Holiday Christmas Parties: Should You Be Mr. Scrooge Or Mrs. Thrifty This Year?

Financial services firms are canceling Christmas parties, deeming this an unseemly year for corporate celebration.

But just because the economy is in the tank, does this change the purpose of the holiday corporate party?

"Companies want to cut costs at the moment. But when times are hard you need leadership," says corporate psychologist Ben Williams. "It is about encouraging people and making them feel valued."

From The Financial Times: Tim Lindsay, London president of advertising agency TBWA, says the company believes cutting to the bone is not the answer. “We recognise that ad agencies are places where people don’t have their heads down all the time. You need room to play. Creating a relaxed, informal and enjoyable atmosphere is important, especially as ideas often come from unexpected places.” So, while TBWA’s festivities this year might be a little more modest, it will still be holding client and staff celebrations.