SmallBizResource Blog -- Economy

Go Ahead And Have Your Office Holiday Party

Posted by Gayle Kesten Friday, Dec 5, 2008, 02:07 PM ET

A day after widespread layoffs, my former company went ahead with its preplanned summer BBQ. Biting into my burger that hot day several years ago, I couldn't help but wonder if cancelling the event could have saved someone's job.

So here we are less than three weeks away from the holidays. Anyone in the mood to party with co-workers? Overall unemployment is up 6.7% -- the highest in 15 years -- and the economy lost 533,000 jobs in November alone (total to date since the recession began a year ago: 2.7 million).

More near and dear to our hearts, small businesses with fewer than 50 employees bade farewell to 79,000 jobs in November (around a 60/40 split between goods-producing and services jobs), according to ADP's National Employment Report (PDF). "Until recently, these small businesses were impacted less than larger ones, but today’s employment decline clearly indicates that the recession has now widened to include businesses of all sizes," says Joel Prakken, chairman of Macroeconomic Advisers, which partners with ADP for the monthly survey.

All that grim news, however, is exactly why a holiday party is still worth having (something my former bosses, I now see, understood). "You have to keep morale going up even though we are on hard economic times," Ed Booth, a town administrator in South Carolina, told The Sun News.

Indeed, a survey out of online payroll service SurePayroll found that six out of 10 small-business owners intend to end the year in celebration. Seven out of 10 said they plan to spend as much or more than they did last year.

Out of respect for those who were laid off, not to mention planning wisely and responsibly for next year, my feeling is you should tone any plans down a few notches. Party likes it's 1929, suggests this New York Times article, which is really about hosting a holiday dinner party on a dime, but I appreciated the headline. Some ways to bring down your costs: host luncheons instead of dinners, stick with wine and beer instead of a full bar, or keep the festivities in-house.

Another option: Instead of a party, spend a day with your staff volunteering at a charity or school, suggests an Associated Press article. "And some owners recognize that rather than party, their employees would rather have a little extra time off during the holidays."

What are your plans?

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