It’s been a difficult year for everyone, and the economic downturn has affected how companies celebrate the holiday season. In a time of layoffs and furloughs, it just doesn’t seem right to celebrate lavishly. Still, even if you're mentally prepared for a scale-back, the severity of the actual numbers may surprise you. The annual Challenger Gray & Christmas survey showed that just 62% of businesses will have a holiday party this year. That’s down from 77% in 2008, and 90% in 2007 – meaning that 28% of businesses have dropped the custom in just two years. Want more proof? In her recent post “The 2009 Holiday Party: Holding On...” Ann Bares of Compensation Force cited some research from BLR about the state of the 2009 holiday party:

• For 37% of employers, the budget will be about the same.
• For 24% of employers, the budget will be smaller.
• 20% say they had no holiday party last year and won't have one this year either.
• 14% say they had one last year but won't this year.

In a nod to tough times, Coca-Cola execs said that they would be making a donation to a hunger-prevention charity instead of throwing a holiday bash – for the second year in a row. Individual departments will be encouraged to throw potluck lunches to celebrate instead, reported business publication TheStreet.com. Some business owners who are really getting into the right spirit this year were James and Melinda Hemdon, profiled in the Orange County Register story “O.C. businesses trim, not end, year-end parties. ” The couple, who own Scuba.com, used to throw a catered dinner cruise. This year, though, in an attempt to scale back, they're cooking a homemade dinner at their own house for staff. It seems to me that employees who are facing more work for less pay, along with the loss of colleagues and an uncertain future, are likely to appreciate these gestures of restraint very much. It's good for members of an organization to get together and appreciate what they have together, without spending money in such a way that calls their judgment into question. "Low-key" seems to be the watchword as we close out a very tough 2009. How is your company handling the 2009 holiday party? Are you part of the 14% that have retired the office party this year? Do you have any creative ideas for celebrating on a budget? Please share your thoughts in the comments.