The death of the Christmas Party?

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