Though the recent gains in the economy have not led many companies to stop pinching pennies, most Baltimore-area firms plan to spend a little something on holiday cheer for their employees this season.
Whether it’s full-blown affairs with champagne and tuxedos or sedate lunches out with the team, the local 9-to-5 world will find a way this month to punctuate the season — even if it might not be as elaborate as in Christmases past.
“We’ve always said that if people want to know if I’m going out of business, it’s if I’m not having the holiday party,” said Bob Leffler, president of The Leffler Agency, a Baltimore-based advertising firm. He continued his 20-year reputation of throwing merry holiday affairs last week, playing host to 500 people at City Lights restaurant in the Inner Harbor. “People expect it.”
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While a recent wave of corporate scandals and Wall Street investigations have taken some of the sparkle out of holiday events, it has by no means eliminated them.
A survey of 339 human resources and employee relations executives by the Bureau of National Affairs in Washington found that more than three out of four organizations are planning holiday parties this year. That number’s just about held firm since 1998, when the economy was much healthier.
But businesses are scaling things down, the BNA said, working with smaller party budgets and, in some cases, not allowing company money to be used for department-level celebrations.
The median cost of the average companywide party is $9,000 this year, down from $10,000 the last four years running, the BNA survey said.
“Companies are really trying hard not to cut parties, but they are looking for ways to save money,” said Joshua Joseph, the BNA’s research director.
Parties more festive
Another report, from Battalia Winston International Inc., a New York executive search firm, was more optimistic, however.
Its survey of 150 public and private companies nationwide found that 95 percent said they are having a holiday celebration this year — the same as last year, despite a tougher economy — and higher than the 83 percent saying so in the firm’s 2001 survey, in which respondents said they were affected greatly by 9/11 and related events.
In addition, 83 percent of the respondents said this year that the recent wave of scandals has not dampened their holiday spirits.
“We’ve begun to see the economic turnaround,” said Dale Winston, chairwoman and chief executive of Battalia Winston. “Last year’s parties were more about team-building. Everybody was kind of down in the dumps.
“This year, the parties are going to be more festive,” Winston added. “Companies are more optimistic that next year is going to be better.”
Gesture of thanks
Blake Goldsmith, owner of the event-planning firm Extraordinary Events in Baltimore, said the holiday party business is strong this year. “It’s been a good year,” he said. “Probably not what everyone’s expecting.”
Goldsmith added that while his clients were by no means scrooging on their events, some are watching the bottom line a little more than usual.
But since few can afford to do everything, Goldsmith said the key is doing one showstopper that everyone will remember. In that vein, some companies are planning holiday skits with Elizabethan-style actors. Others are going for fortune-tellers.
“People are watching their budgets,” he said. “But it needs to have impact — something that implies appreciation.”
Appreciation is part of what Leffler shot for with his party last week. Employees mixed with the politicians, sports figures and media personalities they represent. The format was simple — an open bar, hors d’oeuvres and mingling. No program. After-work attire. No different from any other year.
“We don’t tinker with it,” Leffler said. “You have a bunch of competitors in the room who like each other, and they just want to get together to enjoy each other.
“It was a big gabfest,” he added. “It started at 5, and people finally got tired of talking to each other at 11.”
Though he certainly isn’t obligated to throw a party, Leffler knows a good one can build business and keep his employees happy. “It’s a hard business today and they don’t get a lot of appreciation,” he said of his staff. “[The party] is our way of saying all of that at once.”
Oysters and beer
At an unlikely spot a few blocks away, the large staff of Struever Bros. Eccles & Rouse Inc., the development firm in Tide Point, will toast the season Wednesday in their way — or in what president C. William Struever said is a Baltimore way.
Known for redeveloping many city neighborhoods, Struever picked Cross Street Market in Federal Hill for his annual party. What with the history, the urban-neighborhood feel, the lack of pretension, it was an ideal location, he said.
Thousands of people affiliated with the company are invited — from “construction laborers to fancy bankers to investors with gold-plated shoes,” Struever said.
Together, stuffed into Cross Street tighter than a Christmas stocking, they’ll work their way through 30 bushels of oysters, 200 pounds of buffalo wings, 25 cases of champagne and 30 kegs of beer — most of which will be provided by the market’s merchants.
“We just go off to the market and have
fun in a simple and festive way,” Struever said. “Our parties are not extravagant; they’re friendly, down-to-earth affairs. We don’t spend gazillions of dollars on
black-tie formals or fancy-pantsy things.”
Monitoring revelers
Firms that serve drinks at their celebrations usually take some precautions to prevent being served later with a drunken-driving lawsuit — and to just protect their revelers.
At Struever’s bash, he’s offering shuttles from the company’s nearby offices, and coffee and water will be on hand should people need to dilute themselves. Taxis also will be available for free.
“It’s something we’re very careful about,” Struever said.
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Winston of Battalia Winston noted that many companies sponsor cash bars at their events — “and it isn’t about the money. It’s about making alcohol less accessible.
“People just don’t drink much in a work setting anymore,” she added. “People now are infinitely more responsible in a business setting.”
Over-egg-nogging, however, isn’t the only liability of an office party. Taking full advantage of the mistletoe is a big no-no, too.
Michael Hayes, a University of Baltimore law professor, said that in the spirit of being better safe than sorry, some employers are making sure workers behave at company parties by sending reminder memos or convening staff meetings beforehand. And, there are designated level-headed employees who keep an eye on things during the festivities.
“There used to be a what-happens-at-the-party, stays-at-the-party sort of attitude,” Hayes said. “Those days are over. There’s just too many risks — and risk is liability.”
Upscale bash
With all that in mind, the staff of Alter Communications Inc. plans to take their best shot at fun with their annual party on Thursday. Planned by the publishing firm’s “fun committee,” the festivities are going ritzy this year, trading their typical loafers and khakis for tuxedos and gowns. About 120 employees and friends are expected at the Star Spangled Banner House near Little Italy.
Andrew Buerger, Alter’s publisher, said he likes to try a little something different each year — and this year’s touch is dressing up. Drinks, a buffet and live music are on tap.
“People don’t work for our company for a paycheck,” Buerger said. “It’s a fun place to work, and I want them to have a good time.”
Even if the budget is tight, “We always make a reason to celebrate,” he said. Actually, tough times are even more of a reason for a party. “We’re very creative,” Buerger said. “We’ll find ways to do it without spending a lot of money.”
Like many corporate celebrations, Alter’s parties involve a lot of “barter” — trading, say, free advertising for a band’s appearance or a catering discount. Because of this, Alter’s party, though rather deluxe, actually doesn’t cost the company much out of pocket, Buerger said.
On average, companies will spend about $28 per worker this year, according the survey by the Bureau of National Affairs. That’s the median as well as a drop from $30 last year and from $35 in 2000.
Celebrating simply
There won’t be tuxedos, Elizabethan revelers or flowing drinks at Beck Powell & Parsons’ holiday celebration. It’s just lunch at the Towson architectural firm. Still, president Eric Beck hopes his staff will appreciate it just the same.
With nine employees, the firm really can’t afford to deck the halls, Beck said, but staff may bring family and significant others to the lunch, which is yet to be scheduled.
“Money’s always an issue,” Beck said. “But it’s not like we wouldn’t do it. It just might influence which restaurant we go to.”
Last year, they celebrated at Paolo’s Ristorante in Towson. They might go there again this year.
“It’s nice to get out of the office,” Beck said. “It feels a little more like a special occasion.”