Office parties get downsized

For more than three decades, the annual Christmas luncheon at religious publisher Thomas Nelson has been a holiday tradition for employees.

But in a year when the Nashville-based company has shed jobs, trimmed its roster of authors and pulled out of major industry trade shows to cut costs amid weaker book sales, the streak is over.

Instead of gathering in a ballroom at the Sheraton Music City Hotel to eat a three-course meal and open gifts, employees will bring their own food to a potluck meal at the company's warehouse this year.

"We're trying to explore more cost-effective alternatives," said Lindsey Nobles, a spokeswoman for Nelson, which expects to save "thousands of dollars" by altering its holiday traditions.

The publisher isn't alone in trimming party plans. Other companies in the Nashville area say they've canceled events; slashed expenses on holiday menus by serving meatballs or pigs-in-a-blanket instead of beef tenderloin and shrimp; or shortened guest lists.

Nationally, more companies that typically hold holiday parties are canceling them, according to a survey by workplace consultants Challenger, Gray & Christmas Inc. Others are limiting events to employees — not inviting outside clients or family members to take part.

John A. Challenger, chief executive of Challenger, Gray, said financial services firms, auto companies and homebuilders are among those most likely to make cuts or cancel parties this year. Challenger thinks cutting back on holiday cheer is a mistake during tough times, though.

"Cutting out a year-end holiday party means people don't have a chance to come together and recognize each other and the hard work and difficulties they've been through," he said. "It can be very damaging to the culture."

Party costs are a factor

Some companies say keeping a close watch on costs and doing away with holiday frills amounts to a responsible course of action when sales shrink and stock prices fall.

Nashville-area companies that canceled parties altogether this year include American General Life and Accident Insurance Co. Its parent, New York-based AIG, has seen its corporate events scrutinized more closely since it accepted a multibillion-dollar bailout from the federal government earlier this fall.

Other companies here say they're going ahead with holiday parties but trying to spend a little less money.

Pinnacle Financial Partners will still throw its annual Christmas bash for employees next month, but the party will take place at the Schermerhorn Symphony Center instead of outdoors at Cheekwood Botanical Garden and Museum of Art.

Last year, an outdoor bash at Cheekwood included the cost of renting portable heaters and tents to accommodate an expanded employee base after an acquisition. Last week, Pinnacle also held a clients reception at the symphony hall for the second year in a row.

"We don't spend a lot of money on advertising, and this is our principal mechanism to get together with our clients once a year," said CEO M. Terry Turner.

At some brokerage firms that nixed or trimmed budgets for holiday parties, local managers are stepping up to personally fund employee gatherings.

Billy Eskind, who manages the Nashville office of Wachovia Securities, plans to dig into his own pocket because his employer, which is being acquired by Wells Fargo & Co., isn't going to pay for a party this year.

"You have to reward your employees because while it's been tough on the client, it's also tough on the employees," said Jeff Factor, who oversees two Nashville-area branches of wealth management firm Smith Barney.

Factor remembers better times when soaring stock prices and sweet profits on Wall Street meant lavish holiday parties. "Anything that the caterer dreamed up we had," Factor recalled.

Better to give than receive

In keeping with the holiday spirit, Smith Barney's employees plan to use money set aside in the local budget to send packages stuffed with magazines and other requested items to relatives of employees serving in the military in Iraq and Afghanistan.

"That old adage that it's better to give than receive is really true for us this year," Factor said.

Employees at UBS Financial Services' local office, meanwhile, recently decided to donate money to help needy families instead of spending it on a holiday party and refreshments, said Tony Thorpe, branch manager.

Meanwhile, caterers and other businesses that rent party items from big tents to silverware say they're feeling the holiday pinch.

"We're still doing the parties, but they're not as extravagant as last year or as they have been," said Malcolm Greenwood, who owns Big Events Inc. More corporate clients have requested lower-cost food items this year to keep expenses down, he said.

Overall, food costs for corporate parties can range from $15 a plate for chicken and meatballs to $35 or more for beef tenderloin and shrimp, said Anne Clayton, director of sales for Music City Tents & Events LLC.

Brenda Odom, owner of U-Kno Catering, said some of her clients plan to stage much smaller office parties rather than invite hundreds of guests.

"They may order just the entree — the turkey and dressing — from us and not order the whole meal," she said.

'Back to our roots'

At Thomas Nelson, events manager Whitney Connell doesn't expect the planned potluck party for 500 employees to cost the publisher much money at all next month.

A musical band of workers — mostly from the warehouse — will provide much of the entertainment. Students from New Hope Academy, a private Christian school in Franklin that Nelson and its employees support, may sing Christmas carols.

"We're still celebrating Christmas as a company; this will really get us back to our roots, and it will still be a festive occasion," Connell said. "Many of the employees would much rather see this happen than have any job cuts. We don't need a big shebang during this recession."

Seasonal jobs outlook is dim
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