Despite Economy, Small Businesses Plan Holiday Parties

Most Small Business Owners Can Afford Holiday Celebrations

According to a survey conducted this month by online payroll service SurePayroll, most small business owners will end 2008 in celebration. The survey found that despite recent economic challenges, 6 of 10 small business owners are planning to hold a holiday party and 8 of 10 of those are confident they can afford it.

Party Spending Level Maintained

Not only are they going ahead with holiday parties, they aren’t cutting back on the scope of the events. Seven of 10 business owners planning parties said they are spending as much or more money this year as in the past.

“It’s been a tough year for the business world, but most small business owners realize how essential it is to thank their employees for their hard work,” says SurePayroll President Michael Alter. “A holiday party is the perfect opportunity. Business owners might cut other costs during tough times, but most budget for end-of-year celebrations because they are a much-needed spirit-lifter for everyone in the company.”

Making Your Office Party Stand Out

While 56% of business owners said they have typically held their parties at restaurants, some survey respondents offered up stories about how they have made holiday celebrations especially unique. Some unusual ideas:

• Throwing a bowling party
• Attending a concert
• Having a pie-eating contest
• Going to a casino
• Treating employees to a timed downtown shopping spree where employees were given $250 to spend, with a special prize to the employee who spent the closest to $250 without going over.

“Any office celebration is going to boost morale, but employees definitely appreciate extra creative ideas,” says Alter. “It shows that employers care about their staff so much that they are willing to go the extra mile to make the holiday season special.”

Tips for a successful office party

As part of the survey, small business owners also recounted moments that quickly turned the party from simple fun to outrageous or awkward. Here is what some of the respondents had to say:

• “One of the male members of our staff led a conga line in a grass skirt and coconut bra.”
• “A secretary lost her shirt for a substantial amount of time.”
• “Santa’s pants fell down to his boxers.”
• “I heard that the accounting girl and a sales person got a little tipsy and then, well, you know…”
• “The boss attempted to ‘pick up’ my date! And by ‘pick up,’ I don’t mean physically.”

According to Alter, party planning is the key to help avoid the worst, and hope for the best:

Think about who’s on staff

“Considering who makes up your team can have a huge impact on the success of your party. Does your business have a large number of young single workers, or are they older workers with families? This will ultimately influence the decision about party location and activities that will most appeal to certain groups.”

Survey the office

“Unless you’re planning a surprise, ask your employees what they’d like to do to celebrate the holidays. Their ideas might not be what you expected, and there’s no better way to ensure they will attend and have a good time.”

Choose your location wisely

“If you choose a venue that allows for the consumption of alcohol, anticipate that there may be employees who take it a bit too far. Encourage carpooling and designated drivers or plan for appropriate transportation, if necessary. This will help ensure the safety of all your workers. If you’re in a public setting, the way your employees celebrate may ultimately reflect upon your business. It’s often a good idea to make employees aware of what your company does and does not condone in a holiday party setting.”

Keep it lighthearted

“If you notice an awkward situation developing, sway the conversation in a different direction. If that doesn’t work, pull the offending individuals aside and talk to them on a one-on-one basis to prevent the drama from becoming a company-wide spectacle.”

Delegate responsibilities

“Small business owners often find themselves without enough time to get all their work done, much less plan an office party on their own. There’s nothing wrong with asking various staff members to help out. In fact, it will most often lead to a better party.”

About SurePayroll:

Voted Editor’s Choice for best payroll service by PC Magazine, a Top 100 Product by Accounting Today and finalist in the Best Customer Care and Best Product categories of the 2008 American Business Awards, SurePayroll is America’s largest full-service online payroll service and honoree of the Inc. 500 Fastest Growing Businesses award two years in a row.

SurePayroll is dedicated to providing an extremely friendly and simple payroll experience — at a price small business owners can afford. It also offers a suite of online services for small business, including HR and compliance resources, 401(k) retirement solutions, health insurance and workers’ compensation products.

UPDATE: Recession Crashing Holiday Parties?

In contrast to the SurePayroll report, this Dec. 8 article by the St. Louis Post-Dispatch says that larger businesses, at least in St. Louis, are scaling their holiday festivities back dramatically in the face of rising unemployment.

According to the article, more expensive caterers in the St. Louis area are really feeling the pinch. However, smaller and less expensive caterers are seeing virtual boom times.

Creative Holiday Festivity Ideas

One bright spot in the Post-Dispatch piece is that it gives a host of fantastic ideas for celebrating the holidays on a tight budget. Among the best:

• Donate the money you would normally use for the bash to a local charity.
• Combine events. If your company usually has a year-end event and a January kick-off event, combine the two into one and save.
• Rather than a company-wide event, let your company’s various departments and workgroups organize their own, smaller events. These also can be tied to serving or raising money for a local charity.
• Relocate your company’s event from your usual expensive restaurant to a public venue. Other format changes can include having the event for employees-only during the workday, and substituting a few select beverages for a full bar.
• Delay your event until January and take advantage of lower prices.

If You’ve Got It, Spend It – Patriotism and the Company Christmas Party

Of course, if your company is one that isn’t suffering this holiday season, you may want to consider going ahead with your holiday plans as usual. Thriving St. Louis criminal defense firm Rosenblum, Schwartz, Rogers & Glass is planning on holding a huge event this year not only for employees, but also for “clients, colleagues and friends,” who have contributed to their success: roughly 1,000 people in all.

Rather than feeling guilty about an ostentatious holiday bash during a recession, attorney Scott Rosenblum says that the firm is doing its part to help our economy and our country:

“We’re trying to do our part to infuse revenue into the economy,” he said.