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Benefits of Work Happy Hour on Employee Morale

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Work happy hours can become a popular tradition in many organizations. By offering employees a chance to unwind and socialize outside of the usual work setting, you can play an important role in boosting morale. With a more relaxed atmosphere, work happy hours can help build stronger relationships, improve communication and foster a sense of camaraderie among employees.

Did you know? Acknowledging and supporting the specific needs of your employees is essential to a thriving workforce. You can find scientifically backed ways to improve the wellbeing of your workforce by exploring our wellbeing resources.

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6 ways happy hour can boost employee morale

Introducing a work happy hour can have several positive impacts on employee morale. These can include:

1. Provides much-needed stress relief

By providing employees with a more informal gathering, you can give them the opportunity to relax and decompress after a busy day of work. Having a chance to step away from the office environment and connect with colleagues in a more lighthearted way can help reduce stress levels and prompt mental wellbeing.

2. Facilitates networking

Happy hour events are meant for coworkers to connect, including those that might not get to speak to each other regularly. With a more casual setting, employees can interact with colleagues from different departments or levels to build connections that might not occur during regular work hours. In some cases, networking during happy hours may lead to an exchange of ideas, collaboration on projects or even the development of professional relationships.

3. Strengthens employee retention

Making your employees happy, through happy hour or other initiatives, can help increase retention. When employees feel connected and valued, that can enhance job satisfaction and loyalty. When companies implement regularly scheduled happy hours, they can show that they value wellbeing and work-life balance.

4. Nurtures existing relationships

While you’re networking and meeting new people, don’t forget to touch base with those coworkers who you already know and appreciate. The workday is often filled with meetings, calls, emails and a whole host of other responsibilities that take precedence over chatting with your friends.

But happy hour is different because these more relaxed gatherings allow team members to connect and strengthen relationships without the distractions of a typical workday. In turn, these connections and conversations can build deeper bonds and a stronger sense of camaraderie among team members.

5. Serves as an opportunity to express recognition and appreciation

Use happy hours at work to show appreciation for your team. A quick “thank you” speech, a free catered meal, company swag, a cool raffle sponsored by local businesses and fun “best at” awards can add to your employee recognition program and serve as a supplement to other ongoing employee rewards programs.

6. Boosts creativity

During work happy hours, a more informal setting might help employees feel more comfortable about sharing ideas or thinking outside of the box. By stepping away from a more structured office environment, team members may be able to approach challenges from a different perspective and, when coupled with open dialogue, find fresh solutions or creative insights.

4 work happy hour ideas to consider for your team

As you put together your first work happy hour event, keep these ideas in mind as you plan.

1. Have an array of drinks

The issue of whether you should have alcohol or go completely alcohol-free requires a lot of thought and some cross-departmental consultations. It’s up to company policy, the opinions of upper management and what you think your team would appreciate most. It can also depend on day of the week.

For example, happy hour on a Friday night might feel more conducive to serving alcohol, while a Monday night office happy hour intended to celebrate a client win might be better suited to mocktails.

If you do include alcohol, there should be plenty of non-alcoholic beverages too.

2. Be inclusive

Make sure to invite everyone, whether that means you’re inviting everyone from a certain department, a certain project team or the whole office.

Inclusive planning also means planning events that include remote and hybrid workers. Virtual happy hours can be fun, or you can choose a day when virtual employees are required to visit the office anyway.

3. Come up with fun happy hour games

Trivia games, a scavenger hunt, virtual happy hour bingo, charades and third-party activities like escape rooms could all be great options for your work happy hour.

FAQs about the benefits of work happy hours

What does “happy hour” mean at work?

While the term “happy hour” traditionally refers to the span of time a bar or restaurant offers specials on food and drink, work happy hours don’t necessarily have the same meaning. Some office happy hours might include cocktails and snacks while others may have coffee and donuts or popcorn and sodas. The connecting thread is that all happy hours are an opportunity to relax and chat with coworkers.

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.