The Death of Office Perks for the Little Guy

Dec. 18, 2008— -- Even if you managed to survive the latest round of layoffs, your office is probably not too jolly a place to be this holiday season.

The festive spirit that normally closes out the year is a bit less bright this year as many companies scale down or eliminate their annual holiday parties.

Christmas parties are the latest victims of the financial crisis. Several small but morale-building perks for your everyday employee are quickly disappearing as corporate America tries to cope with what is likely to be a prolonged recession.

Forget year-end bonuses. We're talking about the little perks that make the daily grind a little bit easier. Think about those free glazed doughnuts in the morning, or that stockpile of hot chocolate or personal use of the company's spare sports tickets.

Amy, a consultant based in Boston, has noticed these kind of changes recently at her firm.

"Over the past year, we have lost perks like free soda in the fridge, bagels every Friday, occasional Happy Hours on the company and our annual Red Sox and Celtics games," said Amy, who asked that her last name not be used to avoid angering her employer. "It does seem petty to complain about the company getting rid of free soda but little things mean a lot to overworked employees. I'm sure the annual cost of sodas and bagels for the office was minimal compared to a partner's bonus."

Like many other workers, she understands that these cuts are better than layoffs. But, she said, they still hurt.

"Of course, I am grateful to still have a job," she said, "but my daily soda used to help get me through a tough day."

Ilene Gochman, practice director of organization effectiveness at Watson Wyatt, a Chicago-based management consulting firm, said that if companies are downsizing they "don't want the appearance that a job could have been saved if only we didn't have free pizza on Fridays."

The dollars between free pizza and an employee's salary probably don't match up, Gochman said, but it is a matter of appearance.

"I'd rather have a job and no holiday party than a holiday party and no job," said one employee at a New York financial firm who asked not to be named.

Other changes aren't quite as noticeable but make a difference. For instance, Gochman said, some companies are scaling back from two copiers on a floor to just one. It's a small change, but one that makes a big difference if you have to make a lot of copies.

Watson Wyatt surveyed 248 companies and found that 19 percent had canceled or downgraded their parties. An additional 18 percent were weighing their options.

"It makes good sense to scale back the party," Gochman said. "It's not in great taste to be celebratory."

Media and entertainment giant Viacom announced Nov. 3 that it was eliminating its annual holiday party. Instead, each employee got an extra two vacation days to use between Dec. 22 and Jan. 1.

"As the holiday season approaches, we also want to encourage you to spend time with your family and friends, which is even more important in these uncertain times," the company said in a letter to employees.

A Viacom employee who did not want to be identified for fear of retribution said, "With rumors of layoffs floating over our heads, I think it's only right to cancel the megaparty. Screw the party and save a salary or four. Additionally, we're all terrified we're about to lose our jobs. Terrified creatives [employees] plus booze equals a disaster waiting to happen."