Is the office party over?

GONE, IT SEEMS, are the days when Christmas staff parties took place in champagne-flowing marquees, at top-end restaurants, or…

GONE, IT SEEMS, are the days when Christmas staff parties took place in champagne-flowing marquees, at top-end restaurants, or during subsidised weekends in European cities. The way things are going, many Irish staff will be lucky to get a cracker and a handshake this year, as the credit crunch threatens to steal the Christmas staff party, writes BRIAN O'CONNELL

Allied Irish Banks (AIB) became one of the first financial institutions out of the traps when it announced that plans for this year's Christmas staff parties have been shelved. A spokesperson for AIB told The Irish Times: "We are not subsidising or facilitating any staff parties this year due to the prevailing economic conditions." In previous years, the bank would have made a contribution of €75 per employee towards the annual get-together.

Given that staff may have worked harder this year than in previous times, and the need for morale to be boosted, is it right that frontline staff should be left without Christmas cheer? “I think the staff are fairly level-headed and sanguine about it,” says an AIB spokesperson. “I can’t speak on behalf of all staff, but certainly those I have spoken to are not put out that the staff party has been cancelled. There is no doubt that staff have worked very hard during the past year, and it is a very difficult time for everyone in the country. There is no sense of entitlement to a staff party. Our focus now is to keep our heads down and get through the current difficulties and wait and see what happens in the future with regards the Christmas party.”

One AIB worker says staff are feeling angry about the head office decision. “We can see where the company is coming from, as it is a cost-based decision, and to a lesser extent it is influenced by public sentiment at the present towards banks. Last year one of the branches had a black-tie event and it was made out that it was this big corporate affair in the local media. So they are worried about that. The staff, I can tell you, are disappointed we are not having a Christmas party. We have worked hard and put up with a lot over the last year.”

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The worker says staff have been encouraged not to organise informal staff get-togethers. “We’ve been warned not to have Christmas parties. They are really worried about the public image. We have taken a lot of crap at the counters this year and, well, the mistakes made were made high up and we are the ones who have to take the flak. We’re resigned to the fact though there is nothing we can do about it.”

AIB is not alone in cancelling Christmas staff cheer. RTÉ will also be cutting back on the annual staff party, and said in a statement: “There are no formal plans here at present. Any arrangements made last year were modest, and that will very definitely be the case this year. Mostly, our many programme teams make their own arrangements and their division may allow a small contribution toward cost. There isn’t any central budget for parties.”

On behalf of Anglo Irish Bank, a statement by Drury Communications said that “the management of the bank is continuing to work very hard on a number of business priorities, and no decision has been made on a Christmas party at this stage. Our mandate, as a nationalised bank, is to keep the public interest to the fore, and decisions around such matters will reflect this objective.”

A HSE spokesperson said: “The HSE head office does not arrange Christmas parties for staff and will not be doing so this year.”

MAY MANNING, director of Occasions, a company that specialises in providing corporate entertainment, says her company has had to rethink the Christmas package on offer to companies this year in an effort to maintain business. Whereas last year one of their packages cost €85 per person, this year the price has been reduced to €69. "Companies such as banks that might have been supplied with entertainment by us in previous years are not having parties this year," she says. "What we are seeing in many other companies is individual departments may be organising events, rather than a big company do. These are not necessarily being endorsed by head office, and many employees are covering it themselves."

Kate Howey of the Trident Hotel in Kinsale, Co Cork, says bookings have yet to take off, and there is a noticeable drop off in trade compared to 2008. “At the Trident Hotel we only have one Traditional Party night scheduled, and it’s very competitively priced at €30. There are hardly any bookings yet. In previous years you would have seen a couple of dates all but booked out by the beginning of November. The phone just isn’t ringing yet for Christmas parties. We’re presuming the trend will be to book late and at the best rate possible.”

But, what of the effects on staff morale by employers not showing their appreciation at Christmas? With staff bonuses and Christmas hampers in low supply this year, surely there should be some appreciation shown by employers towards their staff? Patricia Callan, director of the Small Firms Association, says most of her members will try to do something, even if it is a far more modest affair than in recent years. “There is a sense, with so many redundancies and job losses, that for those left behind, companies need to rebuild morale. Black-tie events will be scarce, as will going away for a night, and whereas before staff may have gone for a three-course meal, it might just be finger food this year.”

Pamela Fay, a business consultant, believes that employers should be careful not to kick workers when they are down, and that a small token of appreciation at Christmas goes a long way to maintaining staff unity and cohesion. “I e-mailed 10 clients, and the feeling out there is that those having parties will be asking employees to make contributions themselves. There is a sense that a need exists to celebrate the end of 2009 in some way. A big thing I am hearing back is that a staff party is a good way to say thanks to staff, and it is seen as an effective motivator.”

Fay believes companies have to strike the right balance between celebrating the time of year and being conscious that, for many, Christmas 2009 will be a very difficult one. “It’s a tricky one for employers. On the one hand, workers left in the companies have probably worked harder and longer than in any other year. Yet not many people are in the mood for celebrating. The balance is trying to make sure people feel appreciated, while at the same time not overdoing it.”

Festive four: to party or not to party?

STEPHEN McNAMARA

Ryanair’s PR chief

“As the recession took hold last year Ebenezer O’Leary scrapped all budgets for booze-up Christmas parties. This year Ryanair will pay for a cheap DJ and some flashing lights in whatever local hotel offers us a free room. The Christmas spirit remains but the budget for Christmas spirits, beer, wine, food and silly hats is well and truly gone. This Christmas, Ryanair staff will raise a glass to the fact that they work for the only airline that has not imposed job or pay cuts this year – while airline staff throughout Europe face a Christmas of industrial action.”

KEN MURRAY

Owner of Murray’s Centra, Cork

“This year we are going to a hotel for a themed party night. The majority of the staff are going, just like other years. We have a social club in work that pays for half the costs, and I pay for the other half. When you consider the amount of money involved and the benefit for morale, it’s well worth it. I think anything that can give staff a boost in these gloom-and-doom times is beneficial. The ticket costs have been reduced by about €20, and that is the only difference between this year and last. We try and do three activities with the staff every year. ”

LEE BRADSHAW

The Station House Bar and Restaurant, Tralee

“We have 13 full-time staff, and five or six part-timers. We usually wait until January for a proper staff night out, and then we go for a dinner and have drinks beforehand. We also take a week off in January in recognition of the work staff put in over Christmas. We are currently nominated for Kerry Restaurant of the Year, and it is hugely important to mark the contribution staff have made. Hours have been cut down a few months ago and everywhere is working harder, so I don’t see any point in cutting back on the staff party.”

TONY McCARTHY

Forefront Television Production Company

“We’re going to do the same as every other year. We go out for a meal and a few drinks. The thing about Forefront is that over the years there would be a number of extended members of the Forefront family working with us such as freelancers and so on, so it’s an opportunity to say thank you to those people. It’s normally about 10 people so the company bears the cost and it shouldn’t be substantial. It’s just a chance for people who would ordinarily be on the road working to get together and meet in a social as opposed to work context.”