The Death of Office Perks for the Little Guy

No Party but More Time Off

So no music, drinks and food at Viacom but "a little extra time to relax and recharge for the coming year" for company employees.

ABC is among the companies that have eliminated their annual holiday parties.

It's not just corporate America that is cutting back. The chairman of the Joint Chiefs of Staff for the U.S. military canceled the annual Christmas party at his home "due to trying financial times."

"Please disregard your December 7th Holiday Reception invitation. We sincerely regret any inconvenience and greatly appreciate your understanding," said a note canceling the event.

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Instead, Adm. Michael Mullen says he will "host a small gathering for wounded service members, their families and the families of the fallen."

Sending the Right Message

Gochman emphasized that there is a big difference between scaling back and canceling a holiday party. There are some benefits to holding the parties, even in tough times.

"They are a way to say thank you and acknowledge that people have worked hard this year," Gochman said. By canceling, "you also inadvertently send a message of more panic than you intend."

Some of the firms moving forward with the parties are changing the way they are held: maybe several department events instead of one companywide party or a luncheon instead of dinner.

If a company cancels its event, Gochman warns that management needs to be really explicit about why it is canceling.

"Are you canceling because you can't afford it or because the company thinks it's in poor taste to be celebratory? People could come to a lot of different conclusions," Gochman said. "When there is no information, employees fill in the gaps and they are often wrong. They often assume the worst."

Rodger Roeser, president of a company that plans many events for his corporate PR clients, said there is plenty of scaling back but not necessarily because of tight budgets.

"What we're seeing this year is: companies coming to us with smaller budgets," said Roeser, president of Eisen Management Group in Cincinnati. "I don't think it's a reality of the organizations really having a smaller budget. I think it's being done on a perception basis. I don't think they want to overtly be going too far over the top knowing that there are a lot of people in a challenging situation."