🔒Despite economic jitters, employers stick with holiday gatherings to build company culture

With companies keeping a close eye on costs this year amid lingering inflation and mixed economic signals, some employers are scaling back expenses where they can. So does that mean the annual holiday party might be on the chopping block? Not at American Distilling and Dickinson Brands, family-owned sister companies in East Hampton that produce ingredients for the cosmetic and pharmaceutical industries. “I think it is a particularly important investment for us as a company, to maintain our culture,” said Bryan Jackowitz, president of Dickinson Brands. The business involves harvesting the witch hazel plant to create products from its extract, including facial toners and the active ingredient in well-known brand names like Preparation H. Because his employees work in many different environments, Jackowitz says coming together at the end of the year is a key moment. The companies host a cocktail hour and full sit-down dinner each year for 85 employees and their spouses. “I’ll end up having conversations with some of the harvesters that I only see in passing when they’re delivering brush, or people on the line that I only see in the break room when we’re both warming up our stuff in the microwave,” he said. “These parties allow us to recognize people, and also in an informal setting just have a nice conversation.” He said the mixed economic news that’s been reported in recent months makes this commitment to corporate culture all the more important. “In this environment, you see Amazon laying people off because of AI, and you see Microsoft laying people off and culture getting watered down. It really makes a culture like ours shine,” he said. One study suggests Jackowitz’s approach is in favor more widely this year. A report from ezCater found that 92% of company decision-makers are either maintaining or increasing their holiday budgets compared with last year. While some of the increases may be related to inflationary cost hikes, it does seem to represent a commitment to in-person gathering. The study surveyed 1,000 full-time employees and 603 workplace decision-makers, and it also indicates that employees are looking for the in-person connection of a holiday gathering, with 83% of workers saying holiday parties help them bond and make friends, and a majority saying that in-person gatherings are particularly important in a culture of remote or hybrid work.

‘Very strong’ outlook

American Distilling has held its annual bash at St. Clements Castle in Portland for almost 30 years. “I think this year we’re seeing a strong interest in gatherings about genuine connections, people wanting to have a mindful celebration,” said Pam Marshall, the venue’s director of sales and marketing. She said while bookings are still strong, that’s led to a trend away from overly opulent holiday parties. “I think people are really trying to be mindful to the economic climate,” she said.

St. Clements sits on the Connecticut River and offers three ballrooms, several smaller event spaces and a marina. Built originally in the 1890s as a summer home, the property has been operating as a high-end venue since the 1990s. “Even though we host and can have very large and grand functions, we’re still a very intimate property, and that’s one of our best attributes is that we’re still able to function at such a high level with an intimacy,” Marshall said. Other holiday party trends she’s noticed are toward more weekday bookings, sometimes during the workday, and also bookings that stretch into January, perhaps recognizing that employees value family time at the end of the year. “They’re really open to the guests leaving the office and going to have an out-of-work experience and knowing that they’re taking it away from their office day,” she said. That’s also a dynamic for Max Hospitality Group, based in Hartford, which now operates 11 properties across Connecticut and Massachusetts. “Our December is looking very strong,” said CEO and President Scott Smith. “I have not seen or heard much of anybody saying we just don’t have the budget for this year, or we’re trying to be cautious.” Smith said the group’s catering service tends to book up early for groups of 50 or more. Private dining rooms at several of its restaurants, accommodating between 25 and 50 guests, book up a little later into the season. “The trend that we see in the restaurants is that we are extremely busy up through the 15th or the 18th (of December),” he said. “The dates after kind of fill in — there are probably a lot more last-minute bookings. Compared to last year, I think we’re probably in about the same spot.”

Setting the tone

Of course, the holiday party has a reputation as something of a minefield for employers, said attorney Daniel Schwartz, a partner and labor specialist with Hartford law firm Shipman & Goodwin. “Thinking through your alcohol-related practices is important,” he counsels. “Historically, alcohol has created the most issues over time.” Shipman’s own end-of-year bash is held at the office in the late afternoon, with professional bartenders — all modifications that he says help to moderate alcohol use. Other techniques he suggests are to offer a special mocktail to boost the fun for non-drinkers, exclude hard liquor from the offerings, and provide transportation options like rideshare vouchers. Nontraditional activities like bowling or pickleball can also provide safer options. “I think you want to set the tone in a communication to your employees, remind them that a holiday party is still a work-related event and you expect employees to behave appropriately,” Schwartz said. These days in Connecticut, that also means making clear expectations around cannabis use at work functions. But he doesn’t recommend that employers give up on the tradition — in fact, he sees companies putting even more thought into this time of year. “If there’s a side effect from the pandemic a few years ago, it’s that it’s more important than ever to continue to have in-person events that bind employees to one another, build the culture, and establish that work can be a little fun, too,” he said. For anyone still on the fence about their holiday gathering, Jackowitz, of Dickinson Brands, has similar advice. “It’s not so much about going all out, as it is bringing people together,” he said. “In a time like this where people don’t want to feel like a number, I think it’s super important.”