More Creativity Required

“Professional event planners are in the business of pulling off great events that meet corporate objectives and stay within budgets, but the current climate is forcing them to stretch the envelope a bit,” says Jim Alkon, group publisher of Agenda USA (www.agendaonline.com), producers of resource directories, an online venues-research tool, and live events for special-event and corporate-meeting planners. “Lower spending levels and restrictive marching orders are forcing them to be more creative than ever.”

According to Agenda’s survey, 48% of corporate event planners said their holiday party budgets have been reduced, including 18% who expect deep cuts.

The most common cost-cutting measures being implemented or considered include a more cost-sensitive menu (48%), less lavish décor (32%), and a less expensive venue (29%).

“I think companies really have to work with their meeting and event planner and be very sensitive to the image they want to convey” internally and externally, Alkon says. For example, an employer that laid-off 5% of its workforce 2 weeks before throwing a lavish party will send a message that “something is out of whack,” he says.

Stretch the Party Budget

“Take a look at all line items and costs,” Alkon says. As surveyed companies have done, consider scaling back on the menu, décor, and venue. He also offers the following advice:

Reach out to employees. If hosting a holiday party will be a struggle for your company this year, send out an employee survey explaining that you’re contemplating a party and asking how important the annual gathering is to them and how they would feel if you didn’t have a party. Employees might support a decision to cancel a holiday party if it means saving jobs, he says.

Understand the benefits. Keep in mind that a free meal for employees is not the only benefit of a holiday party. A party also provides an opportunity for employees from the same department to bond and for employees from different departments to meet, which can help boost productivity. Don’t worry about having to skimp a bit on location or food choices, Alkon says. “Putting people in a situation where they can network and reach out to people is more important than what you’re putting in their mouth.”

Identify your goal. If you decide to proceed with a party, “try to make sure you know why you’re doing this and whether you accomplish it,” Alkon says. Surveying employees before and after a holiday party will help you determine whether you attained the intended goal.

Wait for better rates. He says some corporate event planners are scheduling company parties for January, when rates are much more competitive.