This is a tough year for year-end bonuses and holiday bashes. Many businesses are worried about disappointing people if they drop year-end traditions on the one hand and angering people if they spend money that “could go toward more important things like salaries and jobs” on the other. So what’s a business to do?

People need a bit of celebrating, socializing, and acknowledgement of their efforts and accomplishments. Here are some ideas I’ve collected from clients and other sources.

• Hold a holiday potluck in the office and share recipes or hold it at the CEOs home instead of going out
• Have a meal catered on site instead of eating at an expensive restaurant
• Celebrate with a luncheon instead of dinner, which is generally more expensive
• Close the open bar 
• Provide hors d’oeuvres at a restaurant after work and let employees buy their own drinks after the first round
• Hold the holiday party on a weekday, not a weekend when rates are usually higher and parties last longer
• Take everyone bowling instead of hosting a sit-down meal
• Combine your party with those of other organizations – suppliers, customers, neighbors – to reduce per person costs
• Participate in an open holiday party hosted by a restaurant or caterer
• Encourage departments to go out together for a long, but unsubsidized, lunch
• Encourage smaller parties in several private homes and provide hams or deli platters, etc., to ease the burden on the hosts
• Arrange for employees to volunteer together at a food kitchen, shelter, or other charitable activity during a paid work day in December
• Reserve one or more parking slots closest to the door for use by employees selected for special acknowledgement each month by peers
• Celebrate with periodic (monthly or bi-monthly) breakfasts starting in December and running throughout 2010
• Honor a different department at each breakfast
• Barter with cash-strapped customers to obtain suitable gifts for employees or departments
• Make the rounds to thank employees face to face for their contributions to the business
• Clear the snow off employee cars after the first snowstorm of the season or periodically during the winter
• Meet employees at the door in the morning after New Year’s to shake their hand, thank them, and wish them a great New Year
• Hold an office decorating contest and restrict materials to recycled paper and tape and give employees time to create
• Give employees an extra paid day or half day off before the holidays in lieu of a bonus
• Hold a white elephant gift exchange where everyone contributes an inexpensive gift
• Recruit or hire musicians and meet in the cafeteria to sing and hear each other’s traditional carols and songs
• Have groups of employees rewrite traditional holiday song lyrics to extol their work group accomplishments and then enjoy the performances

Whatever you choose, do it with sincerity and not with guilt. Show your appreciation, celebrate this year’s successes, have some fun, and build hope, enthusiasm, and camaraderie that will strengthen your company’s ability to face the challenges of the new year.

If you have other ideas, please feel free to comment!