You want to look good, but you definitely don't want to look sleazy. Skip the plunging necklines and micro-miniskirts. If you are new to the company, ask your co-workers what they are wearing to get an idea of what's consider appropriate.
Unless the party is at a totally casual venue, you want to dress up. It's the holidays afterall, and a fun opportunity to look your best. Consider the location and time of day when picking out your outfit. A lunchtime party at a local restaurant is very different that an evening affair in a upscale hotel ballroom.
If it's a cocktail party, you are going to be doing a lot of standing. Save your 5-inch stilettos for another time. If you love heels, keep them to three inches or less, and consider a thicker stacked heel or wedge rather than an ultra skinny heel. Strappy sandals, peep-toe pumps and sweet slingbacks are all fantastic choices.
That red and green reindeer sweater your grandma gave you can stay at home. Same for that all-over sequin cocktail dress. Though a red dress is a fabulous option, you don't need to be decked out like a Chistmas tree. If you want to add some shine with sequins, beads and metallic fabrics, do it subtly rather than head-to-toe glitz.
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