Businesses Reconsider the Holiday Handout

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Beyond holiday parties, many large employers said they are planning group activities such as volunteering in a soup kitchen or sponsoring employee gift exchanges.

Anxiety About Giving to the Boss

Taking a pass on the holiday party this year may not be such a sacrifice for the employees whose companies won't be hosting. Of the large-company employees surveyed, 27% said the parties are "fun and interesting," 48% said they could "take it or leave it" and a small number of employees said they would avoid the company party "at all costs." "I think that shows that employers may not be in touch with what their employees really want," Happ says. "I like to think I'm on the pulse of the people who work for me, but it's really hard to know."

Workers are split about whether they should give something to their boss, the gifting survey showed. Nearly half said it would not be a good idea because giving a gift to their employer would be inappropriate, unwanted or could be considered "kissing up." The other half said they would send their boss a gift, either because they have a good working relationship, consider the boss a friend, or feel a gift for the boss is expected. "There's a lot of the anxiety and stress around giving gifts in the office context," Happ says. "It's hard to know what's appropriate, what's not offensive, or whether you should give something like a charitable donation."

Thinking of Their Futures

When asked about clients, 59% of small business owners said they would spring for holiday acknowledgements this year, compared to 70% in 2006. The most popular client gift choice among small business owners was cards and calendars, followed by gift cards, fruit and food baskets, company-branded gift items, donations to charities, flowers and plants, and wine or liquor.

Worries about prospects for the 2008 economy may be behind entrepreneurs' thinking this year, Bredin says. "According to the survey, while 64% of small business owners are positive about the future economy and growth, many agree that rising interest rates and the downturn in the housing market have had a negative effect on their business."

Karen E. Klein is a business journalist who covers small-business issues for several national publications. She writes her Smart Answers column twice a week.