Holiday partying meets a Scrooge’s economy

It's the stuff of water cooler legend and lore: the company holiday party. But with the economy still in the doldrums, this once-ubiquitous symbol of eggnog-filled and mistletoe-bedecked excess has been on the wane.

"People are a lot less frivolous," said Kelly Carr of MzKelly Events and Productions in Vancouver.

With companies watching their bottom line and workers nervously watching the unemployment lines, the annual holiday party has been scaled back, morphed into charity events or disappeared completely at many Clark County firms. The reining in of holiday merriment has translated into lean times for many area caterers and event planners, who report a slump in business ranging from 20 to 70 percent this year over holidays past.

Despite the declines, the company holiday party is a tradition worth saving, according to Greg Casella, president of the National Association of Catering Executives.

"The bottom line is people are still doing things, but they're not as grand as they used to be," said Casella, estimating that 70 percent of companies nationwide have scaled back their holiday parties.

Instead of inviting clients to an annual holiday event, Schwabe, Williamson & Wyatt, a law firm with offices in Vancouver and Portland, donated over $20,000 to area food banks this year.

"It's really in response to what's going on in the community," said Karen Kervin, director of client relations and marketing for Schwabe, Williamson & Wyatt. "There are members of our community who are suffering this year."

Greater Vancouver Chamber of Commerce CEO Kim Capeloto says he plans to host a home party for employees this year.

In years past, chamber employees were treated to a holiday party at a local restaurant. But difficult times have nixed GVCC's party budget just as chamber employees have forgone annual raises for the last two years and shouldered a heavier workload, according to Capeloto.

"That type of selfless support for an organization deserves recognition," said Capeloto, who will be cooking and prepping a meal and party for his employees. "We're trying to do a nice event on a shoestring budget."

Bucking this downsizing trend, United Natural Foods can be counted among the area's few remaining holiday party die-hards. The Ridgefield firm invested $7,500 this year to celebrate the season with a catered lunch for three shifts of workers, as well as gifts for employees.

"We value our associates and realize they are the key pin to the entire mission," said Jeffrey Graham, human resources manager at United Natural Foods. "If we treat them right, they're going to treat our customer right."

Other companies have morphed their company parties into a community volunteer event or opted to invite employees to holiday parties that benefit nonprofit organizations, such as the Chamber CARES Campaign & Ambassador Holiday Charitable Giving Breakfast held in Vancouver on Friday, Dec. 4.

While cutbacks in event budgets are understandable as many organizations struggle to cut costs, it's important not to ax company festivities entirely, says Jerry Goodstein, a professor of Management and Operations at Washington State University – Vancouver.

The social aspect of the parties, a time to gather, build culture and recognize employee efforts, is vital to a robust organization, according to Goodstein.

"If it's possible for organizations to keep these parties going, it's a really good idea to do it," Goodstein said. "Once you stop doing it, it's easy to go away. And once you start losing those rituals that bring people together, the culture is lost and you lose something that's really important about the organization."

Goodstein gave an approving nod to Capeloto, hosting a party for his employees at his home at his own expense. However, he said there are other frugal ways to celebrate the holiday season with employees on a budget.

For instance, the timing of a holiday party can vastly affect an event's cost, according to Kelly Hoeppner of Simply Thyme Catering in Vancouver. According to Hoeppner, a breakfast or lunch event costs an average of 20 to 30 percent less than a company dinner event.

And working with a caterer may save cash as well. According to Carr at MzKelly Events, a caterer's discount and referrals can translate into lower overall event costs. "Networking is huge right now," Carr said.

And, of course, there's the traditional pot-luck holiday feast – an event where employees take an active role.

Whatever the holiday party situation, communication is key, according to Goodman. If employees understand the reasons for a scaled-back or cancelled party, they're more likely to be supportive of the organization and its struggles, he said. "There's the notion of shared sacrifice."

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