Recessionary cost cutting put a damper on the holiday office party. As the economy gradually recovers, is the time-honored workplace tradition poised for a comeback?

The recession took a severe toll on many aspects of the business environment, and workplace perks such as parties and similar types of entertainment have not been immune to cutbacks. Office holiday parties have been in decline for the past two years, both in frequency and quality. But as businesses begin to recuperate from their losses, we can expect to see a gradual return of workplace celebrations, albeit the festivities will be more subdued.

In a nationwide survey of 2,600 employers and 3,600 workers, CareerBuilder.com found that 52 percent of employers plan to throw a holiday party for their employees this year, up from 49 percent in 2009. Of those, 79 percent said it will be the same type of party they threw in previous years. Eight percent of employers won’t be having a party in 2010 even though they had parties in previous years, down from 11 percent who said the same in 2009.

Holiday bonuses and gifts are also having a resurgence. Thirty-three percent of companies plan to give holiday bonuses to their workers this year, up from 29 percent in 2009, and 29 percent plan to give gifts to their employees, up from 26 percent last year. Only nine percent said they won’t be giving bonuses and 6 percent won’t be giving presents.

“Many employers are financially in a better place this season and recognize the positive impact holiday perks can have on office morale,” Rosemary Haefner, the vice president of human resources for CareerBuilder, said in an announcement of the findings. “Companies are not only giving back to employees this holiday season, 45 percent say their charitable donations will be the same or more than previous years.”

Among companies that aren’t planning to throw a holiday party this year, the primary reason is not budget concerns but their economic outlook for the coming year. According to a survey from executive recruitment firm Amrop Battalia Winston, 55 percent of firms not throwing a party this year say it is because they think it would be inappropriate in the current economic climate, while only 27 percent cited budget reasons as the main obstacle.

On the other hand, among the employers that are throwing parties, 37 percent said they are doing so “to celebrate [that] we had a good 2010,” while 33 percent said it is “to boost employee morale” and 29 percent “to show clients/employees that our company is optimistic about 2011.”

Cost-cutting measures enacted in response to the economic downturn are still fresh in many employees’ memories, or are still in effect at many firms, so although office celebrations appear to be recovering, they are likely to be more restrained than they were before the recession.

According to an annual survey on holiday parties from outplacement consultancy Challenger, Gray and Christmas, the majority of companies (76 percent) that are planning to have a party said their budget for it will be roughly the same as last year, while only 6 percent are planning to spend more. Eighteen percent of companies expect to spend less on their party than last year.

Scaling back remains a common practice. Approximately 53 percent of companies are holding their office party on work premises rather than an outside location, up from 29 percent in 2009. Forty-seven percent will host their events during the workday and 54 percent will be employee exclusive.

Many workers may actually appreciate the more subdued celebrations this year.

“It’s not surprising that some companies found that scaled-back parties are actually preferred by employees,” John Challenger, CEO of Challenger, Gray and Christmas, said in an announcement of the results. “There is a common perception that corporate holiday parties are raucous affairs where managers and their workers can cut loose. In reality, however, corporate parties can merely add another layer of stress to workers, who have to worry about getting too relaxed and saying or doing something that might offend a supervisor.”

It might be best to view a work party as an opportunity for professional advancement rather than an occasion to unwind. A 2009 survey from marketing firm The Creative Group found that 44 percent of respondents said an employee’s behavior — whether positive or negative — at an office party could “greatly” affect his or her career prospects and 48 percent said it could “somewhat” affect them.

If your company is hosting a holiday party this year, it’s important to avoid making any potentially embarrassing moves. MSNBC.com offers the following tips to help navigate this year’s office celebration:

• Don’t drink too much. Getting drunk is one of the surest ways to get yourself in hot water, so try to pace yourself or stick to non-alcoholic beverages as much as you can.
• Don’t overdress (or underdress). While it may be tempting to make a fashion statement in front of your coworkers, wearing something over-the-top can hurt your reputation at the company.
• Don’t get too personal. If you’re attracted to a coworker, under no circumstances should you try to make a move on him or her at your office party.
• Don’t let your guest go wild. Bringing a date to an office party can actually be a smart career move — just be sure to go over what’s considered acceptable behavior at your firm before showing up.
• Don’t complain about work. An office party is not a good place to vent about your work frustrations. Instead, try to enjoy your time and relax around the people you spend your day with.

“Even after the economy gets back to normal, it’s likely that Christmas parties won’t. Like liquor-soaked client lunches, the office holiday party may be a dying vestige of an earlier era,” Bloomberg BusinessWeek notes. “Perhaps when work became much more casual, you didn’t need one day to let go. Or maybe when work is on your home computer and your cell phone, you don’t want to spend your free time at an office. Or maybe people just don’t know how to hold their liquor anymore.”

Earlier

Casualties of the Economy: Holiday Bonuses and Office Parties

Economy’s Latest Victim: The Holiday Office Party

Resources

Companies Giving More Holiday Parties and Perks This Year…
CareerBuilder.com, Dec. 8, 2010

Largest Decline Recorded in Corporate Holiday Parties…
Amrop Battalia Winston, Nov. 15, 2010

2010 Challenger Holiday Party Survey
Challenger, Gray and Christmas, Nov. 30, 2010

The Belle of the Ball…or Lampshade Larry?
The Creative Group, Dec. 3, 2009

Lampshade Alert: Surviving the Company Party
by Eve Tahmincioglu
MSNBC.com, Nov. 29, 2010

The End of the Office Holiday Party
by Joel Stein
Bloomberg BusinessWeek, Nov. 18, 2010