Survey Shows the Return of the Company Holiday Party

While many businesses, especially small businesses, cancelled or downsized holiday celebrations in 2008, things are looking up this holiday season. A recent nationwide survey* by McCormick & Schmick's Seafood Restaurants [Nasdaq: MSSR] of small business owners, managers and decision makers found that the majority are planning holiday parties for employees this year. While the more extravagant holiday party budgets of years past have been reduced, small business owners are planning more modest parties this holiday season, without wanting to sacrifice quality. One-third of those polled indicated they are planning to spend $30 or more per employee.

Specific survey findings include:

• The majority (52 percent) of small business executives want their company to have a holiday party for its employees this year. Executives at companies with annual revenue exceeding $750K are more likely than those with annual revenue of less than $750K to want a holiday party (68 percent versus 47 percent, respectively).

• 31 percent of small businesses who had a holiday party in 2008 scaled it back because of the economy. Downsizing holiday parties in 2008 was more prevalent among companies in the wholesale/retail sector (39 percent) than in the financial services sector (24 percent) or professional services (24 percent).

• 31 percent of small businesses are likely to spend $30 or more per employee on their 2009 holiday party. 24 percent of small businesses are likely to spend $50 or more per employee on their 2009 holiday party, 19 percent are likely to spend $20 to $49 per employee and 12 percent are likely to spend less than $20 per employee. Overall, small businesses who said they are likely to have a holiday party plan to spend an average of $36 per employee.

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