Tom Dowling, managing director of the Pittsburgh office of public relations firm Burson-Marsteller, deliberated recently as deadlines loomed for several key year-end and holiday-related decisions.
In front of him was an application for Steelers playoff tickets -- a hefty investment his firm typically makes to entertain select clients at Heinz Field during the post-season.
Then there was the holiday party for his 20 employees. Should it be a casual buffet dinner at one of the manager's homes or a happy hour at a downtown bar after work on a Friday in December?
Finally, what to do about Burson's long-standing tradition, the Hair of the Dog party -- the festive cocktails-and-hors d'oeuvres soiree it has thrown for clients, friends and members of the media every January for the last 46 years.
In typical times, Dowling said, he would routinely sign off on all these events and expenditures, submit the budget items for approval to Burson's New York office, "and then the next thing would come along."
This year, though, is far from typical.
With the economy sputtering through what some observers believe are the most trying times since the 1930s, many companies and managers such as Dowling are embarking on serious soul-searching to figure out how to mark the holiday season.
"We're putting a much more disciplined approach to these decisions," he said. "My hunch is, something's going to give, not because of any other reason but the uncertainty of the economy."
Despite Wall Street's woes, soaring unemployment and debate over whether automakers or homeowners should get bailed out by the federal government, Burson is actually having one of its best years ever, Dowling said. "You would think, hey, we're in our heyday. Let's spend and not worry."
But with the firm's clients slashing budgets and most people grappling with at least some aspect of the global economic downturn, Dowling is following "a bit of my gut feeling" that says the right thing to do is scale back on frivolity.
For companies that already have felt the effects of layoffs and downsizing this year, it didn't take much deliberation to trim the party expenses.
Vocollect Inc., which laid off 65 at its Wilkins, Pa. headquarters two weeks ago, canceled its annual dinner and dancing event for employees. But it will continue a tradition of a breakfast with Santa for employees' children.
"We felt it was appropriate to go ahead (with the Santa party held at the office) but as you'd expect, we're certainly not going to be doing festivities at the level we did last year," said Jennifer Clement, a Vocollect spokeswoman.
The company encourages the 350 employees who remain at headquarters to organize potluck lunches in their departments throughout the holidays "because they are hugely popular and it's a chance to get together," she said.
Only 77 percent of companies planned to hold holiday parties this year compared with 90 percent in 2007, according to the annual party survey from Challenger, Gray & Christmas, an outplacement consulting firm.
Among those that will throw parties, more are holding them during work and on company premises, fewer are using a caterer or outside event planner, and fewer are inviting spouses or partners, Challenger said.
Executive search firm Battalia Winston found the number of companies holding parties will hit a 20-year low. Of those surveyed, 81 percent will have events, a figure even lower than the 83 percent who held parties in 2001 after the terrorist attacks on Sept. 11.
Leadership coach Gay Fogarty believes gathering people together during stressful times is perhaps more important than when the economy is booming.
"I think if you can do it in some kind of way that shows yes, we're cutting back but we're not stopping, it can be helpful to people because they need something when it all looks like doom and gloom.
"In times of uncertainty, people need to be together more."
(E-mail Joyce Gannon at jgannon(at)post-gazette.com.)
(Distributed by Scripps Howard News Service, www.scrippsnews.com.)
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