Why the company Christmas party could cook your goose

Let old celebrations be forgot and never brought to mind. Even if your organization is faring better this year, you may still want to forgo the festivities.

Of course, if your company’s still seriously struggling financially, there will be no calls to the caterer this year.

And many companies are in that boat: Overall spending on holiday parties is being cut by about 20% across the board according to experts in the industry.

Still, this year is considered “the year of the comeback” for corporate celebrations.

But even if things are starting to look up, it may still be a good idea to pass on the holiday celebration this year (or at least make it look a bit different).

Some very large companies have made it clear they’re taking another pass this year. Goldman Sachs, for example, recently announced that despite a major profit uptick in the third quarter, it still won’t hold its holiday party.

The reason? Goldman plans to pump a large chunk of those profits into employee bonuses. The financial giant thinks throwing a lavish party on top of that would be a PR nightmare.

Chances are, your company doesn’t attract that kind of spotlight. But organizations of any size and in any industry might wind up following its lead.

If your company has endured anything from downsizing to a salary freeze these past eleven months, throwing a year-end celebration could aggravate the folks who’ve been impacted.

That doesn’t mean the holidays have to go unmarked around the office.

Consider some alternatives

Companies can get creative to keep a festive tone but still keep budgets in check.

Take a look at what some of your peers are trying:

• Try a potluck party. Have staffers who like to cook or bake? Let everyone bring something in to share the holiday cheer without busting the budget. Companies that have tried it say it boosts camaraderie better than a traditional celebration.
• Donate the party money to a charitable cause. Letting employees vote on the charity your company supports helps everyone feel involved.

What’s your company’s plan for a holiday celebration this year, and do you agree with it? Share your thoughts here.