Extravagance no longer essential for office parties

In difficult economic times, it can be more challenging for companies to provide year-end recognition for their employees - and that situation is leading some employers to get creative with their annual celebration activities.

Jeff Johnson, president of Ozark-based advertising and marketing agency The Team Inc., has seen the issue from both sides.

Johnson's company has found a way to save money in its year-end celebrations in addition to helping others plan their festivities.

"We started out here doing the normal Christmas party including spouses, and invariably for one reason or another, it became too big a deal," Johnson said. "So we went to just employees - we take a Friday and all go to lunch, and we divide up and have a bowling tournament and Christmas gift exchange. In the end, it probably costs us $500 for an afternoon party, lunch and a little something for employees."

Lynette Weatherford, owner of Human Resource Advantage LLC, said creativity in year-end planning helps companies overcome budget shortfalls.

"There are fun ways to reward employees that aren't always about money," she said. "Throwing money at them isn't always going to make them happy, but giving them a pat on the back in front of their peers goes miles."

One possibility, Weatherford said, is letting employees plan and coordinate the celebration themselves - a potluck dinner or a Secret Santa gift exchange creates camaraderie without a lot of company expense. Another idea: silent auctions.

"Instead of giving away the traditional bonus, which many companies just can't afford anymore, there are different prizes - anything from gift cards to DVD players or iPods," Weatherford said. "They could do it like a silent auction with Monopoly money - they earn the money (over the course of the year) and then get to shop with it."

One popular trend, according to Amberg Entertainment President Ted Amberg, is combining year-end employee recognition with the holiday parties.

"We did one (for Tracker Marine) at (the Hilton Convention Center in Branson) recently that had the business portion on one side and a wall in-between, and once the recognition was done, we opened up the wall and turned the music on and there was a casino night waiting," Amberg said. "There's definitely ways people are combining them. It's not anything brand new, but more companies are falling into that group."

Though he declined to disclose the full cost of the event, Amberg noted that by combining the holiday party and year-end recognition into one event, companies save a minimum of $20 per person on food and room costs alone.

"If you have several hundred people there, that adds up really quickly," he added.

Weatherford said the combination idea makes sense for employees who may have numerous other engagements to schedule during the holiday season - and it saves money for workers, too.

"Employees, too, feel the (financial) pressure of having to buy an outfit for a party or find a babysitter," she said.

Even companies in a tough economic situation or those that have laid off employees, Amberg said, shouldn't be so quick to cut the party or entertainment out of the budget. He said the impact on company morale cannot be overstated; he pointed, as an example, to the Great Depression, when ticket sales to motion pictures and carnivals skyrocketed as people looked for temporary escapes.

"Some people say, 'Let's not do it because people are going to be upset that we just laid people off and now we're having a party.' But during tougher times, that's the time you want to do a morale-boosting activity," Amberg said. "It's those times that you want to get people together and say, 'We're a team, and this is our thank you to you, and we want you to know we do appreciate you.'"

Johnson agreed, adding that a party doesn't have to be an extravagant or expensive affair.

"I think everyone knows that it's tough right now to be an employer as well as an employee," Johnson said. "Everyone will have their feelings tempered - which means if you can do anything, it'll make a bigger impression than most years."