It may be BYOB as fewer firms plan holiday parties

Companies plan even fewer holiday parties than 2008

Expect less drunken revelry

SAN FRANCISCO, Oct 27 (Reuters Life!) - Although the U.S. economy may be improving, companies are planning fewer holiday parties and less revelry than last year.

Fewer firms plan to break out the bubbly this season than in 2008, at the height of the global financial crisis, according to a survey from Challenger, Gray & Christmas Inc.

Only 62 percent of about 100 companies questioned in a survey said they were planning parties this year, down from 77 percent a year ago and 90 percent in 2007.

"For companies that have recently announced layoffs or other significant cost-cutting measures, such as wage freezes, it would be difficult to justify, let alone get in the mood for a holiday party," said John Challenger, the firm's chief executive officer.

Challenger said it sends out roughly 1,000 survey requests to human resource executives at U.S. companies. Each year about 100 companies respond.

Sixty-four percent of companies that are going ahead with parties said they would spend the same amount as a year ago, and 28.5 percent are spending less.

Nearly two-thirds planned to do without a caterer, event planner or other outside service, which could mean an employee will be conscripted to set up the party -- or that workers will have to help stock the refreshment table themselves.

Compare that with the heady days of late 2006, when 80 percent of companies planned holiday parties and nearly one in three planned to boost their budgets significantly.

This year's dampened spirit comes as no surprise as companies cut more jobs and Americans try to save as much money as they can.

Equifax credit bureau said earlier this month that new credit cards issued were down more than half from July 2008, and Americans' savings rate rose to an estimated 3.71 percent in the third quarter.

Challenger also said employees who will be treated to a party this year should refrain from any drunken antics.

"Now is not the time to draw attention to oneself with embarrassing conduct at the holiday party," he said, "particularly at a time when everyone's job is at risk of being downsized." (Editing by Michele Gershberg and Lisa Von Ahn)

REUTERS