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  • 8/14/2019 Though the Job Market for PR Pros

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    2010

    Though the job market for PR pros shows some improvement,employers and job seekers are still proceeding with caution

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    Though the PR industry is still reeling from the grimrealities of 2009, the recovering economy is steadily

    albeit slowly creating new opportunities for PR practi-tioners willing to accept the industrys new normal.Todays job market offers fewer positions with fiercer

    competition, tempered salaries, and is kindest to thosesteeped in digital know-how. But as the economy limpstoward recovery, many expect more robust hiring and foragencies to clamor to retain talent who felt overworkedand underappreciated last year.The 2010 PRWeek/Bloom, Gross & Associates (BGA)

    Salary Survey polled 1,007 PR professionals across variouswork settings and disciplines. Of the respondents, 46%work for a PR agency; 25% work for a corporation;8% work for nonprofits; 4% are self-employed/freelancers;4% work in education; 3% work in government; and 2%work for a trade association.

    The survey findings show modest improvement of a bat-tered economy. While only 13% of respondents changed

    jobs in the past 12 months (compared with 21% in 2009),35% of this group had been laid off, compared with 23%reporting being laid off in 2009. Yet optimism abounds, asonly 14% consider their jobs to be under threat because ofthe economy, down considerably from 22% in 2009.

    There is more solid confidence in the economy, says

    Karen Bloom, principal at BGA. People are feeling lesspanicked and thats good. Because people are feeling moreconfident, well see more movement in the marketplace.

    But for those on the market, last year tested their patienceand professional networks. Catherine Topping, an SAE atLandis Communications, was laid off from CarmichaelLynch Spong (CLS) in February 2009.

    This summer was slow, so I joined a networking groupand that led to several informational interviews, she recalls.By fall, these turned into real job interviews.This focused networking ultimately led Topping to her

    current position. But she says without being keyed intonew opportunities this way, her job search would have

    been more daunting.

    The new

    30/prweekus.com/March 2010

    As the industry fights back from a toughyear, it is adjusting to a difficult, butimproving, job market, according to the

    2010 PRWeek/Bloom, Gross & AssociatesSalary Survey. Aarti Shah reports

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    Doug Spong, a principal at CLS, says 2009 was theagencys first down year in its 20-year history, resultingin layoffs at all experience levels. He says business hasrebounded, but the industry isnt in the clear yet.

    Ive been through at least three fairly steep recessionsin my career and I think this one was different, Spongsays. I dont see this one running back. Client spendingis crawling back on its hands and knees.

    Salaries resetPR professionals have also lowered their salary expecta-

    tions. Only 18% describe themselves as very aggressivein negotiating salary, compared with 23% in 2009.

    People dont always feel very strong negotiating forsalary the longer a recession goes on, says Bloom. Thereality of the situation settles in and people become alittle more complacent.

    But this hasnt tempered ambition, as 70% say theywant to attain a high professional rank over the courseof their career.

    53%say their salaryis equal to or lessthan it was a yearago, well up fromthe 27% whosaid so in 2009

    SALARY CHANGES

    What is the difference between this years salaryand last years salary?

    0

    10

    20

    30

    40

    50

    60

    Base: 1,007

    WORK PRESSURE

    To what extent do you agree with the statement, I feel undermore pressure to perform at work than I did 12 months ago?

    0

    10

    20

    30

    40

    Base: 1,007

    Number of peopletaking the survey1,007

    Gender33% male; 67% female

    Work setting46% work for a PR agency;25% in a corporate PR

    department; 8% for anonprofit; 4% in education;4% self-employed/freelance;3% government; 2% tradeassociation

    AgeThe median age ofrespondents was 37, withthe largest percentageof respondents in the26-30 bracket

    Ethnicity84% white/Caucasian;5% black; 5% Asian;4% Hispanic; 2% other

    EducationIn undergraduate degrees,PR (34%); journalism (18%);and liberal arts (12%) were themost popular majors. Of the

    respondents, 30% have mas-ters degrees, 11% of whichare in PR or communications

    ExperienceRespondents have an averageof 11.3 years of experience

    Work-life balanceRespondents work an averageof 49.1 hours per week andget 17.3 days vacation per year

    Salaries have not come back, says Jim Delulio, presidentof PR Talent. They are not going to rebound as quickly.In some cases, theyre going to be down 10%.The median salary overall for respondents was $82,000, a

    slight decrease from last years median salary of $86,000.Among those surveyed, 53% say their salaries are equal

    to or less than they were a year ago, a staggering jump fromthe 27% who said so in 2009. Still, 27% expect no raise intheir next review, while more than 30% expect the bump tobe less than 4%. In 2008, only 9% didnt expect a raise.

    Theres been a fundamental reset in salaries and Im not

    sure when thats going to return to pre-crisis levels, says asenior-level communications professional at a Fortune10company who asked not to be named.This was, in part, fueled by pay cuts and deferred raises

    that became standard last year. Michael Kempner, CEOof MWW Group, says that while his agency was morejudicious with raises, they didnt stop altogether.

    You should not be penalized for being loyal, he says.You shouldnt have to leave to get a raise.

    Zeroor less

    $1 to$4,000

    $4,001to $8,000

    $8,001 to$12,000

    $12,001 to$19,999

    More than$20,000

    (7)Stronglyagree

    (6) (5) (4) (3) (2) (1)Do notagree

    The respondents

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    Helen Vollmer, founder of Houston-based Vollmer PR,says last year her firm implemented a 10% pay cut for 60days that included all staffers making more than $50,000.

    We didnt want to do layoffs and people understood thatthey just needed to hang in there for a few months, sherecalls. We reinstated regular pay as soon as we could.

    CLS Spong deferred merit salary increases, but not pro-motions. If people deserved promotions, they got their

    increases, he says. You dont want your staff to think theonly way they can get a raise is by leaving.Many agencies have reinstated merit increases and

    promotions this year, but bonus pay is still conservative particularly for senior staff.

    Base salaries are holding steady, but people are takinga hit for total cash compensation, says Asheley GallowayLinnenbach, a partner in Korn/Ferrys corporate affairspractice. The majority didnt get a bonus last year andthat can be significant.

    Adjusted expectationsMatthew Harrington, US president and CEO of Edelman,says the agency is actively hiring for more than 90 open

    positions in the US. While candidates are more measured intheir salary expectations, he says the firm is being cautiousof those not expecting any compensation bump.

    People are not expecting a huge leap forward, henotes. But we tend not to have lateral moves because wewant to have a motivated workforce.

    Ryan Donovan, senior director of corporate communi-cations at SanDisk, says salary expectations have comeback to Earth.

    I dont think people are willing to do lateral moves, hesuggests. But they are not as aggressive on salaries.Yet Aedhmar Hynes, CEO at Text100, says her agency

    began hiring again last fall after late 2008 layoffs. So far, she

    adds, job candidates havent scaled back salary requests.Even the most entry-level candidates are comfortableand confident asking for more money, Hynes says. Thereisnt the desperation we saw during the dot-com recoverywhere employers could really drive the salaries offered.

    Most hiring managers dont want to bring candidates onboard who will be taking hefty pay cuts. This hurts thosewhose salaries had soared much higher than market aver-ages during better days.

    Theres a limit to how far down youre willing to go belowsomeones previous salary because once the upturn comes,theyll be looking again, BGAs Bloom explains. Thosewho jumped a lot during the boom, when people werethrowing money at candidates, may have inflated their sala-

    ries, but hurt their long-term employment prospects.Many job seekers are aware salaries are scaled back, so

    they are instead looking for other perks like flex time andeven job security.

    In fact, 61% of respondents said they would be willingto take a pay cut or salary freeze to ensure job security forthe next year, compared to 63% in 2009.

    In salaries, were not looking at what the market will bear,says MWWs Kempner. Were looking at the candidateand what kind of budget we have. But more candidates arelooking for stability and positive growth opportunities.

    Susan Butenhoff, CEO of Access Communications, saysincreasingly job candidates want to know if theyll have a

    more manageable workload if they change employers.

    61%would be willingto take a pay cutor salary freezeto ensure theirjob security forthe next year

    WILLINGNESS TO RELOCATE

    Compared to last year, how would you describe yourwillingness to relocate for a job opportunity?

    Base: 1,007

    Same level of willingness

    Less willing

    Much less willingMuch more willing

    More willing

    SALARY BY EXPERIENCE

    Median salary by years of experience

    0

    40

    80

    120

    160

    200

    SALARY BY GENDER AND EXPERIENCE

    Median salary by gender and years of experience

    0

    50

    100

    150 Male

    Female

    SALARY BY JOB TITLE

    Median salary by job title

    0

    50

    100

    150

    200

    250

    Chair./CEOBase: 80

    Director/MD/PartnerBase: 77

    EVPBase: 22

    SVPBase: 56

    VPBase: 103

    PR/commsdirectorBase: 139

    PR/commsmgr.Base: 143

    Acct.spvsr.Base: 39

    Acct.mgr.Base: 23

    SAEBase: 53

    AE/PRofficerBase: 76

    Acct.coord.Base: 37

    Freelance/soloBase: 28

    Male >5 yearsBase: 287

    Female >5 yearsBase: 443

    Male

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    They want to know how many accounts and the sizeof those accounts, she explains. They want a breakfrom the fast-food style account service of 2009. Peoplewere working on an incredible number of accounts just tomeet revenue and billing requirements.

    More rigorous hiringOf respondents, 43% were very willing or willing to

    relocate for a job opportunity. In addition, 26% ofrespondents reported that they were more willing thanlast year to make a move, virtually the same percentageas 2009s findings.

    But for people who are already employed, says thesource at the Fortune10 company, its really hard toget them to move cross country. 43%

    of respondents saythey are willingor very willing torelocate for a jobopportunity

    The source is hiring at the director level, but says therecession hasnt made locating talent any easier.

    Id say about half the resums Ive seen are from peoplewho have been laid off and half are employed, says thesource. There are a lot of good people out of work, butIm still having a hard time finding great people.

    Even for candidates willing to relocate, hiring managersare scrutinizing motives more and looking for long-term fits.

    Christine Barney, CEO at rbb PR, says her Miami-basedagency recently hired a new employee from New York.We prefer it when someone isnt moving for the job

    alone, she explains. It helps if someone understandsthe market and the lifestyle here. Theyre just more likelyto be successful.Taking a closer look at candidates has become a stan-

    dard hiring practice, especially when a single job openingresults in a flood of candidates, many of whom seem tobe equally qualified on paper.

    The process of hiring has changed, says Tim Dyson,CEO at Next Fifteen. It has become tougher and morerigorous. People were much morecasual and used to hire people if they

    liked them. But now they are drillingmuch deeper to make sure they havethe right skills.

    Layoff stigmaFor those grappling with a layoff,the hiring process is even tougher.Although most recognize even tal-ented and motivated PR pros be-came victims of the dire economy,some bias still exists against thoselet go at the senior level.

    In some cases, there was good

    reason, says Dyson. The produc-tivity and utilization of senior-levelpeople does come under scrutiny

    JOB MOVEMENT

    Have you changed employersin the past 12 months?

    Were you laid off fromyour previous position?

    Base: 135Base: 1,007

    No

    Yes

    No

    Yes

    JOB SECURITY

    Are you willing to take a pay cut or salary freeze to ensurejob security for the next year?

    Base: 1,007

    No

    Yes

    JOB SEEKING

    Are you currently job seeking?

    Base: 1,007

    Yes, not in PR

    No

    Yes, in PR

    SALARY BY WORK SETTING

    Median salary by work setting ($ thousands)

    0

    20

    40

    60

    80

    100

    120

    BECAUSE PEOPLE ARE FEELINGMORE CONFIDENT, WELL SEE MOREMOVEMENT IN THE MARKETPLACE

    Karen Bloom, Bloom, Gross & Associates

    PR agencyBase: 461

    CorporateBase: 248

    Govt.Base: 29

    NonprofitBase: 84

    Tradeassoc.Base: 22

    Self empl./freelanceBase: 44

    EducationBase: 39

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    Demand for mid-level experience personnel reacheda crescendo following the dot-com recession.

    We arent seeing any dearth of mid-level talent andare fully staffed at the [account manager] level, saysText 100s Hynes.

    She adds that her agency doesnt anticipate talent willbe as tight as it was during the previous recession, mainlybecause fewer people were entering PR then.

    In fact, senior-level staffing seems to be taking priorityat some agencies. Several are either planning to or recentlymade senior additions, including Porter Novelli, MWW,Text 100, and CLS.

    BGAs Bloom says that shes seeing a lot of newlycreated positions for mid- to senior-level practitioners,but there is some concern about skills.

    As with most recessions, were seeing skill gaps becausepeople were not getting hired or trained during the reces-sion, she notes. I think initially this gap is at the juniorlevel, but eventually well find it move up the hierarchy.

    New realityWhile the industry can expect the relentless pace of the past

    18 months to slow as budgets increase, new staffing modelsmight not alleviate pressure as much as people expect.

    The workload wont be as intense as it was for thepast 18 months, but it wont be as easy as it used to be,MWWs Kempner predicts. Many of us were bloatedin our operations.

    Pressure to perform also intensified last year. Accordingto the survey, 47% agree that they feel more pressure toperform than they did 12 months ago.

    OUTSIDE OPPORTUNITIES

    Are you considering non-PR work settings dueto the economy?

    0

    20

    40

    60

    80

    100 2010

    2009

    HEADHUNTERS

    Have you been approached by a headhunter in thepast 12 months?

    0

    20

    40

    60

    80

    100 2010

    2009

    FINANCIAL MOTIVATION

    What is the minimum pay raise that would make you leave your current job?

    0

    10

    20

    30

    Base: 1,007

    Lessthan5%

    10% 15% 20% 25% 30% 35% 40% 45% 50% Morethan50%

    I wouldnot leave

    when budgets are tight. If they arent highly utilized, theycost agencies the most.

    PR Talents Delulio agrees that senior-level PR proswere hit hard in 2009 and many have found it tough to re-enterthe game. While many executive search firms are seeingdemand spike, the fight is often for employed senior talent.

    Weve seen a certain resistance to candidates whoare not gainfully employed, explains Bill Heyman, presi-

    dent/CEO of Heyman Associates. If a client hires anexecutive search firm and they repaying a search fee, they arentlooking for someone who doesnthave a job.

    But Korn/Ferrys Linnenbach, saysshe sees this bias receding as clientsrealize the number of great [unem-ployed] candidates looking and thereality of the market.

    Because so many organizationsreconfigured their staffing modellast year, some predict there will be along-term shift in these levels. Next

    Fifteens Dyson says the recessionpushed firms to rethink basic agencyconventions, like the value of havingan abundance of mid-level stafferson the payroll.

    There has been a slightly changed business modeland agencies are wondering whether a slightly highernumber of senior-level and more junior-level staff ismore effective, Dyson says.

    SanDisks Donovan also restructured the companysPR team last year, eliminating several senior managerpositions and replacing them with two posts at the direc-tor level. The company is presently looking for junior-to mid-level staffers.

    I reshuffled at the senior level and decided to add atthe mid level, he reports.

    YOU SHOULD NOT BE PENALIZEDFOR BEING LOYAL. YOU SHOULDNTHAVE TO LEAVE TO GET A RAISE

    Michael Kempner, MWW Group

    YES NO YES NO

    YES NO YES NO

    Base: 1,007 Base: 1,160

    Base: 1,007 Base: 1,160

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    47%of respondentsfeel more pressureto perform at theirjob than they did12 months ago

    Gary Stockman, CEO of PN, points out that there havebeen additional pressures on the PR industry mainlyfrom procurement and increased competition from othermarketing agencies that transcend the economy.

    Everybodys working at capacity or beyond and weregoing to still be working hard in 2010, he says. Thereis a new competitive atmosphere now that has to do withmore than the economy.

    But Access Butenhoff warns against overworking staff,especially as more job opportunities emerge.Im finding junior-level staffers are looking for relief

    from what they had to put up with in 2009, she says.There was a lot of pressure on the junior level, not onlywith increased workload and hours, but increased expecta-tion on what they were expected to know how to do.

    But Butenhoff says the PR industry is likely to bounceback to more normal workloads because clients will ulti-mately demand it.

    This new normal is about profits and revenues not client service, she emphasizes. The successful andhealthy agencies will be focused on client services ratherthan making the next margin.

    SanDisks Donovan says hes heard similar frustrationamong job seekers.

    The workload has piled up and the expectations havegone through the roof, he notes.

    Exhausted moraleWhile job satisfaction remains positive, with 51% sayingthey find their work rewarding, agencies are preparing fortheir overwhelmed staffers to start entertaining new offers.Only 30% of respondents strongly agree that they findtheir jobs more rewarding than they did 12 months ago.

    As the market starts to open, youll see a flood ofpeople pursing new opportunities, Donovan says. It

    seems there are a lot of people who feel like theyve beenreally taken advantage of by their employers.CLS Spong says it will take time for the industry to

    recover from what it has seen.People are largely shell-shocked by what happened in

    the past 18 months, he suggests.Cynthia Rude, managing partner at Paine PR, says it is

    probably too late for agencies to reverse poor morale.The die has already been cast, she says. We de-

    cided retention was going to be important so wevebeen emphasizing mentoring and growth.

    Alleviating workload has been another priority. WhilePaine conducted layoffs last year, the agency is nowhiring and will have staff comparable to pre-recession

    numbers this year.Weve seen it here, says Rude. Employees are tired

    and working really hard.Were in a fortunate position of growth right now,

    she adds. So we are hiring. We had a strong Q3 and Q4and indications show 2010 will be good.This momentum, is positive for retention and employee

    morale, Rude notes, adding that the key is making surestaffers feel connected to the agencys entire business.

    In interviewing candidates, we see our share of peoplewho were at agencies that reorganized, she explains.But they are dissatisfied because even if they kepttheir job, they didnt feel like they were communicated to

    about the process.

    COMMITMENT TO PR

    To what extent do you agree with the statement,I am committed to a career in PR/communications?

    0

    10

    20

    30

    40

    Base: 1,007

    JOB REWARDS

    To what extent do you agree with the statement, I findmy job more rewarding than I did 12 months ago?

    0

    10

    20

    30

    40

    Base: 1,007

    Many firms have strengthenedretention efforts to bring moraleup, as well as to keep their topstaffers from being poached.Among them:

    EdelmanRevamped its educationalprogram so that more of itsstaff could take courses,seminars, and participatein continuing education.

    Text 100Instituted a new performancemanagement system in Augustthat is more focused on careerdevelopment; relaunched its

    in-house training program undera new name, Text Life, with astronger focus on global learn-ings that is open to all staff.

    MWW GroupPaid limited bonuses, putting

    more resources into promotionsand raises.

    Porter NovelliBrought back its chief talentofficer position to make suregood talent is recruited anddeveloped internally.

    Access CommunicationsIncreased bonuses for its staff.

    Boosting retention

    (7)Stronglyagree

    (6) (5) (4) (3) (2) (1)Do notagree

    (7)Stronglyagree

    (6) (5) (4) (3) (2) (1)Do notagree

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    66%of respondents

    are committedto PR despitethe tough workenvironment,up from 61%last year

    Lynne Doll, president of The Rogers Group, says heragency didnt curb raises or reduce salaries last year inorder to keep morale high.

    We are still looking closely at workload, she explains.Workloads are higher than in the past, but weremaking sure theyre still manageable.

    Moving upDespite a trying work environment, respondents com-mitment to PR was 66%, up from 61% last year. Thenumber of job seekers looking for work outside of PRdue to the economy dropped to 19% from 24% last year.

    But with mentoring scaled back in the past year, andpromotions often put on hold, agencies are making surethey are providing upward mobility to their employeesready for new responsibilities.

    Weve resumed salary increases and just promoted

    more than 17% of our [North American] staff, says Text100s Hynes. We continue to feel the pressure to balancesalary growth with a recovering market and are reviewingthis constantly to get it right.

    She adds that employers are increasingly providingcounter offers to retain their people.

    I anticipate interest in staff this year, says EdelmansHarrington. When people come knocking, I want ourpeople to know they have great opportunities here.

    Next Fifteens Dyson adds that clients often make moneyavailable to keep their star players working on their account.

    Are the career paths that were there in the good timesstill there? No, he says. But there will always be career

    opportunities for good people clients demand it.

    Yet the survey finds only 6% of respondents had asalary increase over their annual review to keep themfrom leaving, down from last year.

    Access Butenhoff, who increased headcount by 37% in2009, says the biggest threat for agency retention will befrom in-house opportunities, especially because so many

    organizations scaled back in 2009 and relied more heavilyon their agencies.

    Theres going to be a survivors mentality and a desirefor change, she notes. But this change isnt going to beanother agency, itll be in house, especially as the biggercompanies start to rebuild their PR departments.There has always been tension between agency and in-

    house posts, with the latter enjoying a perception advantagethat has intensified in the recession. Even more so, thereseems to be this belief that work is less stressful in houseand compensation is better, adds Butenhoff.

    Shaky optimism

    While few in the industry are definitively proclaimingthat the worst is over, most say new business pipelinesare substantially busier than they were early last year.

    When I talk to people, the first question is, Where doyou think this is all going? says PNs Stockman. I thinkpeople across the industry are asking that question on amacro-economic level.The mass layoffs in 2009 have also reconfigured peoples

    thinking about their jobs. The senior-level communicationspro at the Fortune10 company says, Job security doesntexist. Youre now judged by your immediate performance.The market also has forced nearly everyone to think more

    entrepreneurially, and in most cases, work hard for theiremployers while also being savvy about their own future.

    The economy is getting better, but its not there yet,MWWs Kempner says. And ultimately, the only personwho can fire you is you. If you work hard and produce,there are opportunities.

    The PRWeek/Bloom Gross & Associates Salary Survey was

    conducted by CA Walker. E-mail notification was sent to ap-proximately 24,592 PR pros and a survey link was postedto PRWeeks Web site and Facebook page and sent out through

    the PRWeek US Twitter feed.A total of 1,007 PR pros completed the survey online between

    November 30 to December 14, 2009. Results arent weightedand are statistically tested at a confidence level of 90%. Visit

    prweekus.com to purchase a Salary Survey Premium Edition.

    BENEFITS RECEIVED

    Benefits included in respondents salary package

    0

    20

    40

    60

    80

    100

    Base: 1,007

    VALUED BENEFITS

    Which benefits do you consider to be very important?

    0

    20

    40

    60

    80

    100

    Base: 1,007

    Med.plan

    Dentalplan

    401k Pers.Days

    Perf.relatedbonus

    Paidmater./pater.leave

    FlexTime

    Summ.Fridays

    Profitsharing

    Heathclubmemb.

    Shareoptions

    Comp.car

    Otherbonus

    Guar.bonus

    Med.plan

    401k Dentalplan

    Perf.relatedbonus

    Pers.Days

    FlexTime

    Paidmater./pater.leave

    Guar.bonus

    Profitsharing

    Shareoptions

    Summ.Fridays

    Heathclubmemb.

    Companycar

    JOB SATISFACTION

    To what extent do you agree with the statement,Overall, I find my job rewarding?

    0

    10

    20

    30

    40

    Base: 1,007

    (7)Stronglyagree

    (6) (5) (4) (3) (2) (1)Do notagree