SUMMARY AND CONCLUSIONS

PR salaries were up nearly 8% in 1999 - at least four times the US average, according to PRWeek's Salary Survey. And additional growth in 2000 is expected to bring the increase to more than 15% over two years. Driving the growth is intense competition for talent among PR agencies. Salaries at medium- and large-size firms rose by more than 12%, while PR pay was up 6.9% at corporations. By comparison, Advertising Age has reported that salaries rose only 6.6% at ad agencies.

As a result of the competition for talent, take-home pay at medium and large firms is now neck-and-neck with or higher than what corporations offer.

Employees at agencies with 100 to 1,000 staffers earn $71,194, compared with $63,667 at similarly sized corporations. The PRWeek Salary Survey also revealed that in the senior-most PR positions, executive salaries are now higher than those of their Madison Avenue counterparts. Ad agency CEOs earn an average of $163,100, while corporate SVPs bring in $172,808. An EVP at a large PR agency, however, earns substantially more: $205,905.

Less surprising is the fact that women still earn less than men. Despite outnumbering men by nearly two to one within the profession, women earn 38% less.

Hi-tech PR salaries are growing the fastest - up more than 10% - but the survey revealed that the sector's average paycheck ($69,957) lags behind financial services ($78,939), utilities ($74,507), retail ($73,730), industrial/ manufacturing ($73,537) and professional services ($72,296).

Though the PR business is going through an extraordinarily prosperous time, the PRWeek Salary Survey 2000 shows that salaries rose, on average, by 7.9% in 1999, with a further hike of 7.3% expected this year. These numbers are far higher than the 1.5% average reported by the National Bureau of Labor Statistics. And they're higher than the 6.6% reported by the advertising industry (source: Advertising Age).

Unrealistic Expectations Due to Rapid Industry Growth

The creation of unrealistic expectations is a concern that is borne out by the survey. Asked what percentage pay raise they would require to quit their job for another, the average pro is expecting over 20%.

PR pros are now moving companies, on average, once every three years. Nearly 50% of respondents have been with their current employer for less than two years, and a typical respondent had been working there for 3.4 years. In some sectors, like hi-tech and consumer PR, the average length of stay is lower still, at just over two years.

According to a Pricewaterhouse-Coopers survey published in November, the number of people who think it acceptable to move jobs every two or three years is higher in PR (37%) than any other sector, the average being 21%.

According to a survey by Crandall Associates, an account executive at a direct marketing advertising agency with two years' experience makes $33,000. An A/E in PR will make $38,000. Account execs in ad agencies still earn more ($45,600), but at the top end, the value of PR pros is truly being felt. A CEO at an ad agency will take home $163,100 (source: Advertising Age). An SVP at a corporation will bring in $172,808. An EVP at a large PR agency earns even more - $205,905.

Agency Salaries Spiral

Although agency salaries still lag behind corporate ones, the difference between the two is narrowing rapidly as competition for talented staff continues to increase.

At first glance, corporation salaries ($76,421) are about 9.4% ahead of PR agencies ($69,833), with PR positions in government/politics ($56,415) lagging behind, along with non-profits ($54,047), and education professors ($49,835).

But closer analysis reveals that particularly among the medium-to-large-size PR agencies, salaries are now neck and neck with - or ahead of - salaries in corporations. Individuals working at agencies with 100 to 1,000 employees earn $71,194 compared with $63,667 at a similar size corporation. And in agencies with 1,000-plus employees, the agency pro ($86,522) again earns more than the corporation pro ($84,198). It's only because there are such a large number (66%) of agency pros working at smaller agencies (with fewer than 100 employees) that the statistics get skewed.

Agency salaries rose by 10.2%. In corporations, salaries rose by 6.9%. At medium and large-size agencies, the salary hikes were even greater, rising by more than 12%; whereas in corporations with 1,000-plus employees, salaries rose just 6.6%. As further evidence of the pressure on agencies, 15% of agency pros enjoyed a salary increase over and above their annual review specifically to stop them from leaving. Across the industry as a whole this figure was 12% to 13%.

And agency salary inflation is expected to continue. Agency pros expect an 8.5% increase in salary next year. In corporations, the expected increase is 5.8%.

It's a far world from the picture in government/politics and non-profit, where salaries and increases are more prosaic. But increases in all PR sectors were at least a couple of times the national average of 1.5%.

Benefits of Freelancing

More surprising was the fact that self-employed individuals are among the best paid in the PR business, with an annual take of $85,644. This may be because of the rising importance of the Internet and virtual companies.

The PRWeek Salary Survey also reveals that the self-employed are among the most contented of all people in their jobs. The majority reported that they had left agency life in order to go solo. Perhaps we can conclude that they are enjoying a break from the pressures of agency life.

Size of Firm

The corporate PR market is famed for its high salaries, but a growing distinction can be seen between small and larger corporations. The salary ($54,300) and benefits in companies of fewer than 100 people perhaps confirms opinions held in some circles that small businesses don't value PR very much, or simply can't afford it. In companies of 101 to 1,000 employees, PR salaries rise appreciably ($63,667), and rise more steeply still in companies with 1,000-plus employees, to $84,198.

But larger corporations are not having it all their way. The smallest companies (8.1%) offered bigger salary increases than the largest ones (6.7%), which suggests that smaller companies are working hard to keep a hold of staff.

Smaller companies struggle to compete on benefits and other bonuses. Only 68% of smaller companies offer 401K plans, while 83% of 1,000-plus firms do. And smaller companies offer bonuses of 3.5%; while those with more than 1,000 employees averaged 6.5%.

Hi-tech Hype

Though the hi-tech sector may be drawing a huge amount of attention, and talent is scarce, it is still by no means the best-paid sector (see table 8), with an average salary of $69,957. The best field to be in when it comes to PR salaries is financial services ($78,939). Next come utilities ($74,507), retail ($73,730), industrial/manufacturing ($73,537), food and beverage ($73,013) and professional services ($72,296) - all ahead of hi-tech.

That said, hi-tech PR pros are among the youngest in our survey. A typical hi-tech pro is 32 (the overall average is 36.4), and has worked 7.3 years in PR (the average is 9.7). Hi-tech pros are also likely to have been in their current position for just 2.2 years (average 3.4), and with their current employer for just 2.7 years (average 4.5).

All this helps to explain why salaries are rising at an above-average rate of 10.7% (vs. 7.6%) in hi-tech, and why hi-tech PR pros expect above-average increases (8.9%) in their next pay packet. It also provides much-needed context for the focus on this sector.

Other Surprises

The healthcare/ pharmaceuticals ($66,916) and telecommunications ($68,204) sectors don't figure quite as high in the stakes as their attention suggests.

Less surprising is the fact that the lowest paid sectors are education specialists ($49,835) and PR pros in the non-profit ($51,534) and sports PR ($53,724) arenas, where job satisfaction is higher and pay is appreciably lower.

What Do You Practice?

Skills count in the PR business for some specialties. The specialist field of crisis management ($90,110) is the best- paid practice area. "If you've managed a crisis we know you can make more money so long as you didn't start the crisis," says one executive recruiter. It's not just because of the discipline, of course.

At 41.3, crisis pros are typically the oldest, the most loyal (average tenure is 6.5 years with their current employer) and the most steady (they've been in crisis communications for an average of five years). That said, crisis communications experts are among the most likely (45%) to leave their job in the next 12 months.

Pros who delve into the corporate, M&A and investor relations market are similarly well paid, at $88,051, but are enjoying a more exciting period of remuneration on the back of the Wall Street explosion. Salary increases in this field were the highest at 9.3% on average. Salary bonuses (8.4%) and future salary expectations (7.3%) are also the highest. And PR pros in this field are the most sought after (74%) by headhunters.

Also highly valued are pros in public affairs/government relations ($82,207) and marketing communications ($82,300). The commodity skills of media relations ($62,275), internal communications ($60,401) and community relations ($54,747) are least valued.

NYC, DC, LA

Not surprisingly, the capital of PR, New York City, offers the top PR salaries, at $84,566. But salaries are not actually going up as fast in New York as the executive recruiters will have you believe, up a fraction over the norm at 8.5%. The specialist skills demanded in Washington, DC, on the other hand, have seen an explosion of 18.4% in salary raises. This is also the second-highest- paid market in the country for PR pros, at $82,547.

The West Coast also is a focus of highly-paid talent. Pros in Los Angeles/Orange County earn $78,707 on average, while salaries in San Francisco/San Jose aren't far behind, at $76, 842. But again, salaries on the West Coast generally are not as high as the rumors suggest. In LA/Orange County, salaries rose by 7.8%. In San Francisco/San Jose, they were up slightly above the norm at 8.5%. And proving that it isn't just the West and the East that's enjoying the most dramatic growth in salaries, Atlanta salaries are rising at 10.8%.

Gender

PR is one of the few industries in which women have been able to achieve fame and even some fortune. Renowned for their superior communication skills and tact, they account for an overwhelming majority (65%) of the personnel in the industry. Yet women's salaries are as low in PR as they are in business as a whole, with the average female salary almost 40% less than what the average male takes home.

Men take in an average of $81,920 vs. $59,026 for women - a $22,894 difference. Current salary trends will widen rather than narrow the difference, since male salaries increased by 8.3% and female by just 7.6%. This disparity can be partly be explained by age and experience. The average male in the PR industry is 39.9 years old whereas women are typically more than five years younger. Also men have been in PR for 11.8 years, women 8.5.

Another factor is the choice of job: in what have always been traditionally the best-paid jobs (i.e., in corporations) men outnumber women by 30% to 26%; in the least well-paid area (non-profit), women outnumber men by 20% to 14%.

Men also tend to work in the best-paid sectors (financial services, industrial/manufacturing) and practices (crisis communications, corporate/ M&A/investor relations, public affairs), while more women work in lower-paid jobs in community relations and internal communications.

But these factors explain only so much. Even with direct comparisons, using specific job titles in specific positions, the numbers show a distinct discrimination. A male VP at an agency earns $97,928; his female counterpart gets $84,087. Even in more junior positions (where considerations of skill and experience are less important) there is a bias. An account manager/PR manager at a corporation earns either $68,530 or $56,819, depending on sex.

And an account executive at an agency picks up $40,799 vs. $36,665. In many ways, the numbers simply reflect a reality of the American economy: women tend to get a raw deal. It's surprising, then, to note that the numbers don't seem to be having a huge impact on morale. About 45% of men and 48% of women report that they are dissatisfied with their career opportunities. And while 42% of women are likely to change jobs (vs. 35% for men), that's partly a reflection of age and seniority. The fact is that younger people are more likely to change jobs.

Ethnicity

There's also a marked discrimination between ethnic groups, but it's not so much in terms of salaries as representation. Asian, Hispanic and to a lesser extent African-American pros are younger than the average white PR pro, and so we can expect salaries to be lower, as they are. And these communities are enjoying above-average rises in salary. But at 91%, the industry remains almost religiously white. So much for multicultural PR.

Satisfaction Guaranteed

One thing that rising salaries can't appear to guarantee is job satisfaction. While a higher-than-average number of corporate and agency pros concede that they are very well rewarded or well rewarded (43% and 42% respectively), a lower-than-average number of corporate and agency pros (57% and 54%) appear to find their job rewarding.

Incidentally, as well as remuneration, a clear correlation can be made: those who feel that the company training program is adequate are more likely to be satisfied, to feel they have good career opportunities, and to remain loyal to the company.

The Dark Side

In a market where talent is scarce, it is inevitable that job-hopping will continue. But strong as it apparently is, it appears that at least part of the job-hopping phenomenon can be explained by the darker side of the American boom. According to the PRWeek survey, 6.3% of PR pros left their previous job due to downsizing.

So while salaries are up, stability is down. Overall, 11% of respondents are concerned that their job is under threat. And the fear is most marked in corporations (23%) and non-profits (12%).

But while job insecurity is a concern among corporate pros, the laws of supply and demand are still very much in favor of the employee. Executive recruiters are out in force, with 59% of PR pros reporting that they have been approached by a headhunter in the past 12 months. And it appears that as well as agency pros (69%), corporate pros (68%) are right in the center of the radar screen, with those in government/politics (30%) and non-profits (42%) somewhat off picture.

What's more, for those who have been singled out for attention, it appears that the number of approaches is increasing: 50% said they had more approaches in 1999 than 1998; 42% had the same; and only 8% said they'd had fewer. It's clear that if you're half decent, you shouldn't have much trouble finding a new job.

PR is enjoying a new-found validity in the business market, and salaries are clearly rising to reflect its new prominent position. The only question on the horizon is what happens when the economy falters.