One of the staples of 20th-century business stories was the rowdy and expensive Christmas party. Even into the first decade of the 21st century, some companies went all out, and then some.

Needless to say, perhaps, the coronavirus year of 2020 is not on track to continue the revelry. Last year, 76% of companies told outplacement firm Challenger, Gray & Christmas that they were planning a Christmas party for employees. This year, just 23% are planning a party and three-quarters of those will be virtual.

Challenger, Gray polled 189 companies of different sizes and operating in different industries to arrive at this year’s numbers. Apparently, 1.3% (about two companies) are planning to hold in-person parties with no precautions against the spread of COVID-19. The survey results did not identify the companies that plan to host such an affair.

Andrew Challenger, senior vice-president at Challenger, Gray & Christmas, commented, “It is no surprise that many companies are forgoing the holiday party this year. It’s difficult to celebrate and implement all the precautions needed to keep everyone safe. The last thing any employer wants is an outbreak due to their year-end party.”

More than half of the companies surveyed (54.6%) will not hold a holiday party of any kind this year, the lowest rate since Challenger, Gray began tracking the data in 2004. Some 44% canceled their parties due to the COVID-19 pandemic, while 5.3% reported canceling the event in an effort to cut costs. A full 4% said they never hold holiday parties.

As part of the survey, companies were asked how soon they planned to bring all their workers back to the office. Nearly half (44%) remain unsure, while about 21% say early next year and another 9% say by the middle of 2021.

Challenger, Gray also asked if business conditions were better or worse due to the COVID-19 outbreak. More than half (52.3%) reported that business was worse and about 14% said it was better. Another 17% said there has been no impact, and a similar percentage said some segments of their businesses are up while other segments are down.

Andrew Challenger noted that it is “imperative that companies look for ways to celebrate their employees” this year. He added, “Millions of Americans are still out of work and many others are waiting to hear if their jobs still exist. Of those who are employed, many may be experiencing survivor syndrome or are dealing with other energy- and morale-sapping issues at home.”

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.