For a company that's cutting costs these days, the annual holiday party is an easy target. But there have been fewer cancellations in the tech industry than one might think.
True, eliminating an evening of eggnog and sugar cookies won't help an ailing balance sheet that much; in the current financial downturn, it has a lot to do with appearances, too. "It's the economy, definitely, but it's also a lot of public perception," said Celia Chen, a New York-based event planner who runs the blog Notes on a Party.
"People don't want to seem like they're being gratuitous or over-the-top when their colleagues have lost their jobs. It's more of a responsible way to run your company," she said.
On the other hand, there's a delicate balance between appearing prudent in the face of hard times, and keeping employee morale afloat. Many tech companies are in trouble, but for the most part they are not in meltdown mode like financial services companies or in a continued downward spiral like print media companies. Perhaps because of this, event planners say they haven't seen the same cancel-everything attitude when it comes to tech companies that they've seen in other industries.
"In the financial industry, their budgets are significantly lower than last year. In the tech world it really depends on the company," said Nate Valentine, a partner in the San Francisco events firm Vintage415. "You're seeing companies that are new, emerging companies that are doing events that haven't done events in the past, because they have the budget (now)."
Things are very different in traditional media companies, many of which have acquired tech start-ups and recently expanded their digital divisions--they're hurting, badly. Hearst Publications, which shuttered three magazines, canceled its party. So did Viacom, which is rumored to have layoffs coming before the end of the year. But many smaller media companies and tech start-ups have never had a large-scale holiday party, and probably aren't hiring high-end caterers or renting out big nightclubs for open bars.
The appearances factor comes into play here, too: employees of some smaller companies say they haven't even heard yet about whether the holiday party is on the books or not, indicating that a few executives are still vacillating on how appropriate it would be to throw a company party amid layoffs. "I haven't actually heard either way yet (about a cancellation)," said a representative from one San Francisco-based start-up that recently cut several dozen employees.
"I can't see us not having (a party)," said an employee of one New York-based blog company that also went through a fresh round of layoffs. "It'll suck, but we'll have it, I'm sure."
For larger companies, scaling back a holiday party can be particularly appearances-driven because there's a good chance they've already paid for much of it. "If you're a really big company, you're putting a deposit down on a Christmas party probably in September, if not August, because you have to accommodate a large group and it's been allocated in the budget for the year," Chen said.
There are signs of cost-consciousness everywhere: Valentine said that recently a group of several dozen Google employees in the Bay Area had arranged for an open bar at one of Vintage415's venues without actually booking the club. In New York, news outlet The Daily Beast reported that Google was renting less glitzy venues for its Gotham holiday parties. (Representatives from Google were not immediately available to confirm the report.)
"They'll still find a way to celebrate," Valentine commented. "It's just a different way to celebrate."
Viacom, for example, canceled its companywide party as well as parties for big divisions like MTV Networks and Paramount. "All employees across the country are getting two extra vacation days in exchange," company spokesman Jeremy Zweig told CNET News.
One member of Viacom's MTV Networks said that he speculates individual divisions of companies may come up with their own smaller celebration plans. "I'm sure we'll have drinks somewhere, at some point," said the Viacom employee, "even if it's just my team."
But a bigger complication arises when it comes to companies that have traditionally invited clients, media, or analysts to holiday parties. Canceling a party to which non-employees, particularly non-employees with an indirect stake in the company, are invited, could skew perceptions about that company's health. Both Google and Facebook, for example, have already sent out the invitations to their holiday media parties, fairly low-key affairs at company headquarters where handfuls of bloggers and journalists show up to schmooze with executives.
That said, the image issues work in the other direction, too. Chen said that a new-media company might want to think twice before throwing a big holiday party where one of the goals is to get loyal advertisers nice and tipsy. "Advertisers, I think they want to know that the companies they're advertising in are fiscally responsible," she speculated. "I think advertising is taking a hit in its own light, so I think the general feeling is that we have to be respectful of what's happening with so many people being laid off. And people really admire companies that are trying to do the right thing."
In the end, it's a tough executive decision. Unlike, say, the financial services industry, there really is no clear-cut answer in the tech sector to the question of whether a holiday party should stay on, scale back, or get the ax altogether. But event planners agree: it's never a good idea to throw a party just to act like things are all right.
"It's very difficult to celebrate with your senior executives when you have to look your staff in the face and say, 'We just had to let half of you go,'" Chen said.
Electronic wedding invitations aren't exactly Adam Lowe's cup of tea.
As host of the popular Modern Manners Guy podcast, Lowe attempts to marry--pun completely intended--the culture of traditional etiquette with a digital world that increasingly threatens to subvert its longstanding norms. And he admits up front that he thinks using the likes of Evite and MyPunchbowl for formal occasions is "a terrible idea" for the most part; except when difficult circumstances demand it, as was the case when he received a digital wedding invitation recently. There was an illness in the groom's family, and the date of the wedding had to be pushed up to the point where there was no longer a wide enough time frame to order formal paper invitations. "(They) changed to Evite for expedience's sake," Lowe explained.
"I would've been hard-pressed to come up with an example where (electronic wedding invitations) would be acceptable except when real life intervenes," he added.
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But "real life" gets in the way in more ways than we think, and people like Lowe may be in the minority soon. The eco-consciousness movement is encouraging us to cut down on unnecessary paper use, and tough economic conditions compel us to be thrifty. And when technology is able to cut down on hours of guest-list organization, the digital route is an obvious one--especially for a generation of young adults that has always used Google search in lieu of the Yellow Pages.
Online invitation services like the InterActiveCorp-owned Evite, the Events application on Facebook, as well as smaller start-ups like Socializr and MyPunchbowl, are nothing new. They've more or less taken over the RSVP duties for backyard barbecues, Halloween parties, birthdays, and even holiday cocktail soirees. Paper invitations still reign at the upper echelon: weddings and high-end corporate events, as well as other formal occasions like bar mitzvahs, proms, and charity fundraisers. But at this point, there are only a few tenuous standards of etiquette that are keeping this relic of the analog age alive and kicking.
"In the past, I never would have thought to use an electronic invitation, because I don't know if it was as much of a formality as it was about brand awareness and being so protective over how the brand was portrayed," said Celia Chen, a former luxury-brand event planner who now writes the blog Notes on a Party. "Image was so important: the paper stock, the font. We would have invitation designers, and we'd go through multiple edits."
But people are going digital, and Chen said that recipients have grown acclimated to it, especially as the younger generation grows up. "I think it's generational," she said. "People always wanted to speak to the hostess when they made a reservation at a restaurant. Now they just use OpenTable." Indeed, a 25-year-old getting married in 2008 likely had an e-mail address before he or she had a driver's license. Teenagers celebrating bar mitzvahs and Sweet 16s can't remember a time when the Internet wasn't everywhere.
One of the biggest drawbacks to electronic invitations for an event planning veteran like Chen was that they were neither attractive nor customizable enough for upscale or formal events. Facebook invitations cannot be modified beyond the social network's blue-and-white design, and Evite still pretty much relies on clip art. Though Evite still owns the lion's share of the digital invitation market, with stats from Hitwise showing that its traffic far eclipses that of its smaller rivals combined, alternatives like MyPunchbowl, Renkoo, Centerd, and Socializr offer different looks and feels for different kinds of events and hosts.
Chen has since started using Pingg, an invitation start-up geared toward a more discerning crowd. "There was a whole segment of event types that people just did not want to use electronic invitations for," Pingg co-founder Lorien Gabel said of his rationale behind creating the company, which gives the option for hosts to accompany their digital invites with print versions for all or some of the guests. "I'd like to believe that because of how we do things you also get the aesthetic aspect of it, you don't have to sacrifice it."
With the option of sending a pretty, well-designed electronic invitation now out there, they become more of a viable alternative for organizers of higher-end events who happen to be conscious of environmental impact, cost, or efficiency. "Not having to use paper is huge when you're trying to be eco-conscious," Celia Chen said. "It's better for the environment, it's cheaper if not free, and you're collecting the majority of your RSVPs in a place where there's no human error. People either hit 'yes,' 'no,' or 'maybe,' and it'll download into a list."
Manners expert Lowe still isn't convinced, saying that the chance to be economical isn't enough to sway him. "There are always ways to do (paper invitations) in a cost-effective way," he said. "You can get paper, print them yourself, hand-write them." As for being environmentally friendly, "(that) point is actually quite well-taken because it does create quite a lot of paper waste. What might be interesting is to see if there are people or companies that come up with very low-impact ways of generating invitations that are either easily recyclable or directly reusable."
But Lowe acknowledged that for efficiency's sake, as well as to fit the culture of the digital age, sometimes there are reasons to try and bridge the gap. He suggested that for events like weddings and bar mitzvahs, organizers could send out an electronic "save-the-date" in advance that would allow guests to opt out of a paper invitation if they preferred the digital route.
"If you really know your guests and you really know it's a preference for them, I think that's great," Lowe said. "Absolutely times are changing, and what is appropriate changes."
Proponents of digital invitations admit that there are lingering reasons, beyond etiquette, that sometimes compel hosts to stick to paper invitations. Chen said that the occasional client would raise the question that e-mail invites might not make it past a spam filter, and added that others were concerned about how much of a splash an e-mail could possibly make in an age of clogged Outlook inboxes.
"At New York Fashion Week, you've got 12 days of shows and events and it's highly, highly competitive," Chen said. "If you don't send out a paper invitation, (it doesn't work). There's something about it landing on someone's desk and having it be tactile."
But if you look at the ultimate gauge of formal events--weddings--things are certainly changing in favor of the digital. "A large, not quite a quarter yet, but about 20 percent of our events are actually wedding-related," Lorien Gabel said, saying that plenty of bachelor parties and bridal showers show up on Pingg.
As for invitations for wedding ceremonies themselves, Gabel said they're creeping in. "I see a couple of them a day," he observed.
If Going.com is for sweaty nightclub parties, Meetup is for business mixers, and Yahoo's Upcoming is for geeky hackathons, a new site called Center'd is for your church picnics.
The event organization site is clearly designed for a crowd looking for a simple online planning experience rather than the Web 2.0 maximum, as well as those looking to collaborate with other community members. It evolved out of a project called Fatdoor, shaped by user feedback that (among other things) changed the potentially offensive name.
As with its Fatdoor predecessor, Center'd aggregates local business ratings and reviews from Yelp and MenuPages and lets members tag venues. There are a few new features that the likes of Upcoming haven't come up with yet, and most of them deal with group-organized events. If you're not sure when or where to hold an event, for example, you can provide a handful of options and let your guests vote. You can also put out a call for volunteers and specify exactly what they'd like you to do.
But Center'd, from what I've seen after playing around with the beta version, doesn't offer nearly enough to make it a truly worthwhile entry into the "event site" niche. That said, it's an easy-to-use site with a clean interface and stands a chance of appealing to the luddite niche.
Indeed, the site doesn't even classify its early phase as a "beta," opting instead for the decidedly lower-tech "first draft."
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