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By Sarah Bell
BBC News
Christmas office parties for some used to be lavish affairs, overflowing with
cocktail sausages and free beer, but now people are increasingly being asked to
pay their own way or face no festive bash. So are we seeing the death of this
yuletide tradition?
Once it might have been cheap champagne in a venue with a proper disco ball and
three different choices of canape at the company's expense.
Now you'll be lucky to cradle a glass of warm white wine in the corner of the
office with a Slade tape playing in the background and cheese and pineapple on
a stick.
Formerly a staple of the festive season, many firms have sided with Scrooge,
cutting or scrapping the funds for office parties as the effects of the global
downturn are felt.
Even the most cursory glance at Facebook shows that everyone from teachers to
lawyers, insurance brokers to journalists, is experiencing austerity on the
office party front.
In fact, fewer than four in 10 office workers will definitely have a Christmas
party this year, research by YouGov suggests. Of those who will be given the
chance to drunkenly dance in front of their colleagues, one in six said they
would contribute to the budget themselves.
One worker for whom Christmas is cancelled is Steve, who works for a telecoms
company.
"Officially it was because we made people redundant in November and it would be
insensitive, but it was mainly to save cash. In past boom years we have even
put everyone up in a hotel for the night," he says.
"The end result has been more drinking because people have gone out more to
compensate and there have been loads of leaving dos."
And it's not just lack of money, but also a question of appearances for many
firms.
Car firm Honda is not having a party for the first time, after 1,300 people
were made redundant at its Swindon branch. "We decided to show solidarity and
save as much money as possible," a spokesman says.
At the BBC, "in light of the current climate" the corporation's contribution to
staff parties has plummeted from 50 a head to zero in three years.
There is particular scrutiny of big banks, with angst over how quickly some
have returned to big bonuses. This is especially evident at the banks bailed
out with billions of pounds of tax payers' money. Northern Rock has not had a
corporate party for three years, while RBS is making a "small contribution".
"Our staff have worked very hard over the past 12 months. We won't waste bank
money but the longstanding tradition of paying a small contribution towards
staff parties has been judged appropriate," a spokeswoman said.
If parties are happening at all, it's behind closed doors, as the Lord Mayor of
London, Nick Anstee, recently indicated.
"I don't think there is any celebration because that's part and parcel of the
city responding to the environment in which we find ourselves.
"It would be very, very difficult for photographs or newsreels to be broadcast
showing city workers revelling over what they've got when the rest of the
country is suffering."
The end of extravagance means the hospitality industry could be facing the
quietest festive season since the 1990s.
"Despite the descent into technical recession, this time last year many
corporate Christmas lunches had already been booked, deposits taken, and to
cancel would have meant letting staff down," says Stephen Broome, director of
hospitality and leisure at PricewaterhouseCoopers.
"But faced with the economic realities of this recession company bosses have
now had nine months to refine policies and prepare staff for more restrained
celebrations this Christmas."
Concerto, a major events organiser, says bookings are down 20% and firms are
spending less money.
"This is a 1bn-a-year business, and there's significant money not being spent.
With small businesses the knock-on effect could be quite bad," chairman Mike
Kershaw says.
He believes it's happened because the media suggests it is inappropriate for
companies to throw parties, using terms like "squander".
"There's a perception that spending on events like Christmas parties is somehow
wasteful. The point I try to make to people is there's no such thing as good or
bad spend, there's just spend in the economy from one part to another. I find
this distinction bizarre," he says.
A "drastic" drop in bookings, 50% since last year, has also been felt by
Infusion Events.
One of its contracts is with a narrow boat party venue, once popular with blue
chip companies like HSBC and British Airways. Last year the boat had 25
bookings. This year it has five, director Rachid Radi says.
The change in climate is striking and catering firms worth 4m have gone under
in 2009 because the trade from the City has dropped away, he says.
"Whereas before you'd say to clients 'you're going to have this, this and this'
and they'd just agree, now you put it down on paper and they are cutting it
down to the bare minimum."
They are also ordering cheaper foods like chicken, rather than lamb, and
supplying their own alcohol.
While it may mean fewer red faces the next day as drunken memories flood back,
firms are warned that sacrificing festivities could have a destructive effect
on business.
The Chartered Management Institute has told employers not to use the recession
as an excuse for failing to acknowledge the efforts of their employees. It
commissioned a survey which found two-thirds of managers believe Christmas
parties are important in helping to improve "employee engagement".
"Particularly this year, people have been working twice as hard just to stand
still, it's important to show staff their efforts have not gone unnoticed. If
they feel they are going unnoticed they will feel 'why do I bother'," says
chief executive Ruth Spellman.
"The whole point of the Christmas party is saying thank you for all the things
they have done throughout the year, it's an appropriate time to draw a line
under a year and say 'let's move forward now'."
But all is not lost. Some companies are going for quality, not quantity, and
are thinking more about what they do, which actually means staff are having a
better time.
"We had a bigger one this year," says Matt Pitman, who works for insurance
brokers Bluefin in Leeds.
Its regional party was scrapped, instead his branch was given a budget, which
it spent on a party at Elland Road football ground with other companies.
"It was a big, posh, sit-down meal with bands and a DJ. So even though we spent
the same it felt like a much bigger do," he says.
There will be many others who have to organise their own bashes and pay for
their own drinks, but who will remain determined to have fun.
The spirit of the Christmas party lives on.
There's a perception that spending on events like Christmas parties is
somehow wasteful - the point I try to make to people is there's no such thing
as good or bad spend
Mike Kershaw Concerto
We haven't had an officer party in years as we are busy working all Xmas and
new year in essential services to keep you all safe on a 24/7 basis with very
little reward - still I retire next year so may even get a Xmas after 30 years
of shifts
Steve West Midlands
We have had to knock our Xmas jollies on the head this year as it did not
seem right to have a shindig when so may colleagues have been laid off this
year - we have to be slim and lean to be ready for when the inevitable upturn
in fortunes make themselves felt
Mark, Buxton
No Christmas party for us this year with the amount that would have been
spent having gone to a local charity instead - nothing to do with cut backs
Lorraine Stockport