As companies cut corners, are holiday parties the next perk to be chopped?

This year’s corporate holiday parties are not expected to rival the elaborate celebrations of years past. And in some companies, even the modest parties will become more spartan.

The weak economy has firms scaling back banquets in favor of hosting parties inside the office. The other option is to cancel the affairs altogether.

Kim Klopstock’s gourmet catering service, Lily and the Rose in Saratoga Springs, lost a party of 100 this year when the employer decided to give bonuses instead.

“But I also have businesses that have never done parties before, now doing parties. I’m seeing more doctor’s and dentist’s offices and businesses that normally don’t do anything,” said Klopstock, who also owns Fifty South restaurant in Saratoga Springs.

Now, more than ever, employers want their employees to know that things are OK, she said.

Klopstock expects some business clientele who typically host parties in their homes will opt for a restaurant party, as it’s about 30 percent cheaper than having a party catered (with having to set up, serve and clean up, fully staffing parties in someone’s home can get expensive).

The 20-year low

Only 81 percent of businesses will have some type of holiday celebration this year, the lowest level in 20 years, according to an annual survey from Manhattan-based executive search firm Battalia Winston Amrop.

Additionally, 37 percent say their event has been canceled or scaled down because of the economy. That’s almost double the 19 percent that were affected last year.

To cut back on costs, many companies won’t serve alcohol at their holiday parties this year. Only 71 percent will offer alcoholic drinks this year—down from the survey’s high of 90 percent in 2000.

Colin DeMers, managing partner at Century House in Latham, said his overall holiday bookings are strong. What’s changed, though, is the scope of those parties.

“People are a little more cautious. They’re maybe cutting back on the extravagant items, but they still want to take care of their staff,” DeMers said.

In an economic downturn, employee appreciation walks a fine line.

“Companies don’t want to give the perception that they’ve cut back in any way. But they also don’t want to appear ostentatious or flashy,” DeMers said.

At Mallozzi’s Restaurant in Rotterdam, companies are finding creative ways to cut costs without sacrificing tradition. A few companies that once provided four-hour open bars are now offering free drinks for only an hour or two. Others have shifted from hand-delivered hors d’oeuvres to sit-down meals, where it’s easier to control costs.

“They’re still coming in so far,” co-owner John Mallozzi said. “But there’s times you do get that feeling ...”