Employees have come to expect a holiday party every year. In this age of cost cutting initiatives, employers can still have a wonderful party for their employees without breaking the bank.

An easy way to save money is to schedule the party during the day. As a general rule, lunch menus are always less expensive than dinner menus if you are hosting the party outside the office. There are generally more venues to choose from for an afternoon party and it is estimated that the cost savings on food alone can reach 20%. Employees generally like this format, since it eliminates the need to use personal time for a company event. If your budget allows, it is nice to invite the employees’ spouses and partners. This becomes less of an issue during a daytime event. If an event is held requiring an employee to use personal time to attend, it is almost essential to allow them to invite a guest.

However, unless your organization is capable of fully shutting down for the day (not generally feasible), there will be some employees not in attendance in order to keep the offices open. This, of course, will lead to resentment and facilitate employee complaints, which are never something an employer enjoys, especially when they are doing something nice for the employees. Another point to consider when you decide to change the format of the party is that employees will notice if there are obvious cost cutting measures and can begin to speculate on the financial health of the business as a whole.

No matter what time of day you decide to host your party, it is important to keep several things in mind:

A private room in any venue is always a better choice than a large table at a restaurant. It is not uncommon in that scenario to find that your company has paid for food and drinks for people who were not even included in the party.

It is always better in this age of political correctness to center your party around a “holiday” theme, instead of focusing on any secular themes or traditions. This can save many headaches down the road.

It is essential to monitor alcohol consumption carefully, or, to completely protect your company from liability, to not serve alcohol at all. We have all seen the office party where an employee or a spouse is over-served and makes a scene. It can be fun fodder for office gossip, but when your company can be held liable if an employee gets into trouble with the law after leaving your party, it is no laughing matter.

Many companies use the holidays as an opportunity to encourage charitable contributions. Instead of the usual Kris Kringle office exchange, ask employees to bring a toy to donate to a children's charity or non perishable foods for the local food pantry. Many employees like this format, because it takes the pressure off of them to buy gifts for fellow employees.

Whatever the format and venue, use the holiday party as an opportunity to thank your employees for a job well done. Whether the year was successful in terms of corporate growth and profitability, it is important to recognize the people who helped to keep the company running smoothly throughout the year.