Economy’s a party pooper for some companies

To celebrate the holidays last year, BlueWave Computing treated 70 employees and their guests to dinner at Maggiano’s Little Italy restaurant, with endless spaghetti, lasagna and veal Parmesan.

“Open bar. The works,” CEO Steve Vicinanza said of the company-paid $5,000-plus bash. The Oscar-themed night featured door prizes such as iPods and statuettes for staffers for jobs well done.

This year, the BlueWave crew will nibble on hors d’oeuvres at the company’s Marietta office —- for half the cost and with no guests.

“We’re scaling back not so much because of performance this year,” Vicinanza said. “It’s mainly getting ready for the uncertainty of next year.”

Welcome to holiday merrymaking, 2008 style, where the Wall Street-to-Main Street meltdown seems to have another victim in its crosshairs: the office holiday party.

This time last year, the historic Georgian Terrace hotel had three dozen corporate holiday parties on the books. Today, business is “down quite a bit,” said executive meetings manager Kay Hall. In some cases, sit-down dinners and buffets have been replaced with finger foods and light hors d’oeuvres, she said.

103 West in Buckhead also has seen clients ratchet down their plans. The special events facility has gotten creative to hang on to budget-minded corporate planners, suggesting beer and wine instead of full bars, or offering complimentary hors d’oeuvres during cocktail hours.

“A lot of the companies are going to cash bars,” said 103 West events planner Kuren Kennedy. “Some of them are doing luncheons instead of dinners. Plus, we’ve had three majors ones that canceled. They just couldn’t afford it. I hope it’s not like this next year.”

Sandra Ryder, area director of public relations for the Ritz-Carlton hotels in Buckhead and Atlanta, says companies that were hesitant to book in October are starting to call, but want to keep a lid on expenses.

“Some companies are planning luncheons instead of dinners,” she said.

Even the venerable King & Spalding law firm is scaling back, with in-office parties instead of off-site fetes, spokesman Les Zuke said.

“We believe it is important in these challenging economic times to exercise prudence in the financial management of the firm for the good of the firm and our clients,” Zuke said, noting that the families and children of staffers are invited to the events.

Meanwhile, the Mulling Corp., an Atlanta executive coaching firm, has canceled its client party, a 16-year tradition, because of the poor economy.

A national trend

Some of the country’s most high-profile firms have called off holiday parties this year. Among them: television networks ABC and CBS, retail drugstore chain Walgreens and investment bankers Morgan Stanley and Citigroup. Despite those no-shows, many U.S. employers are still going ahead with parties, according to the Bureau of National Affairs’ annual survey of corporate holiday parties.

The survey, to be released Tuesday, got 293 responses from human resources and employee relations executives across the country and found that 64 percent of employers plan year-end holiday bashes, most of them paid for by the firms. But many will be restricted to employees only.

“What we may be seeing is a situation where employers weren’t able to do as much for their employees during the year in terms of raises and bonuses,” said Matt Sottong, the BNA’s director of surveys and research. “So as a way to make it up to them, they’re going forward with parties. It’s a smaller hit to take to throw a nice party than to give a substantial raise.”

Some firms are combining partying with philanthropy.

PricewaterhouseCoopers’ 1,300 Atlanta employees, in keeping with the firm’s national plans, will skip their holiday party —- usually a cocktail buffet bash at a local hotel ballroom. Instead, PWC is donating to charities and encouraging its staffers to give their time to community organizations, said market managing partner Gary Price. Nationally, the firm plans to donate $1.5 million to some 60 charities. Locally, PWC asked its staff for suggestions and will announce recipients in coming days, Price said.

The Haystack Group marketing firm is trading its holiday party for a day of work on a Habitat for Humanity project today, then dinner at the home of company president Bonnie Ulman. Associates at Hope-Beckham are trading their usual holiday party for an afternoon shopping for needy families, although the office cookie contest is still on. Focus Brands plans a half-day of volunteering Dec. 12, said spokeswoman Karen Gailey.

“In previous years, we would give associates the rest of the day off and then host a nice dinner-dancing party,” Gailey said. “This year, we’ll host a holiday lunch party immediately following our service project, and though it won’t be on the scale of our normal dinner parties, we’ll have it at a nearby bowling alley and will include raffles, drawings and games.”

After lunch, the staff of 130 has the rest of the day off.

Do it yourself —- or delay

The staff at Smith’s Olde Bar on Piedmont Avenue isn’t canceling its holiday party, perhaps because it was pretty low-key to begin with. Cobbling together a budget from staff donations, a keg provided from Sweetwater Brewery and food and drink from Smith’s, the crew of about 60 will enjoy a late-night spread. Chef Pete Wright’s cooking will be augmented by catering from Fox Bros. Bar-B-Q, and everyone will bring gifts: one to be donated to charity and a gag gift to swap.

“What’s neat about it is all the girls get to dress up and wear their hot holiday outfits,” said bartender-party planner Brittany Burdett.

Some firms plan to delay partying until after the holidays.

A Legendary Event will have its staff party after the catering company’s busy holiday season, said owner Tony Conway.

“It’s what we have always done,” he said. “You always have to be sure to entertain and celebrate.”

BNY Wealth Management doesn’t have an official holiday staff party, but employees often frequent the many social and charitable events hosted by regional president Jack Sawyer and his partner, Bill Torres.

“In January, we did have an ‘after the holidays, can’t thank you enough’ party for my colleagues in this office plus partners, spouses, dates —- and I will probably do that again this coming January,” Sawyer said.

“We mainly are just focused on being so grateful that we are not laying anyone off from this office. I am so grateful for that.”

YOU’RE INVITED

The Bureau of National Affairs’ annual survey of corporate holiday parties found that 84 percent of small businesses (those with fewer than 1,000 workers) and 65 percent of large companies plan to sponsor year-end celebrations. Among other survey findings:

> Projected median cost of parties this year: $7,000

> Cost of parties last year: $8,150

> Median expenditures per employee this year: $40

> Median expenditures per employee last year: $29

> Employers who will be serving alcohol: 65 percent

> Companies that will monitor drinking: 75 percent

> Companies that will limit alcohol: 58 percent

> Companies that will offer taxi service: 46 percent

> Companies that will provide discounted hotel rates to encourage overnight stays: 32 percent

> Companies that will appoint designated drivers: 12 percent

PARTY DO’S AND DON’TS

Hosting a holiday party can be a legal land mine, according to the National Federation of Independent Business. Here are some ways a business can avoid the pitfalls:

The basics

> Hold the event off company property.

> The party should be voluntary.

> Hire bartenders and distribute drink tickets.

> Serve heavy foods throughout the event.

> Provide hotel accommodations or transportation, especially if alcohol is involved.

> Post and remind employees about company policies on conduct, substance abuse or sexual harassment.

On gifts

Limit gifts to about $25 to $35.

Never give cash or cash equivalents. For example, an employer may give a holiday turkey as a gift but may not give a gift certificate to purchase that same turkey without reporting that gift as wages.

And finally …

Be wary of any mistletoe in order to avoid the possibility of sexual harassment.

Source: National Federation of Independent Business