Executives Expect Cuts in Company Holiday Parties, Corporate Gifts and Holiday Cards, But Few Change Personal Vacation Plans

LOS ANGELES, December 17, 2008 – While the uncertain economy has frozen the time-honored holiday tradition of office parties, gift giving and card exchanges, it is not swaying executives from taking a family vacation this year.

The holiday survey results, generated from the latest Executive Quiz released by The Korn/Ferry Institute, the global leadership development and thought leadership think tank of Korn/Ferry International (NYSE:KFY), were tabulated during the months of November and December 2008. 

Corporate holiday parties are expected to suffer significantly this year.  Among companies that typically host holiday celebrations, 32 percent of executives expect this year’s party to be scaled back, and 30 percent say it has been cancelled outright.  Only seven percent expect a larger celebration than last year.  This trend indicates that the majority of executives may be disappointed; 55 percent say that holiday parties are “Great Fun”, while just seven percent say that they typically don’t attend.

Seventy-nine percent of executives say they expect the amount of business-related holiday gifts and cards to decline overall, and 68 percent say they will cut back on their own personal spending for business-related holiday gifts.  Just three percent expect to spend more than in past years.

While the economy has driven down corporate holiday spending, family vacation plans are holding strong. Forty-five percent of executives expect no change in vacation plans from last year, and eight percent even said they expect to indulge. Just 28 percent said they plan to scale back.

“It’s not surprising to see that so many companies have decided to forgo parties and other holiday perks during this turbulent time,” said Tierney Remick, senior client partner, Korn/Ferry International. “During this economic uncertainty, companies are more focused on meeting year-end projections, cutting non essential costs, streamlining operations and doing whatever it takes to retain top talent.” 

Methodology
The Korn/Ferry International Executive Quiz is based on a global survey of executives registered within the firm’s online Executive Center, ekornferry.com. Respondents from more than 90 countries, representing a wide spectrum of industries and functional areas, participated in the most recent Executive Quiz in November and December 2008.

About The Korn/Ferry Institute
The Korn/Ferry Institute was founded to serve as a premier global voice on a range of talent management and leadership issues. The Institute commissions, originates and publishes groundbreaking research utilizing Korn/Ferry’s unparalleled expertise in executive recruitment and talent development combined with its preeminent behavioral research library. The Institute is dedicated to improving the state of global human capital for businesses of all sizes around the world. For more information on the Korn/Ferry Institute, visit www.kornferryinstitute.com.

About Korn/Ferry International
Korn/Ferry International, with more than 90 offices in 39 countries, is a premier global provider of talent management solutions. Based in Los Angeles, the firm delivers an array of solutions that help clients to identify, deploy, develop, retain and reward their talent. For more information on the Korn/Ferry International family of companies, visit www.kornferry.com.

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