My team made an early exit from March Madness this year. Despite that, I’ll still be watching the run-up to the Final Four. I have to. I’m a North Carolina girl, and when you grow up in the Tarheel State, there are two things that you are absolutely expected to know: who’s playing in the NCAA tourney and where to find good barbecue.
I grew up watching ACC basketball religiously. And I mean that in the most literal sense. March is the only time of year in the South that you can be assured that church will end promptly on a Sunday. And at school? I distinctly remember having the game on during in biology class (come to think of it, maybe that’s why I ended up in law school and not med school).
That may not be as extreme as it sounds. This year, More than 40 million Americans fill out tournament brackets, according to the American Gaming Association. According to Challenger, Gray & Christmas figures that if you apply the current employment to population ratio to that number, 23.7 million workers will fill out brackets for this year’s games. A 2012 MSN survey found that 86 percent of all workers will devote at least part of their workday to updating brackets, checking scores and following games during the tournament. The cost to employers could reach as high as $2.1 billion.
But instead of fighting the end of March Madness, some experts believe you should embrace it. Ben Wright, a Ball State marketing professor, believes that companies should integrate college basketball into the workplace. In fact, Professor Wright goes so far as to suggest allowing employees to follow games during work hours, saying, “As the popularity of March Madness has grown, it is nonsensical for managers to expect employees to enjoy the tournament only outside work hours. In fact, instead of blocking, banning or slowing down streaming capability during March Madness, many companies are encouraging employees to watch the games.”
It’s a smart strategy. Allowing your employees access to the games can create a fun atmosphere during the tournament – and it’s an easy way to offer perks to your employees which are tax-free for them and potentially deductible for employers.
One simple way to do it is to install TVs in common areas, like break rooms, so that workers can check games throughout the day – even those remaining evening games for those who work off-hours. It’s a tax-free benefit to your employees and depending on your available resources, may not cost the company anything. Even better? By making it easy to catch games on television, employees won’t need to stream the games. That’s good news for the company’s IT staff.
(That is, unless you work for the Pentagon which warned its employees: if you’re streaming video to watch your favorite player shooting free throws, you’re consuming network resources that could be served to support the Warfighter.)
If you’re planning on setting up a commonplace to watch the tournament, consider stocking it with snacks for employees to enjoy while they take a game break. Snacks that you provide for your workers on your own premises are also generally tax-free.
Depending on where you work – and the hours that employees might be at the company – you could even consider throwing a team-building party to watch one or more games. For tax purposes, an employer can throw a party with no tax consequences for the employees. And you don’t have to talk about Nigel Hayes or Tyler Dorsey to make it deductible. Unlike other business lunches and dinners, employees don’t have to “talk business” at any time during an office party to make it deductible to the company.
And go ahead, spring for the good pizza: you don’t have to be cheap. The cost is tax-deductible to the company so as long as the expense is reasonable. A company may not deduct expenses for entertainment that are “lavish or extravagant.” Spending should be consistent with the type and level of your company – think about what similarly situated companies might be doing.
Employers can also consider offering a free, company-wide office pool. If you offer prizes, keep them cash-free to avoid gambling and other income issues. Small prizes other than cash will typically be tax-free so long as they have a low fair market value.
And finally, don’t forget about the easy perks that won’t cost a thing: consider a super-casual Friday so that employees can comfortably wander out after work to catch the big games on TV. For employees working over the weekend, why not extend lunch or break hours a little to allow employees to catch the finals?
(For more on employee perks, check out this prior article.)
With a few days of the Madness left, it’s worth considering what you can do for your employees. Professor Wright says, “So, as we prepare for another year of buzzer beaters and upset wins, managers should be aware of the effects of March Madness on productivity, but focus more on the benefits and potential opportunities this time of year creates. The tournament pulls people together, allowing people to share very special moments. That makes for a better workplace.”