Holiday parties go back to work

Amid an improving economy, the number of corporate holiday parties on Long Island and nationwide has picked up this year, according to two recent surveys and local companies. But employers are increasingly opting for simpler affairs.

This year, 76 percent of companies surveyed nationwide will hold a year-end holiday celebration, up from 67 percent in 2009, a 10-year low, said the Bureau of National Affairs Inc., an Arlington, Va., research and publishing group.

A survey by Chicago outplacement firm Challenger, Gray & Christmas Inc. found that 64 percent of companies will hold a holiday party this year, up from 62 percent last year.

Local companies planning parties include Henry Schein Inc., a Melville-based distributor of medical products, which has set the affair at the Melville Marriott after foregoing one last year, said Susan Vassallo, a spokeswoman for the company, which has about 1,200 employees on Long Island.

Last year, she said, "given the economy, we didn't have one. It was all part of our expense management."

A holiday party helps build goodwill toward companies, said Paul Munoz, president of HR Group Inc. in Plainview, who says he believes more companies are holding a celebration this year.

"In general it's a morale booster," Munoz said. The events tell employees that "the company is interested in me . . . They are willing to spend money that is not directed at the operation of the business."

Some companies have continued to hold parties for that reason, but new economic realities are prompting some employers to scale down the festivities.

Envelopes.com in Lindenhurst hasn't canceled a holiday party because of the economy, but gone are the days of an elaborate event at a restaurant for employees and their spouses when the company, which now has 40 employees, was smaller. The company instead uses such funds to boost bonuses and raises and hosts an in-house holiday luncheon for employees, said chief executive Sharon Newman.

"We felt that it sent the wrong messages to employees when we spend thousands of dollars on an event when they were not going to get as big a raise or bonus as they wanted," Newman said.

Other signs abound that companies are opting for less lavish affairs.

Dawn Strain, a Bethpage-based events planner, said she didn't get a single request to organize a corporate holiday extravaganza this year, after getting five last year. She said she believes companies are sensitive to criticism. "Their customers or stockholders might find that quite frivolous in this economy," she said.

Some businesses have benefited from cutbacks on more lavish holiday parties.

Iavarone Bros., a family-owned chain of upscale markets and cafes with locations in New Hyde Park, Wantagh, Woodbury and Maspeth, expects corporate holiday orders to increase slightly over last year because more companies are opting for in-house holiday events, said Christopher Iavarone, vice president of operations.

"It is definitely more economical to cater a party through us, compared to going to a restaurant," he said.

The Challenger Gray survey found that 53 percent of companies this year are taking the less expensive route of holding holiday parties on company premises, up from 29 percent in 2009.

Not all companies have let the economy dictate the scope or timing of their holiday parties.

On Thursday the law firm Rivkin Radler held its longtime annual holiday reception for 550 clients and friends that took over the mezzanine level of the RXR Plaza in Uniondale. A keyboard player crooned while guests selected from myriad food stations that included seafood and steak as well as Asian, Latin and Creole cuisine.

"We have clients that have been with us for decades," said marketing director Laurie Bloom. "And it's important for us to take an opportunity to say thank you."