Companies cut holiday parties

PHOTOGRAPHER: Jill Bryce

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Typically 1,200 people are invited to KeyBank’s annual holiday party, but this year, instead of food and drinks, KeyBank clients and business leaders are getting a festive card.

Blame the economy.

Financial troubles have prompted some companies to cancel their holiday parties or rethink bonuses this year, while other companies are charging a fee for the party or cutting back.

Tom Mailey, spokesman at Stewart’s, said the company has a fairly conservative holiday gathering, which will take place. He described holiday bonuses as “small and conservative.”

“One reason the holiday party is small and conservative, and bonuses are small and conservative, is because of the employees’ efforts toward the Holiday Match,” Mailey said. Last year, Stewart’s presented a $600,000 check to charity to match what customers had contributed from Thanksgiving to Christmas. “The hope is we match more this year,” said Mailey.

KeyBank will give the party money to local charities. “This year, in recognition of the increased needs within our community, we have decided that in lieu of a holiday party, we will donate all these dollars to area nonprofit organizations,” reads the card the company sent out.

Jeff Stone, who became KeyBank’s Capital Region president earlier this year, began discussing the annual party in September with the 10-member management team. “Let’s think this through,” he said as he described the discussion. “Does this make sense?”

The team decided that it didn’t, and instead, KeyBank will donate $30,000-plus to local charities including the Adirondack Saratoga Chapter of the Red Cross, Umbrella of the Capital Region in Schenectady, Joseph House & Shelter in Troy and the Regional Food Bank of Northeastern New York.

Angelo Mazzone, owner of Glen Sanders Mansion in Scotia, Angelo’s 677 Prime in Albany and the Aperitivo Bistro in Schenectady, who was going to cater the KeyBank event, fully supports the decision, but it comes at a cost. Mazzone estimates that he’ll lose $5,000 to $10,000 because of the decision.

“We’ve had a bunch of banks cancel and other big companies cancel Christmas parties this year,” he said in a statement released by KeyBank. “We’ve got to go out and replace that. I think this December we’re going to take a big hit.”

Some companies may still have a party but are cutting back by having a cash bar instead of an open bar or hiring a DJ instead of a band — or charging employees to attend.

State Farm in Malta has a small company holiday gathering off site in December. “I am not aware of any changes for us, but it would depend on how many people sign up. There is a minimal fee. We will have to wait to see how attendance is,” said spokeswoman Freda Laiacona.

State Farm’s employees work as independent agents, and the company does not work on a bonus program.

Staff at the Raindancer, a steakhouse in Amsterdam, have been taking quite a few reservations for holiday parties, with many repeat customers. “It might be too soon; I think we can tell once Thanksgiving rolls around how this holiday season will be. So far, we are having quite a few parties compared to last year,” said manager Margie Schulz.

Typically, the Raindancer hosts about 50 parties during the holiday season. “So far, so good; we are crossing our fingers,” said Schulz.

And some companies are sticking to holiday traditions.

Schenectady International will hold a holiday event for employees.

“We think it’s important for everyone to celebrate together. We don’t have any plans for anything much different than the past,” said spokeswoman Juliana Lam.

Quad/Graphics in Saratoga Springs is holding its traditional family holiday party.

“We feel it’s important that even despite the tough economic times, we take time to recognize employees and their families,” said spokeswoman Claire Ho. “Everyone needs something to celebrate. This has always been our philosophy when times are tough. It won’t be an over-the-top extravaganza; it will be a wonderful gathering. We want people to have an outlet to enjoy themselves,” she said.

The party will be held right in the plant, which will be decorated, and employees are invited to bring items for local food pantries.

Usually, Quad/Graphics also has a themed party for adults in the spring, but it’s not having one in 2009.

“We made the decision some time ago to focus on the family party and forgo the adult party,” said Ho.