—it’s about bringing research to life through unforgettable experiences. Here’s how we’ve successfully applied these principles:

Creating 'physical density' and 'shared focus':

For a tech company’s 200-person Christmas celebration, we secured Sky Loft on the 28th floor of Millbank Tower. The breathtaking London skyline views created an instant sense of collective wonder, while the champagne reception ensured everyone experienced the same moment of celebration together – exactly the conditions researchers identify as crucial for effective workplace rituals.

Designing 'broadly accessible' activities:

When a corporate client wanted to move beyond traditional celebrations, we transformed their headquarters car park into a fully heated Wild West saloon. The interactive elements – 60 hay bales, live country band, cowboy dancers, and a life-size jail where colleagues could ‘rescue’ each other for charity – perfectly demonstrate experts’ principle of activities that appeal to wide ranges of employees while fostering reciprocity toward the firm.

Building 'genuine connections' through innovation:

For a client wanting an alternative to traditional Christmas parties, we created a futuristic celebration at Leadenhall Building’s Landing Forty Two. Female robots mingled with guests, contact jugglers performed otherworldly tricks, and LED pixel dancefloors created an ever-changing environment.

The result? A celebration that went “way beyond turkey dinner and paper hats” – creating exactly the kind of memorable shared experience that Halawi (2024) shows drives long-term workplace creativity and engagement.

Access our case studies to learn more.

Proven excellence:

“I just wanted to thank your entire team for your excellent work on our event. The venues and execution as well as the attitude you bring just makes things happen! It’s fantastic to work with an agency that has the same attitude as we do.”
Opera, Bristol

“Thanks again for all of your help with everything yesterday, we massively appreciate yours and the team’s support and it has been a big success!”
Trainline, Central London

“It was safe to say the event was a hit and we’ve had great feedback. Every activation hit the mark and combined fun with a meaningful message.”
Bidwells, Central London

The companies that will thrive into the future understand that year-end events represent unique opportunities to strengthen team dynamics that drive everything else. Researchers found that healthier work environments mitigate risks such as burnout and workplace injuries, ensuring sustainable organisational growth.

The research is clear, the approach is proven, and the opportunity is ahead of you.

As you plan for December 2025, remember that strategic year-end events aren’t just celebrations – they’re investments in workplace culture that pay dividends throughout the following year. When your year-end events become catalysts for authentic connection and shared purpose, employees show greater willingness to contribute beyond their basic roles, strengthening the entire organisation.

Book your year-end culture discovery session and explore how we can help you create experiences that genuinely strengthen team performance. Because when your year-end events become catalysts for authentic connection and shared purpose, extraordinary results become possible.