Economy turns out to be a year-end party-pooper
Businesses tightening belts rather than buying drinks
YEAR-end office parties in 2016 are a shadow of the lavish bashes thrown a decade ago.
Belt-tightening by businesses in a tough economic climate means fewer big Christmas parties.
According to event planners, companies have been scaling down by about 20%, with some opting for casual gatherings attended by staff and their families.
Ten years ago, companies like Vodacom spent millions on sumptuous Christmas parties for staff and guests. In 2005, the cellular giant spent R30-million on a party for 7 000 guests and staff, at which boy band Westlife performed.
Other big corporates treated staff to weekend getaways at game reserves.
However, Vocacom said it scaled back some years ago: now Cape Town staff and their families enjoy an outing to Ratanga Junction, while Johannesburg employees spend the day at Gold Reef City.
Alastair Laing, CEO of Unlimited Events, said his company found that about 70% of its clients were tightening their belts.
“We have seen companies cancel events totally, when normally they are our bankers. Family days have been on the rise.
“However, your very big corporate will always be going bigger and better with big production spend. Most (99%) of our events are done at venues or at offices in the basement, or under a tent,” said Laing.
He said those with big budgets still requested top DJs or bands.
“They also go big on stage set design and audiovisual lighting, projection mapping, LED screens. Companies will pay R500 000 and upwards for this,” said Laing.
Stephanie Scorgie of events management agency Cievents said its budget-trend analysis, conducted recently, showed companies were spending 20% less on year-end functions.
“They have gone for smaller departmental year-end functions as opposed to big-company year-end celebration. The functions have also become more casual and have gone from evening events to afternoon events at the office.
“Food trucks are becoming more and more popular. Clients want a casual environment.”
Scorgie said companies were spending between R300 and R650 a head.
“Companies have definitely become more budget conscious in line with South Africa’s economic state.
“Massive year-end parties are few and far between,” Scorgie said.
“Last year a client said they weighed up whether staff would appreciate a pay increase rather than a one-day event. Having said that, it is a fine line because it can also be viewed by employees that they aren’t appreciated, which is usually the purpose of a year-end function.”
Lindy Srubis of Event Affairs said celebrations had gone from extravagant affairs to cost-effective events.
“Although the companies want to spoil their staff, they find it difficult to justify spending this money when there are other more pressing expenses to think about.”
She said some companies were willing to spend between R750 and R1 500 a head.
Economist Dawie Roodt said small and medium-sized businesses were suffering the most.
“Companies are definitely scaling PARTY LINE: Many businesses are cutting back on year-end parties like this one down on their year-end functions.
“It has become more informal than in the past. They now go for cocktail events where people mingle as they walk around instead of formal seated evening functions.”
He said events were becoming more casual and a braai with families, with modest gifts, was the order of the day.
Patrick de Bree, founder of Oyster King Food Theatre Group, provides a combination of entertainment and dining. He said companies were being a “little more careful when it comes to entertaining”.
Carina Bruwer, CEO of Gigster, an online entertainment booking platform, said companies were making do with half of the budgets they had two to three years ago.
Last year the Durban Chamber of Commerce and Industry hosted a braai for staff at the Beachwood Mangrove Nature Reserve at the mouth of the Umgeni River in Durban North.
Staff said it was their best ever, a spokesman said.
“Generally the chamber has formal dinners. At the braai they got to mingle,” the spokesman said.
Companies want to spoil staff, but they find it difficult to justify spending this money