Remember this time last year? Desperate employers were in the news as they cut back their spend on their Christmas parties. And many companies cancelled their parties altogether with forecaster IBISWorld estimating that about 34% of businesses called off their party last year.
Staff were left with a bad taste in their mouth – and it wasn’t just from the cheap wine and party pies.
Not so this year. New figures form IBISWorld show that the office Christmas party is back. The number of companies expected to throw Christmas parties has risen to 92% from 67% last year. And companies are forecast to spend over $560 million on their Christmas events – which is a jump of 76% from the $319 million spent last year.
The average spend per employee is expected to rise from $75 in 2008 to $105. The parties will not be on the lavish scale seen at the end of the boom in 2007 where trips to holiday resorts and up market entertainment cost companies on average $125 per head.
But as employers have landed at the end of the year in a better position than expected and with a more positive outlook for next year, they want to reward and celebrate with their staff who has slogged their way through a difficult 2009.
And there is another reason: the looming spectre of a skills shortage is certainly back on the agenda, with many companies telling me that in the last few months their best staff have been subject to competitive offers – and some have walked.
It is not only employees who can expect a big bang to the end of the year. The catering sector will be the biggest winner, accounting for 80% of the total spend – with 54% being spent on food and 26% on alcohol.
And the office hosted food and wine Christmas party that featured heavily last year is also out – replaced by a return to up market venues (12%) and entertainment (8%).
There is also a trend towards team building themed events such as casino nights, bowling and Bollywood.
And while festivities are in full swing, here is a tidbit if anyone unkindly brings up the extravagant office party from 2007.
Just remind them how lucky they are: one in five companies in the UK and 38% of companies in the US have scrapped their Christmas parties this year.
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