How to Plan a Company Holiday Party on a Budget: 2026 Guide

How to Plan a Company Holiday Party on a Budget (Without Making It Awkward)

It is mid-October, which means the best December venues are already filling up. If you have been handed the job of planning your company’s holiday party, you are probably juggling two worries: how to keep costs down, and how to make sure the evening is something people actually enjoy.

A good company holiday party doesn’t need a big budget. It needs a clear goal, an early start, and a few sensible decisions about the date, the food, the drinks, and who is included. This guide walks through each of them. It uses survey data, HR guidance, and budget advice, and it includes a simple timeline you can follow from now until the party. It is general information, not legal advice, and some of the legal points are specific to the United States, so check your own local rules and your HR team.

First, Decide What You Are Trying to Achieve

Many companies still hold parties, with tighter budgets

The consulting firm Challenger, Gray & Christmas surveys HR and business leaders every year about holiday parties. Its most recent survey that I could find, from late 2024, covered 173 respondents. It found that 64% of companies planned a holiday party, the same as the year before. It also found that 17% planned to reduce party spending, up from 8% in 2023, and 2% were skipping celebrations entirely. Virtual events had risen to 4.5% from 3.9%. It is a small survey, so treat the numbers as a snapshot and not a precise measure of all employers.

The message for planners is simple: parties are still common, and tight budgets are normal. You won’t be the only one trying to do more with less.

Ask what the party is for

Before you book anything, write down the goal in one sentence. It might be to thank people, to bring remote and office staff together, or to give teams a relaxed evening together. Your answer will shape every choice that follows.

It is also worth asking whether a party is the best way to get there. SHRM, the HR professional body, suggests employers ask whether the risk is worth the reward and consider alternatives, such as a gift card, a pizza party, or a volunteering day. A good lunch with no alcohol can sometimes do more for morale than an expensive evening event.

Ask your team

A short, anonymous survey takes ten minutes and can save you from planning the wrong event. Ask whether people prefer lunch or evening, what food and activities they’d enjoy, and whether anything would stop them from attending, such as childcare, travel, or religious observance. You may find that what people want is simpler and cheaper than what you expected.

Set the Budget and Pick the Date

Start with a cost per person

Decide the total budget first, then divide it by the number of expected guests. That gives you a cost per person you can check every decision against. As an illustration only, not survey data, a company with 40 guests and a $2,000 budget has $50 per person to cover food, drinks, venue, and activities.

A rough split can help you start. These are my own example figures and should be adjusted for your location:

Keep the buffer. Small extras, such as extra chairs, a late delivery fee, or a few more guests than expected, add up quickly.

Choose the date carefully

The date affects cost, attendance, and behavior. A budget advice post from an events vendor says off-peak dates can cut venue costs dramatically, since many venues want to fill quieter slots. Because it comes from a company that sells team events, treat it as a general tip, but it matches common sense: a Tuesday or Wednesday evening, or a date in early December or in January, is often cheaper than the busiest Friday in December.

SHRM’s guidance points out that the day and time can affect behavior, and suggests a late-afternoon event with set hours, or a lunch without alcohol. It also notes that Friday or Saturday evenings may lead to wilder behavior than weeknights.

Think about December’s other holidays

Many religions celebrate holidays in December, so SHRM advises considering this when choosing a date. Checking a multi-faith calendar takes five minutes and avoids excluding anyone by accident.

Book early

If you want a particular venue, caterer, or entertainer, contact them now. Popular dates go first, and you will have more room to negotiate if you ask early.

Venue, Food, and Fun on a Budget

Venues that cost less

You don’t need a hotel ballroom. The events vendor suggests options with more character and often lower prices, such as art galleries, community centers, and coworking lounges after hours. Some restaurants and cafés offer lower minimums on quiet nights. Your own office can work too, with some decoration, if you have the space and permission.

Food that suits a mixed group

Simpler menus waste less and cost less. Ideas that suit a budget include:

• DIY stations, such as a baked potato bar, taco bar, or build-your-own salad.
• A selective potluck, where the company provides the main dishes and employees bring desserts or sides. Keep it optional, and don’t put pressure on anyone to cook.
• Local vendors, such as bakeries, food trucks, or a nearby restaurant’s catering menu.
• Plant-forward menus, which suit many dietary needs and can be cheaper, with optional meat on the side.

Ask about dietary needs and allergies in the invitation. Label each dish, and have at least one option that works for guests who avoid common allergens or meat.

Activities that don’t need a stage act

A paid performer isn’t necessary. The vendor’s blog suggests participatory ideas such as cookie decorating, a team gingerbread house contest, a photo scavenger hunt that mixes departments, team trivia, or a talent showcase. Add a playlist built from submissions by employees. These cost little and give people something to do besides standing with a drink.

Ask local businesses for help

The same blog notes that local businesses may sponsor an event if your employees are their customers, and that product donations or service discounts are often easier for them to give than cash. If you try this, be clear about what the business gets in return, and do it early.

A note on sources

The vendor sells team events, so its advice may favor its own products. I have used only the general ideas that make sense on their own, and I’d suggest you do the same.

Keep It Inclusive and Low-Risk

Most holiday parties go well. The ones that don’t usually go wrong in a small number of predictable ways, and a bit of planning helps. Remember that this section is general information. Rules differ between countries and US states, so check with your HR team or a qualified adviser.

Make attendance voluntary

SHRM says it is important to make attendance voluntary, because some workers may not want to attend events tied to a religion or practice, or where alcohol is served. A US law-firm commentary adds that mandatory or strongly encouraged attendance may mean employees have to be paid for their time under many state wage and hour laws. If your party is during work hours or counts as a work function, check this with HR.

Keep it inclusive

SHRM advises celebrating the workforce rather than a particular holiday, and having a diverse planning committee. Calling it a “holiday party” or “end-of-year celebration” and avoiding religious symbols as the main theme helps everyone feel welcome. Also think about practical access: step-free venues, quiet spaces, and food for different diets.

Plan the alcohol carefully

If you serve alcohol, SHRM and the law-firm commentary suggest several ways to lower the risk:

• Consider beer and wine only, or a limited number of drinks per person, for example two drink tickets.
• Hire a licensed caterer or professional bar staff, with appropriate insurance, and ask them not to overserve.
• Serve plenty of food and offer good non-alcoholic options, such as a signature mocktail.
• Stop serving alcohol well before the party ends, and offer dessert and coffee afterwards.

SHRM also notes that drink tickets may not stop everyone from overdoing it, so the setting matters as much as the rules.

Help people get home safely

SHRM suggests employers may want to offer a shuttle to public transport or pay for taxis and ride-hailing. A simple message in the invitation, with the arrangements, shows you’ve thought about it.

Set expectations on conduct

Potential problems include bullying, harassment, and accidents. Remind people ahead of time that your normal workplace policies, including anti-harassment rules, still apply at an off-site party. Leaders should set the example, and staff should know how to raise a concern.

Include remote workers

If part of your team works remotely, consider a smaller in-person gathering with a virtual option, such as streaming a short part of the event and sending a snack kit or a delivery voucher. The Challenger survey found that 4.5% of companies held virtual parties in 2024, so it is still a minority choice, but it is a way to avoid leaving remote colleagues out.

A Simple Timeline and What to Do Afterwards

Your timeline from now

Here is a suggested schedule, counting back from a party in mid-December. Adjust it to your date.

• Now to end of October: Set the goal and budget, ask for staff input, and check the calendar of religious and local holidays.
• Early November: Book the venue, caterer, and any entertainment. Send a “save the date.”
• Mid-November: Send the full invitation with the time, place, food and drink details, a question about dietary needs, and transport arrangements. Make clear that attendance is voluntary.
• Early December: Confirm numbers and final orders. Plan the activities and the playlist.
• A few days before: Remind everyone, and walk through the space for anything that could cause a trip or fall.
• Party day: Start food early, keep the bar to your plan, and have one person responsible for people getting home safely.

Measure what worked

The events vendor suggests sending a short survey within 48 hours and tracking cost per attendee. You don’t need special software for this. A three-question form asking what people enjoyed, what they would change, and whether the timing worked is enough. Compare the results with your budget so next year’s planner has a head start.

A short checklist

• Write the goal in one sentence.
• Ask staff what they would like.
• Set the total budget and a cost per person.
• Choose a weekday or off-peak date, and check holiday calendars.
• Book early.
• Keep food simple, and ask about dietary needs.
• Use low-cost activities.
• Limit and plan alcohol, and offer good non-alcoholic drinks.
• Make attendance voluntary and the event inclusive.
• Arrange safe rides home.
• Remind everyone that normal conduct policies apply.
• Send a short survey afterwards.

The best holiday parties aren’t the most expensive. They’re the ones where people feel included, relaxed, and thanked, and a thoughtful plan on a modest budget can do that.