If you get an invitation to a company holiday party, you might be doing your career a favor by accepting it.

People who know how to "work the party room" could boost their career potential, according to a new survey by Challenger, Gray & Christmas Inc., an outplacement consulting organization.

The survey of human resource executives found that 79 percent of companies will be planning a holiday party this year, which is nearly the same number as last year.

What has changed is the percentage of companies willing to spend more to celebrate the holidays. Nearly one in three companies plans to boost party budgets this year, up from 23 percent in 2005. The average increase in this year's budget is 16 percent. Only 6 percent of firms are cutting the party budget.

Parties Getting Ritzier

"Companies are definitely in a party mood," said John Challenger, chief executive officer of Challenger, Gray & Christmas. "Despite high energy costs and a slowdown in economic growth in the second and third quarters, many firms still have managed to achieve record profits. It would not be surprising to see the return of some late-1990s, dot.com-style parties."

But could this year's holiday parties be the last hurrah? The Congressional Budget Office predicts that corporate profits will grow more slowly after this year and account for a shrinking portion of the nation's gross domestic product. According to its forecast, corporate profits will fall from 13 percent of GDP in 2006 to about 9.0 percent in 2016.

"Unless there is a dramatic economic downturn caused by recession or another Sept. 11-type national crisis, it is likely that holiday parties will continue unabated," Challenger said in a news release.

According to interviews with caterers, party planning organizations and party venues conducted by Challenger researchers, companies start planning their parties earlier every year.

In St. Louis, employers started booking their holiday parties with event planner Hermitage Communications in April. Eric Silvey Entertainment in New York started booking corporate holiday events in May and June. For Mark's American Cuisine, a Houston restaurant that hosts company holiday parties, every weekend is already booked from Nov. 20 through January.

The situation was not as bright in Detroit, where the economy has been deeply wounded by the downturn in the domestic auto industry. One caterer noted that business has been down for the past three years as fewer companies hold events. However, the caterer said that the few companies going ahead with parties are spending about the same as or even a little more than last year.

Free Alcohol More Common

Where firms appear to be spending more is on alcohol and off-site venues. According to the Challenger survey, 60 percent of employers plan to provide alcohol this year, up from 54 percent a year ago. Sixty-six percent are holding their parties outside of the office, compared with 55 percent in 2005.

"Employees beware: An off-site party with free-flowing liquor should not be an occasion to let loose and over indulge," Challenger said. "It is critical to remember that this is still a work function and anything you say or do could affect your standing with your employer. Whether one's standing in the company is positively or negatively affected is entirely up to the individual."

Challenger said holiday parties provide a great opportunity to socialize with senior executives you might never interact with in the office.

"Make an effort to break away from your comfort zone and introduce yourself to those who might help your career," he advised.

Oh, What To Wear?

According to Hilka Klinkenberg, founder of Etiquette International, a firm specializing in business etiquette, be sure dress appropriately for the occasion.

Klinkenberg said this rule especially applies to women who sometimes use company parties for strutting their stuff.

Anything short, tight or revealing should stay in the closet. You've worked hard to create a professional image, and revealing clothes can alter your coworkers' and boss' perception of you as a competent professional.

Behave Yourself

Holiday parties can be beneficial for everyone involved, but the event can give employers a severe case of the jitters.

Stories of excessive drinking, sexual advances, off-color and inappropriate jokes, vulgar language and even arguments and fistfights are legion. In some cases, they can lead to lawsuits, costing hundreds of thousands of dollars in attorney fees.

Labor lawyer Jim Hendricks, a partner in the Chicago office of Fisher and Phillips, said there are a lot of things a smart boss can do to minimize the danger of things getting out of hand. Among them, he said, are reminding employees that normal work rules and standards apply to parties and advising them to drink responsibly. He also advises against hanging mistletoe.

Challenger provided the following list of holiday party guidelines for workers to keep in mind when they attend this year's functions.

Arrive early: This might be your best opportunity to talk with senior executives while things are still relatively quiet.
Work the room: It is easy to simply socialize with the members of your department, with whom you work with day in and day out. However, you gain if you use this occasion to meet people in other departments. You never know who can help your career.
Do not over indulge: Free alcohol can quickly lead to excessive drinking. Stay in control. You do not want to do anything embarrassing to you or your employer. Even if your alcohol-induced actions do not get you fired, they could hurt your chances for advancement.
Be friendly, but not too friendly: The company party is not the place to try out your latest pickup lines. The risk of such behavior being seen as sexual harassment is high.
Avoid talking business: This is not the time to approach your boss with a new business idea. Save that for Monday morning. Instead, find out about his or her interests outside of the office. Find a connection on a personal level. That connection will help you on Monday when you bring up the new idea and it could help when it comes time for salary reviews.
Attend other companies' parties: Only 21 percent of company parties are employees-only. If a friend invites you to his or her company party, you should go. It is an opportunity to expand your professional network, which is critical in this era of downsizing and job-switching.

Here's a list of business party etiquette from Hess and Lou Kennedy, nationally known authors on business etiquette. This is a list of no-nos:

Mistake No. 1: The blow-off. The biggest error is not going to an office party that is a "must-attend" event.
Mistake No. 2: Forgetting the boss is watching.
Mistake No. 3: T-shirts and sandals. Inappropriate dress at an office party draws attention, but the wrong kind.
Mistake No. 4: Becoming the business-talking bore.
Mistake No. 5: Me, Me, Me.
Mistake No. 6: Foregoing the opportunity to introduce yourself to senior managers.
Mistake No. 7:Talking about pay.
Mistake No. 8: Hanky-panky. No longer is an office party an excuse for employees to become intimate.
Mistake No. 9: Partying a little too hard, rather than viewing the party as an extension of the office environment.
Mistake No. 10: Drinking excessively.