| Overview | | | | before. For instance, when all titles and specialty |
| 2006 was a good year for the economy and the | | | | categories are combined on a national basis, corporate |
| public relations business in general. Companies of all | | | | communications professionals averaged bonus |
| sizes reported steady revenue growth and | | | | increases of 6.2% (last year's increase was 23.7%), |
| respectable profit margins. From our executive search | | | | compared to PR agency personnel who came in with |
| perspective, we have seen more foreign companies | | | | a respectable 11.2% gain (last year's increase was |
| and PR firms commit to a New York presence than | | | | 20.2%) in bonuses - nearly double their corporate |
| ever before. And yes, just about everyone who | | | | counterparts. |
| sought a PR job had found one in 2006. This trend | | | | It would appear that even though the PR industry had |
| seems to be continuing through the start of 2007. | | | | a relatively solid revenue growth year, base salaries |
| Salaries | | | | remained flat or slightly up. To even the gap, savvy |
| Overall, average corporate communications base | | | | managers added bonus incentives to create a more |
| salaries increased a mere 3.3% compared with the | | | | competitive overall compensation environment so as |
| previous year's 7.6%. Conversely, average PR agency | | | | to keep their best people happy. |
| base salaries declined an overall -3.2% compared to | | | | "The PR agency landscape is now dominated by |
| the previous year's increase of 8.9%. | | | | global communications conglomerates that usually pay |
| Taken separately, the eight "key metro cities" (those | | | | bonuses on a more consistent basis. In addition, the |
| with the greatest concentration of PR professionals), - | | | | impending shortage of skilled PR practitioners will force |
| New York, Atlanta, Chicago, Los Angeles Boston, | | | | agencies of all sizes to invent creative ways to |
| Dallas, Washington DC, and San Francisco - posted an | | | | compensate their personnel in order to attract and |
| average salary decline of -2.6% for PR firms and an | | | | keep the best candidates," said Mr. Spring. |
| average increase of 2.8% for corporate | | | | PR Agency Hourly Billing Rates |
| communications departments. | | | | Not much exciting news here. The slowing increase of |
| Typically, corporate communications average base | | | | hourly billing rates continues from 2005 to the present. |
| salaries exceed PR agency salaries year after year, | | | | We see this as a continuing "correction" of hourly rates |
| with the only exception being the dot-com boom | | | | that spiked dramatically during the dot-com boom |
| years. However, when bonuses, merit increases, | | | | years. It is our opinion, that agency billing rates are |
| promotion increases, health benefits, pension plans and | | | | beginning to slowly creep upward. However, this time, |
| the like, are factored into the overall compensation | | | | the increases are gradual. |
| numbers, corporate communications professionals | | | | In all three main categories - Ad Agency Owned, Top |
| have consistently out-paced their PR firm counterparts. | | | | 100 Independents and Other Independents - hourly |
| This fact has been noted for each of the past 11 | | | | fees rose ever so modestly. |
| years that The Official PR Salary & Bonus | | | | Notable increases by title and size of agency - |
| Report has been published. | | | | Ad Agency Owned: +2.9% (previously +10.7%) - AAE |
| A look at the four major regions of the country - | | | | Acct Assoc +6.4%, AE/Acct Mgr +5.0%, SAS/Group |
| northeast, southeast, mid-west and west, (excluding | | | | Mgr +3.9%, Media Mgr +3.4%. |
| the 8 key metro cities), reveals that corporate | | | | Top 100 Independents: +2.2% (previously +6.6%) - Sr |
| communications average salaries are up a modest | | | | Media Mgr +5.7%, Media Mgr +4.7%, AE/Acct Mgr |
| 2.7% while PR agency average salaries slid -3.4%. | | | | +3.2%, AAE/Acct Assoc +2.7%. |
| Last year, corporate and agency professionals in | | | | Other Independents: +1.9% (+2.6%) - AAE/Acct Assoc |
| these regions reached a combined average increase | | | | +8.2%, Media Mgr +7.9%, Senior Media Mgr +2.8%. |
| of 8.2%. | | | | 2006 could be summed up as follows: |
| "Even though the PR industry experienced reasonable | | | | 1. The PR business grew both in revenue and new |
| growth in terms of revenue and hiring in 2006" said | | | | hires. However, most professionals we spoke to during |
| Dennis Spring, president of Spring Associates, Inc, | | | | the year reported that they were working excessive |
| "overall wage growth in public relations seemed to lag | | | | hours and feeling overworked and underpaid. |
| slightly behind. My feeling is that a certain amount of | | | | 2. In spite of employee grumblings, many people |
| caution permeated clients' hiring decisions because of | | | | stayed in their job waiting to see how the year would |
| various unpredictable world events and a fresh | | | | unfold. |
| memory of the negative affects of the dot-com | | | | 3. We predict that in 2007 there will be a surge of PR |
| implosion on the entire PR business". | | | | professionals who waited it out during the year and will |
| Bonuses | | | | explore greener pastures. |
| Last year (2006), our Salary Report press release | | | | 4. Our clients have already started to notice that some |
| stated - "From 2002 to 2004, we found that PR | | | | of their best employees are not happy with their wage |
| agency bonuses were either down, skimpy or | | | | and working situation and are trying to prevent attrition |
| non-existent compared with the corporate sector that | | | | by adding more wage incentives and adding more |
| consistently showed some gains every year. We're | | | | staff to handle the increased work-load. |
| happy to report that last year's bonuses (2005), on | | | | 5. As a result, we have seen a sudden movement of |
| both the corporate and agency sides, finally showed a | | | | both new hires and itchy employees looking for new |
| sharp upturn from the previous three years - at all | | | | opportunities. |
| levels". | | | | In short, we are already seeing the beginnings of the |
| The latest 2007 edition of The Salary Report | | | | hiring surge that we believe will characterize the rest |
| continues to show an upward trend from the year | | | | of 2007. Tune in next year. |