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<strong>Salary</strong><strong>Survey</strong><strong>2005</strong>forPDF 2/15/05 7:01 PM Page 1<br />

SALARY<br />

SURVEY<br />

<strong>2005</strong><br />

Last year’s survey showed in black and white the effect of years<br />

of economic downturn.Salaries were down,there was a mid-level<br />

talent crunch and half of the PR industry was looking for a new job.<br />

But for some time now, the winds of change have been blowing,<br />

and the outlook for jobs, talent, and compensation is far brighter.


<strong>Salary</strong><strong>Survey</strong><strong>2005</strong>forPDF 2/15/05 7:01 PM Page 2<br />

SALARY SURVEY <strong>2005</strong><br />

Heading in the<br />

Salaries are up, the raise has returned,<br />

and recruiters are scouring résumés and<br />

companies for top talent. The job market<br />

is undoubtedly back. By Anita Chabria<br />

PR salaries are once again on the upswing as the<br />

strengthening economy continues to generate<br />

new business and organic growth for agencies<br />

and corporations alike.This year, the average<br />

salary of respondents in the PRWeek-Korn/<br />

Ferry International <strong>Salary</strong> <strong>Survey</strong> was $87,461,<br />

which represents a 7.19% rise over the $81,594<br />

they say they received last year.<br />

“Salaries have definitely risen in the past<br />

year,” says Nels Olson, practice leader of external<br />

affairs at Korn/Ferry. “Companies are<br />

spending more on their communications<br />

functions.”<br />

“This is the strongest economy on the agency<br />

side that I’ve personally seen since the first<br />

quarter of 2001,” agrees Donna Renella,VP of<br />

talent at Weber Shandwick and chair of the<br />

Council of PR Firms’ HR Roundtable.“For the<br />

first time in three years, salaries are becoming<br />

unstuck.I’m not going to say that the floodgates<br />

have opened, but what I will say is that people<br />

are able to be compensated for their increased<br />

contribution on a merit basis, as well as a promotion<br />

basis.”<br />

More than a quarter of respondents (26.4%)<br />

in this year’s survey say they are making<br />

between $50,000 and $74,999; 19.4% bring in<br />

between $75,000 and $99,000;and 26.4% report<br />

making above that amount (that’s up from<br />

23% who reported paychecks of that size for<br />

the prior year.) On the lower end of the pay<br />

scale, 9.9% are getting by on under $35,000,<br />

while 16.4% say they make between $35,000<br />

and $49,999.<br />

Hiring market heats up<br />

This good news about salaries also points to<br />

other bright indicators for PR,most notably one<br />

of the hottest hiring markets in recent years.<br />

Across the country and at all levels, recruiters<br />

are scouring résumés and raiding competitors<br />

to find talent at a rate that some are comparing<br />

to the dot-com days.<br />

“The top thing I take away from this is that<br />

the job market is back,”says Don Spetner,chief<br />

marketing officer of Korn/Ferry.“It’s a reflection<br />

of the end of cost-cutting and the stretching<br />

to the limits of productivity.It’s as if we’re emerging<br />

from the darkness and spring is here.”<br />

Those on the front lines of hiring PR talent<br />

say the bump in salaries, though still modest,<br />

may be the first warning of an impending shortage<br />

of good people as agencies and corporations<br />

continue to expand to meet new demands.<br />

Increasing salaries are a sign not just of a resurgence<br />

of business,they say,but also the resulting<br />

talent crunch many companies are suddenly<br />

facing after years of working with a minimal<br />

staff.As the hiring heats up, for the first time in<br />

recent memory,signs seem to be pointing to an<br />

atmosphere that favors employees.<br />

“There is competition out there now,” says<br />

Hill & Knowlton’s chief talent officer Ellen<br />

Shedlarz.“The past two years were clearly an<br />

employer’s market.It’s much more competitive<br />

this year. Everybody is sort of back in the<br />

spirit of hiring.”<br />

Sabrina Horn, head of technology PR firm<br />

The Horn <strong>Group</strong>, agrees. “There didn’t seem<br />

like there was a nice ramp up,” she says. “It<br />

went from being,‘I don’t want to hire anybody’<br />

to a hiring frenzy.”<br />

This year, 1,864 professionals, who have an<br />

average of 11.9 years in the business under their<br />

belts, responded to the survey. More than a<br />

third (36.9%) work in agencies.Another 24%<br />

are in corporate settings,while 12.8% are in the<br />

nonprofit sector.Slightly fewer (7.3%) are selfemployed.A<br />

small number of respondents also<br />

report working at IR agencies, government<br />

offices, trade associations, and other settings.<br />

The respondents also represent a range of<br />

professional levels, with 10.1% holding chairman<br />

or president titles, and 14.9% stating their<br />

position as directors or managers. About the<br />

same number (14.6%) fall into VP role,including<br />

EVP and SVP. PR managers make up one<br />

fifth (20.9%) of respondents, and another fifth<br />

(20.4%) come from the ranks of account supervisors,<br />

account managers, SAEs, and AEs. But<br />

no matter what title each respondent holds,they<br />

collectively prove to be a hard-working bunch,<br />

clocking an average of 48.1 hours in the office<br />

each week.<br />

Despite all that hard work, when it comes to<br />

gender, women are still far behind their male<br />

colleagues in terms of pay.The average man in<br />

the survey is breaking six figures with a salary<br />

of $107,960, while his female coworker toils<br />

away for an average of $75,498.<br />

Julie Biber,VP and director of recruitment at<br />

Edelman,is surprised by this.“When I talked to<br />

male candidates,”she says,“I’m not seeing them<br />

34.3%<br />

feel they’re wellcompensated<br />

in their current<br />

positions<br />

Compensation<br />

How well compensated do you feel?<br />

Base: 1864<br />

Undercompensated<br />

22.5%<br />

Well compensated<br />

34.3%<br />

Extremely well<br />

compensated<br />

9.3%<br />

Adequately<br />

compensated<br />

33.9%<br />

Job seeking?<br />

Yes, but not in PR—5.8%<br />

Job change<br />

Next increase Change incentive<br />

FEBRUARY 21, <strong>2005</strong> • www.prweek.com 16<br />

Subscriptions: 800-558-1708 • PRWEEK<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

Yes, in PR<br />

29.8%<br />

11.8%<br />

None<br />

4.6%<br />

Under 2%<br />

27%<br />

2 to 3.9%<br />

21.1%<br />

4 to 5.9%<br />

9.2%<br />

6 to 9.9%<br />

8.2%<br />

10 to 14.9%<br />

No<br />

64.4%<br />

Base: 1864 Base: 1864<br />

What percentage raise do you expect at your<br />

next pay review?<br />

1.3%<br />

15 to 19.9%<br />

Base: 1864 Base: 1864<br />

1.4%<br />

20 to 24.9%<br />

0.4%<br />

25 to 29.9%<br />

<strong>Salary</strong> by gender<br />

US $ in thousands<br />

US $ in thousands<br />

100<br />

80<br />

60<br />

40<br />

20<br />

0<br />

120<br />

90<br />

60<br />

30<br />

0<br />

$37,678<br />

$87,461<br />

$35,331<br />

$56,558<br />

$54,587<br />

$107,960<br />

$86,295<br />

$72,035<br />

1.0%<br />

30%+<br />

$75,498<br />

Total Men Women<br />

Base: 1864 Base: 1864<br />

<strong>Salary</strong> by age group<br />

Base: 1864<br />

$108,780<br />

$90,533<br />

14.1%<br />

Don’t know<br />

$135,578<br />

$122.387<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

10%<br />

5% or less<br />

No<br />

41.7%<br />

Don’t know<br />

27.4%<br />

10%<br />

15%<br />

20%<br />

Yes<br />

30.9%<br />

What minimum raise would make you<br />

interested in leaving your current job?<br />

13.3%<br />

<strong>Salary</strong> by industry<br />

Art/Ent../<strong>Media</strong> $74,722<br />

Financial services $104,119<br />

Food & beverage $86,139<br />

Govt./Public services $66,806<br />

Education $59,675<br />

Retail $70,708<br />

Sports $68,545<br />

Telecommunications $72,270<br />

Travel/Tourism/Leisure $93,239<br />

Trade association $69,966<br />

Healthcare/Pharma $93,349<br />

Tech/internet $105,852<br />

Nonprofit/Charity $59,712<br />

Industrial/Manufac. $105,963<br />

Other $102,081<br />

$129,830<br />

12.7%<br />

17.4%<br />

28.5%<br />

25% or more<br />

18.2%<br />

Wouldn’t leave<br />

0 20 40 60 80 100<br />

US $ in thousands<br />

21-25 years 26-30 years 31-35 years 36-40 years 41-45 years 46-50 years 51-55 years 56-60 years 61-65 years 66-70 years 71+<br />

$107,047<br />

Men Women<br />

Likely to change jobs within one year?<br />

$129,299<br />

$93,827<br />

$142,767<br />

$112,356<br />

$117.630<br />

$81,250<br />

$121,250<br />

$82,500<br />

$130,417


<strong>Salary</strong><strong>Survey</strong><strong>2005</strong>forPDF 2/15/05 7:01 PM Page 3<br />

right direction<br />

SALARY SURVEY <strong>2005</strong><br />

making $25,000 more”than female candidates.<br />

The gap may be due to factors other than gender<br />

bias,however.Recruiters say that more men<br />

tend to gravitate towards areas of PR that pay<br />

higher, such as financial communications. In<br />

addition,many women will leave the workplace<br />

to have children,often stranding them at lower<br />

salary levels when they return. Regardless of<br />

the reason, the disparity remains a concern,<br />

especially in an industry where women have<br />

been able to rise to the highest ranks.<br />

“It’s disappointing that there are still these<br />

artificial barriers left,”says Alan Arkatov,chief<br />

strategy officer at Los Angeles-based Rogers<br />

& Associates.<br />

Bill Imada,chairman and CEO of IW <strong>Group</strong><br />

PR,also based in LA,seconds that thought,but<br />

adds that PR is not alone.“It’s unbelievable,”<br />

he says, “but that actually falls in line with<br />

national statistics.”<br />

Less surprisingly, older survey respondents<br />

come out ahead on pay day, vastly outearning<br />

younger professionals. PR pros seem to break<br />

the $100,000 mark in their 40s.Those in the 36-<br />

40 age range report earning an average of<br />

$97,557,while those in the 41-45 range are some<br />

of the highest earners,bringing in an average of<br />

$128,510.The oldest respondents – those age 71<br />

and above – make the most,with an average of<br />

$130,417. That points to the increasing use of<br />

experienced communicators at the C-level as<br />

senior strategists and counselors.<br />

Just over 20% of respondents are also getting<br />

in the spirit of the rebounding job market and<br />

report taking a new job in the last year.Another<br />

30.9% say that they are likely to change jobs in<br />

the coming year.<br />

“People are willing to make moves,” says<br />

Spetner.“They are excited by new opportunities.<br />

Demand outstrips the supply right now.<br />

There is much less fear in the marketplace.”<br />

As well as the 29.8% who also admit they<br />

are currently seeking a new PR position,<br />

another very large percentage (49.9%) say<br />

they had been approached by a headhunter in<br />

the past year.<br />

Olson considers the large percentage of<br />

people who have met with a recruiter to be an<br />

excellent sign of “how robust the business is.”<br />

A premium on experience<br />

Interestingly,some of the toughest jobs to fill are<br />

junior to mid-level positions.Recruiters say that<br />

because of the downturn, many companies<br />

stopped hiring and training for the past two to<br />

four years.That makes it hard to find candidates<br />

with that amount of experience who are ready<br />

to begin a move up the job ladder.<br />

Renella asks,“If no one was hiring an entrylevel<br />

class in 2002,how many people with three<br />

years’ experience are available?”<br />

Michael Olguin, head of San Diego-based<br />

Formula PR,says he has encountered that problem<br />

often. He has also had difficulty with PR<br />

practitioners who began their careers during<br />

the dot-com boom and now suffer from having<br />

been promoted too quickly without having<br />

learned the necessary skills.<br />

“You get people who are just not that qualified<br />

and were overpaid for their experience<br />

level,” he says.“We had a [young woman] who<br />

had come in off the dot-com era and could not<br />

handle the pace and the expectations.”<br />

ChevronTexaco’s GM of public affairs Dave<br />

Samson says he has seen the same thing.<br />

“During the boom,frankly a lot of people got<br />

elevated titles and jobs that were beyond their<br />

experience levels,”he says.<br />

That’s good news for candidates with more<br />

traditional backgrounds, especially at wellknown<br />

companies. Having a high-profile<br />

résumé and an employment history with bigname<br />

entities can translate into a higher paycheck<br />

in this market.<br />

“If you’re going for people who are coming<br />

from blue-chip companies or senior posts at<br />

agencies, they tend to be more expensive,”<br />

says Samson.<br />

Certain sectors of the industry and certain<br />

markets are especially hot when it comes to pay<br />

and hiring.Not surprising,healthcare practices<br />

are always on the lookout for talent and offer<br />

some of the highest pay.Respondents who specialized<br />

in this area report an average income of<br />

$93,349. Most recruiters agree this is an area<br />

that never slowed down and saw little impact<br />

from the bad economy. However, specialized<br />

talent in this area is still scarce, making experienced<br />

people worth a premium.<br />

“Healthcare has been the place for the past<br />

three years,”confirms H&K’s Shedlarz.<br />

More unexpectedly,says Olson,“technology<br />

has come back really strong.” <strong>Survey</strong> results<br />

back this claim.Those specializing in tech/internet-related<br />

PR report a healthy salary average<br />

of $105,852. Locations known for tech PR also<br />

report higher salaries than other parts of the<br />

country. Silicon Valley and the Bay Area are<br />

once again hot markets. The average Silicon<br />

Valley/San Jose salary is $106,119, while PR<br />

pros in San Francisco are making an average of<br />

$108,985. Even Seattle comes in high, with an<br />

average of $101,700.<br />

However,the high cost of housing still makes<br />

it a challenge to find people willing to move to<br />

areas like San Francisco. “It’s hard to recruit<br />

up there,”admits Spetner.<br />

In a more general market focus, consumer<br />

goods is also a very busy practice area for<br />

hiring, although the salaries are not as robust<br />

as more specialized practices.The average food<br />

and beverage communications professionals<br />

report a salary of $86,139, while those in retail<br />

PR say they make $70,708.<br />

“Consumer seems to have been strong for<br />

most of this year,”says Kathy Cripps,president<br />

of the Council of Public Relations Firms.<br />

Olson points out that most of the highestpaying<br />

jobs, and many of the hottest markets,<br />

are still on the East Coast – for now. Boston<br />

(with an average salary of $132,087) and New<br />

30.9%<br />

claim they’re<br />

likely to change<br />

jobs in the<br />

coming year<br />

The senior ranks<br />

As Donald Trump would ask,is it book smarts<br />

or street smarts that gets you to the top?<br />

When it comes to the corporate PR world,<br />

schooling turns out to be less important than<br />

many people would imagine, according to a<br />

survey of those people at the very top of the<br />

PR profession – chief communications officers<br />

at Fortune 200 companies – conducted by<br />

Korn/Ferry International.<br />

Of the 53 CCOs who responded to the<br />

recent survey, only 29% have advanced degrees,<br />

and only five of those are in journalism<br />

or communications.The rest are split between<br />

MBAs,law,and others.<br />

“Traditionally in this function,the advanced<br />

degree is helpful, but practical experience<br />

far outweighs [its] value,” says Nels Olson,<br />

practice leader for external affairs at Korn/<br />

Ferry.“In the top searches we’re involved in,<br />

rarely,if ever,do they say an advanced degree<br />

is a requirement.”<br />

Even those in the PR education field agree<br />

with Olson.<br />

“I would not recommend six years of PR<br />

education,” says Jerry Swerling, head of<br />

PR studies at the USC Annenberg School<br />

of Journalism.Instead,he sees the PR masters<br />

as a tool for those trying to segue into the profession<br />

post-college.<br />

Korn/Ferry International compiled data on 53 chief communications officers of<br />

Fortune 200 companies (26% response rate from companies with revenue of<br />

$10 billion and above)<br />

PRWEEK • Subscriptions: 800-558-1708 17<br />

www.prweek.com • FEBRUARY 21, <strong>2005</strong><br />

GENDER<br />

Women<br />

34%<br />

AVERAGE COMPENSATION<br />

Men<br />

66%<br />

School might not be on the agenda for most<br />

of the survey respondents because this group<br />

has been busy at the office for the past few<br />

decades. More than a third of Fortune 200<br />

CCOs have 30 or more years’ experience in<br />

PR, while 36% have 25 to 29 years’ worth.<br />

Slightly less than a fifth (17%) have been on<br />

the job for 20 to 24 years,and only 8% come in<br />

between 15 and 19 years.<br />

And while women certainly are represented<br />

in the sample (34%),men still dominate at this<br />

high level. Olson, however, says he sees that<br />

figure changing.<br />

“You’re going to see a larger trend of more<br />

females in the top jobs,” he predicts. “It’s<br />

just a matter of time.They are working their<br />

way up.”<br />

Olson adds that he sees a trend of growing<br />

compensation for this top tier. The average<br />

base salary for a CCO is $327,000. But that’s<br />

not the whole picture. They also report an<br />

average annual bonus of $222,000 and a complete<br />

compensation package worth $549,000.<br />

That includes a range of stock grants worth<br />

$50,000 to $500,000. For the cream of the<br />

crop, 8% say that they have cash packages<br />

worth $1 million or more – proving that good<br />

communicators are apparently worth their<br />

weight in gold.<br />

YEARS EXPERIENCE<br />

20-24<br />

years<br />

17%<br />

15-19<br />

years<br />

8%<br />

25-29<br />

years<br />

36%<br />

Compensation $ amount<br />

Range of average annual stocks grants value: $50,000 - $500,000<br />

30 or more<br />

years<br />

39%<br />

Average Base <strong>Salary</strong> $327,000<br />

Average Annual Bonus $222,000<br />

Total Average Cash Package $549,000<br />

BREAKDOWN OF COMPENSATION PACKAGES DO RESPONDENTS HAVE AN ADVANCED DEGREE?<br />

$250K–$299K<br />

13%<br />

$300K–$499K<br />

30%<br />

Source: Korn/Ferry International<br />

$1Million<br />

or more<br />

8%<br />

$700K–$999K<br />

15%<br />

$500K–$699K<br />

34%<br />

Yes<br />

29%<br />

No<br />

71%


<strong>Salary</strong><strong>Survey</strong><strong>2005</strong>forPDF 2/15/05 7:01 PM Page 4<br />

<strong>Salary</strong> by job title<br />

US $ in thousands<br />

Base: 1864<br />

150<br />

100<br />

50<br />

0<br />

$162,191<br />

Chairman/<br />

President/<br />

CEO<br />

$126,867<br />

York ($115,730) remain the most lucrative<br />

markets, surprisingly followed by Milwaukee,<br />

where the average respondent is living well on<br />

$100,500 a year.<br />

“You see that in terms of the biggest jobs,the<br />

$1 million-or-more ones,they are still predominantly<br />

in the Northeast,”explains Olson.“That<br />

is because a number of those older, blue-chip<br />

companies are headquartered there.”<br />

Renella adds, “New York is an interesting<br />

market because it has the greatest supply of<br />

candidates,but also the greatest demand.”<br />

Despite so many areas of growth and the<br />

growing evidence of a hiring fever sweeping the<br />

industry,Jim Delulio,head of Southern California-based<br />

PR Talent, cautions that there isn’t a<br />

job-search frenzy yet.While people are willing<br />

to consider changing jobs, it is usually after<br />

some careful thought, and they are not willing<br />

to move just anywhere to grab a bigger pay-<br />

<strong>Salary</strong> by PR discipline<br />

Community relations $52,123<br />

check.There has to be a significant number of<br />

benefits to make the move attractive.<br />

“I am seeing people looking for the next<br />

right move and being more cautious about<br />

jumping,”he says.<br />

Motivating the talent<br />

Still, when it comes to motivators for job<br />

changes for survey respondents, money is still<br />

the top factor. Over half (54.7%) rate money<br />

to be “extremely important” or “very important.”<br />

Only three people (.2%) say it’s not<br />

important at all.<br />

Taking it a step further, more than a third of<br />

respondents (39.8%) say they are “very aggressive”<br />

or “aggressive” when it comes to salary<br />

negotiations,while almost half (45.4%) say they<br />

are “neutral”on the topic.For respondents who<br />

have taken a new job in the past 12 months,only<br />

11.3% say more money had been the reason<br />

behind the switch. Still, when asked what is the<br />

minimum pay raise that would interest a candidate<br />

in another position, more than half<br />

(54.3%) offer a relatively modest percentage<br />

between 5% and 25%.<br />

“There are variables like proximity to home<br />

and experience of management to consider<br />

before changing jobs, but otherwise I’d leave<br />

my current position for a 15% increase in<br />

salary,” says an AAE at a boutique PR firm in<br />

New Jersey (who did not want to be named),<br />

who currently makes $30,000.<br />

When it comes to increasing salary without<br />

a job switch, aspirations seem to be more<br />

modest.When asked what percentage increase<br />

in salary they expect at their next review,11.8%<br />

say none. Most respondents (48.1%) say they<br />

think their pay will increase between 2% and<br />

6%.Respondents are also split fairly evenly on<br />

their feelings about their compensation.Fortythree<br />

percent say they are well- or extremely<br />

well-compensated.”A slightly larger percentage<br />

(56.4%) complain that their compensation<br />

is either only adequate or that they are undercompensated.<br />

Aside from salary,candidates are once again<br />

asking about (and employees are demanding)<br />

Financial/IR $144,564<br />

Reputation management $120,612<br />

Brand management $92,331<br />

Crisis management $97,588<br />

COO<br />

Don Spetner... job candidates seek “a chance to<br />

blossom,to be appreciated,and to win”<br />

$104,789<br />

Director/<br />

Managing<br />

director/<br />

Partner<br />

Internal/employee comms $83,255<br />

Marketing comms $84,899<br />

Public affairs/Government $88,927<br />

Other $79,148<br />

$187,615<br />

0 30 60 90 120<br />

US $ in thousands<br />

EVP<br />

SALARY SURVEY <strong>2005</strong><br />

$155,108<br />

SVP<br />

$115,431<br />

VP<br />

$67,616<br />

PR<br />

manager<br />

Base: 1864 Base: 1864<br />

$64,134<br />

Account<br />

supervisor<br />

$53,273<br />

Account<br />

manager<br />

$49,850<br />

54.7%<br />

rate money as<br />

‘extremely’ or<br />

‘very’ important<br />

motivators for<br />

changing jobs<br />

SAE AE/PR<br />

officer<br />

programs for career development and opportunities<br />

for growth as part of the compensation<br />

discussion.<br />

“It’s going to become important for PR<br />

agencies to have good training and benefits<br />

because those are things that help retain people,”says<br />

Horn.<br />

Spetner agrees, saying that candidates are<br />

“looking for a chance to blossom, to be appreciated,and<br />

to win.”<br />

Similar to the statistics over the importance<br />

of money,over half (55.2%) of those polled say<br />

that they are extremely ambitious or very<br />

ambitious when it comes to attaining the highest<br />

professional rank possible in their career. But<br />

more than a quarter (26.9%) say they aren’t<br />

satisfied with the career opportunities within<br />

their companies. A further 32.8% say their<br />

company does not provide adequate training.<br />

That reality is making it more imperative for<br />

employers to provide talent with ways to grow<br />

within a company – or risk losing them to<br />

the competition.That means a renewed focus<br />

on creating an employee-friendly atmosphere<br />

that provides not only challenges, but also<br />

opportunities.<br />

“Culture and chemistry are two big parts of<br />

the equation,” says Edelman’s Biber, echoing<br />

what survey participants said about their reasons<br />

for changing jobs.“Candidates are looking<br />

for our philosophy, our vision, our value<br />

system.”<br />

Horn has seen the same trend.<br />

“The whole thing that we call the ‘employee<br />

experience’ is coming back in terms of its importance,”<br />

she says. “It’s something people<br />

appreciate and want.”<br />

Interestingly, while employees are demanding<br />

more from their employers,they are also less<br />

willing to acclimate. Just 9.9% give themselves<br />

an A+ on their willingness and ability to adapt<br />

to organizational politics.Twenty-five percent<br />

give themselves an A when it comes to fitting<br />

in,and another 23.4% say they rate an A-.<br />

Of respondents who had taken a new job in<br />

the past year, factors such as seeking new challenges<br />

(22.2%), promotion (12.4%), and bore-<br />

<strong>Salary</strong> by work setting<br />

PR agency $103,117<br />

IR agency $103,625<br />

Corporation $95,181<br />

Government $64,269<br />

Nonprofit $60,007<br />

Self/Freelance $84,905<br />

Trade association $86,789<br />

Education $57,744<br />

$39,789<br />

Other $65,709<br />

$71,557<br />

Freelance<br />

$53,587<br />

Other<br />

0 20 40 60 80 100<br />

US $ in thousands<br />

PRWEEK • Subscriptions: 800-558-1708 19<br />

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<strong>Salary</strong><strong>Survey</strong><strong>2005</strong>forPDF 2/15/05 7:01 PM Page 21<br />

<strong>Salary</strong><br />

by city<br />

Sacramento<br />

$70,100<br />

Base: 18<br />

•<br />

•<br />

•<br />

•<br />

• Seattle<br />

$101,700<br />

Base: 28<br />

dom/job dissatisfaction (12.1%) are cited as the<br />

reason for doing so.<br />

“They are making the decisions based on<br />

more than just compensation and benefits.They<br />

are making lifestyle changes,” says Chevron-<br />

Texaco’s Samson.<br />

H&K’s Shedlarz agrees, and says those<br />

lifestyle considerations become even more<br />

important to senior-level professionals.<br />

“The most important concern for any senior<br />

hire is the client experiences they’re going to<br />

have,”she says.“That is the number-one driver.<br />

That’s how people develop. That’s what gets<br />

them up in the morning.”<br />

Jenna Fisher, a recruiter with search firm<br />

Russell Reynolds,adds,“Part of it is that people<br />

move when they have the opportunity to have<br />

a bigger role.”<br />

That reality, explains Biber, has led some<br />

companies to go beyond just training to offer<br />

fast-track moves up the corporate ladder as a<br />

way to keep employees.<br />

“What I’m hearing is [that companies are]<br />

faster [in making] promotion moves than in the<br />

past to keep people,” she says.“[Agencies] are<br />

creating more opportunities within their firms.”<br />

Keeping with the need to entice employees<br />

beyond salary,perks are also once again a topic<br />

of interest. Vacations and flex-time inquiries<br />

from job candidates are on the rise in interviews.<br />

The survey results show that 28.5% of respondents<br />

say they currently are given 11 to 15 days<br />

•<br />

San Francisco<br />

$108,985<br />

Base: 71<br />

San Jose/<br />

Silicon Valley<br />

$106,119<br />

Base: 31<br />

Los Angeles/<br />

Orange County<br />

$86,789<br />

Base: 130<br />

San Diego<br />

$93,828<br />

Base: 18<br />

Dave Samson... people are changing jobs “based<br />

on more than just compensation and benefits”<br />

•<br />

Phoenix<br />

$74,719<br />

Base: 16<br />

• Denver<br />

$68,386<br />

Base: 22<br />

41%<br />

said they would<br />

be willing or very<br />

willing to move<br />

in order to get<br />

a better job<br />

SALARY SURVEY <strong>2005</strong><br />

Houston<br />

$76,708<br />

Base: 20<br />

Minneapolis<br />

$87,072<br />

Base: 25<br />

St. Louis<br />

$75,881<br />

Base:21<br />

•<br />

•<br />

Milwaukee<br />

$100,500<br />

Base: 10<br />

•<br />

Chicago<br />

$93,857<br />

Base: 117<br />

Dallas<br />

$74,620<br />

Base: 40<br />

•<br />

•<br />

off a year, 21.8% get between 16 and 20, and<br />

14.5% get between 21 and 25 days of vacation.<br />

“If I could choose between an extra week of<br />

vacation or a raise that was equivalent to the<br />

time off,I’d probably choose the vacation,”says<br />

Anne Williams, a PR account manager in Salt<br />

Lake City who didn’t want to name the agency<br />

she works for.<br />

Horn also points out that PR is a field with<br />

many women,and accommodating their needs<br />

is increasingly smart business for retention as<br />

well as hiring.“There are a lot of working moms<br />

out there, so flexible schedules are definitely<br />

something that we continue to hear about and<br />

provide,”she says.Others point out that fathers<br />

are often under the same pressures, and flextime<br />

is increasingly appealing to them as well.<br />

Compensation beyond salary<br />

Bonuses have also made a slight recovery from<br />

their dot-com popularity and subsequent belttightening<br />

demise. Of the 1,864 respondents,<br />

1,218 say they are eligible for a bonus this year.<br />

Sixty-one percent of those say it would be based<br />

at least in part on individual performance,while<br />

66.6% cite company performance as a factor,<br />

pointing to multiple aspects that go into determining<br />

bonuses.<br />

Horn adds that she is also seeing a slight<br />

resurgence in the popularity of signing bonuses.<br />

“That sort of fell by the wayside for the past couple<br />

of years,”she points out.<br />

•<br />

Detroit<br />

$80,655<br />

Base: 29<br />

Cincinnati<br />

$69,643<br />

Base: 14<br />

Atlanta<br />

$83,256<br />

Base: 54<br />

Ellen Shedlarz... “definitely seeing more of a<br />

willingness to relocate”by employees<br />

•<br />

Pittsburgh<br />

$53,083<br />

Base: 13<br />

•<br />

•<br />

•<br />

•<br />

•<br />

Columbus<br />

$95,511<br />

Base: 9<br />

Cleveland<br />

$92,625<br />

Base:12<br />

Boston<br />

$132,087<br />

Base: 53<br />

•<br />

•<br />

Wilmington<br />

$66,200<br />

Base: 5<br />

•<br />

•<br />

•<br />

•<br />

Miami<br />

$91,122<br />

Base: 17<br />

But Samson says that’s still not a common<br />

practice, and only in rare circumstances would<br />

his company consider a signing bonus.<br />

“We haven’t had to do to many of those this<br />

past year,”he says.<br />

Also returning from the dot-com days is a<br />

renewed interest in stocks and equity of all<br />

forms.Almost a third of respondents (30.3%)<br />

report owning shares in the company where<br />

they worked.<br />

“I would say you’re definitely seeing the<br />

structure of compensation packages changing,”<br />

says Olson.“You’re seeing many more grants<br />

of restricted stocks”instead of options.That has<br />

to do with accounting rules, he says. Other recruiters,<br />

however, also see it as a trend towards<br />

an entrepreneurial marketplace.<br />

“Over the past 12 months, I’ve seen a bit of<br />

a resurgence of venture capital and private<br />

equity-funded companies,” says Russell<br />

Reynolds’ Fisher.“And people are beginning to<br />

become more willing to move to more risky<br />

companies. I’ve had many candidates say to<br />

me point blank,‘Don’t make my compensation<br />

a hindrance.’ People are willing to take packages<br />

more focused on risk and reward rather<br />

than straight cash.”<br />

Porter Novelli’s global HR director Greg<br />

Waldron says this is a positive trend and that<br />

he would like to see more “novel approaches”<br />

to compensation in the PR industry. He fears<br />

that there is a cap to salaries since firms can only<br />

bill out a person at a certain rate. He adds that<br />

increasing competition for talent might make<br />

straight compensation deals too pricey for firms.<br />

Renella agrees that there is a limit to how<br />

high salaries can go.<br />

“We won’t be able to give that employee a<br />

25% salary increase and bill them out at the<br />

same margin,”she points out.<br />

One thing employees don’t seem to mind<br />

giving up is their hometown. More and more<br />

are willing to move if it means a good job.<br />

“We are definitely seeing more of a willingness<br />

to relocate,”says Shedlarz.<br />

Forty-one percent of survey respondents say<br />

they would be willing or very willing to move<br />

in order to get a better job,while only 7.2% say<br />

they would be very unwilling to pack up the U-<br />

Haul.And not many people say that they had<br />

turned down a job based on the need to relocate.In<br />

fact,more than half (56.7%) claim they<br />

had never done so, while 19.3% say they had<br />

done it only once in their careers.<br />

But Olson says that willingness to move does<br />

not come as a surprise.<br />

“Historically, [PR] has not had an issue with<br />

people relocating,” he says.“Across the board,<br />

most folks will move for the right opportunity.”<br />

•<br />

New York<br />

$115,730<br />

Base: 265<br />

Philadelphia<br />

$83,667<br />

Base: 39<br />

Baltimore<br />

$71,300<br />

Base: 20<br />

Washington,<br />

DC<br />

$86,742<br />

Base: 183<br />

PRWEEK • Subscriptions: 800-558-1708 21<br />

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<strong>Salary</strong><strong>Survey</strong><strong>2005</strong>forPDF 2/15/05 7:01 PM Page 22<br />

75.6%<br />

are committed or<br />

very committed<br />

to remaining in<br />

the PR industry<br />

Accreditation<br />

<strong>Salary</strong> by accreditation with the PRSA,<br />

IABC, or other<br />

US $ in thousands<br />

$102,031<br />

No matter what the future trends turn out to<br />

be, recruitment experts say that companies are<br />

already committed to aggressive retention and<br />

hiring strategies for the foreseeable future.<br />

“The overall tone or theme has been for firms<br />

or companies to do whatever it takes to keep<br />

their top players,” says Biber. “We are very<br />

conscientious of having a work-life balance.”<br />

PR Talent’s Delulio sees the same trend.<br />

“I think companies are being more aggressive<br />

about retaining,”he says.“But they are also trying<br />

to build a culture and an operating philosophy<br />

that engenders loyalty because, obviously,<br />

if you turn over your people, you are going to<br />

turn over your clients.Whenever there is a talent<br />

shortage, they focus on the need to have a<br />

culture and an employee-centered mentality.”<br />

Diversity issues<br />

Another area where companies are making a<br />

strong push in hiring and retention is in the<br />

diversity arena, and the experts agree that the<br />

numbers aren’t yet where they should be.<br />

The majority of survey respondents (63.1%)<br />

are women,which points to good gender diversity.However,most<br />

of the respondents (87.6%)<br />

are also white.About 5% are identified as black,<br />

while Asian practitioners make up 2.5%, Hispanics<br />

make up 4.4%, and Native Americans<br />

account for only 0.5%.Those figures are a far<br />

cry from demographic averages across the US<br />

and point to a serious need for more outreach<br />

into minority candidates.The lack of minorities<br />

is especially apparent at the top levels.<br />

“There are still not enough women and<br />

minorities at the senior-most levels and clients<br />

are asking for it,”says Spetner.<br />

Furthermore,the salaries of respondents who<br />

report being in an ethnic or racial minority are<br />

far lower than non-minorities.While the average<br />

Caucasian practitioner reports a salary of<br />

$90,056,black practitioners say they make only<br />

$67,223.The disparity is even greater for Asians<br />

and Native Americans, who report averages of<br />

$62,227 and $48,211, respectively. Hispanic PR<br />

pros fare a bit better at $75,622, perhaps pointing<br />

to corporate America’s growing recognition<br />

of this market.<br />

“I’m not surprised,” says IW’s Imada.“The<br />

communities of color are not typically getting<br />

the pay because they don’t have anyone who<br />

preceded them [in the agency or company]. So<br />

they typically start off in a lower-level position,<br />

as the receptionist, in the mail room, or they<br />

start off as an account coordinator.”<br />

Most agency recruiters say their companies<br />

SALARY SURVEY <strong>2005</strong><br />

$85,272<br />

Accredited Not accredited<br />

Base: 1864 Base: 1542 (undergrad); 415 (masters)<br />

Donna Renella... candidates from schools with<br />

“diverse populations has gone up considerably”<br />

<strong>Salary</strong> by degree major<br />

<strong>Salary</strong> by ethnicity<br />

US $ in thousands<br />

80<br />

60<br />

40<br />

20<br />

0<br />

$69,629<br />

$72,201<br />

$90,056<br />

$93,583<br />

$67,223<br />

$99,040<br />

$89,154<br />

PR/communications Journalism Business Liberal Arts Social Science<br />

$62,227<br />

White Black Asian Hispanic Native Other<br />

American<br />

are dedicated to diversity outreach, and have<br />

extensive programs in place on college campuses<br />

across the country, even reaching out to<br />

potential PR practitioners as early as their<br />

freshman year. Some say they are starting to<br />

see a payoff from those efforts.<br />

“On the entry level,the number of candidates<br />

that we are seeing from schools that are members<br />

of diverse populations has gone up considerably,”says<br />

Renella.<br />

Recruiters also say they are dedicated to this<br />

market because it represents untapped talent –<br />

something that can be in short supply in traditional<br />

hiring methods.<br />

“This industry tends to be a bit incestuous with<br />

hiring,”says Shedlarz.“If we don’t start to think<br />

outside the box, we won’t have fresh talent.”<br />

For H&K, Shedlarz says the solution is in<br />

being open. For example, her agency recently<br />

made a public affairs hire with no PR experience.<br />

Instead, the candidate had been deputy<br />

editor of the editorial group at the New York<br />

Daily News. “He brings a lot to the party in a<br />

different perspective,”she says.<br />

Rosanna Fiske, partner at Coral Gables, FLbased<br />

Communique/Rise Strategies and chair<br />

of the PRSA’s national diversity committee,<br />

also sees that progress has been made, and<br />

expects to see more.<br />

“It’s a matter of mathematics,” she says,<br />

pointing out that as the population continues to<br />

become more diverse, there will naturally be<br />

more diverse candidates and more diverse people<br />

moving into higher-paying roles.<br />

“More diverse society, more diverse workplace,<br />

more diverse candidates,” she says.“It’s<br />

just a reality that the older you and I get, the<br />

more diverse a society we’ll have in the US.”<br />

She adds that diversity may become a real<br />

recruitment tool in the future as younger generations<br />

place greater emphasis on having it.<br />

“For the younger generation, diversity is a<br />

part of their lives,” she notes. “Many of them<br />

almost require it.They see it as a need.”<br />

Another interesting figure on this year’s<br />

survey is the number of respondents with a<br />

degree in PR – an indicator of the growing number<br />

of universities that offer a specific program<br />

in this discipline. Over a third of respondents<br />

(35.9%) say they majored in the profession as<br />

undergraduates.Another 20% studied journalism.<br />

Only 4.8% came with a business degree.<br />

Renella points out that there are now 173<br />

accredited PR programs at US universities,<br />

which is a boon to recruiters.<br />

“It gives us much better candidates,”she says.<br />

$110,743 $109,668<br />

Undergraduate Masters<br />

$75,622<br />

$98,039<br />

$48,211<br />

$106,343<br />

$79,313<br />

$124,673<br />

“It also gives us more realistic candidates.”<br />

Jerry Swerling,principal of Swerling & Associates<br />

and director of PR studies at the USC<br />

Annenberg School of Journalism, agrees, and<br />

sees that such degrees are finally being granted<br />

a bit more respect.<br />

“Finally the value of PR education is being<br />

recognized by the industry,” he says. He also<br />

sees a PR degree as a benefit for hiring because<br />

“you have folks with a more rigorous background,<br />

folks who’ve really been seeped in the<br />

business, but also the business of the business.”<br />

But for most, PR education stops at the<br />

undergraduate level. Few practitioners continue<br />

on for an advanced degree. Among the<br />

respondents, 9.3% report having a masters in<br />

PR.Three percent say they have received a masters<br />

in journalism, and 5.8% say they have an<br />

MBA. Degrees above the masters level are<br />

almost non-existent: Fewer than 2% report<br />

having a PhD in PR, journalism, or business.<br />

But with or without a degree,the majority of<br />

respondents (67.1%) report that they find their<br />

jobs to be very rewarding or rewarding.Almost<br />

a third of those (30.8%) find their job to be even<br />

more rewarding than the year before.<br />

Most PR pros say that they enjoy their dayto-day<br />

work and find their jobs to be fulfilling.<br />

And an edifying 75.6% say they are very committed<br />

or committed to keeping communications<br />

as their career.<br />

Recruiters add that there is no reason they<br />

should not feel optimistic. With both salaries<br />

and opportunities on an upswing for the foreseeable<br />

future, the industry has a lot to offer<br />

both newcomers and veterans.<br />

“There has never been a better time to be in<br />

the business,” says Spetner.“And that will continue<br />

for the next 10 or 20 years.”<br />

The PRWeek <strong>Salary</strong> <strong>Survey</strong> <strong>2005</strong> was conducted<br />

by PRWeek and Millward Brown.<br />

The survey was open to all PRWeek readers.<br />

Respondents were invited via e-mail and<br />

were also allowed to enter the survey through<br />

PRWeek’s website.A total of 1,864 respondents<br />

completed the survey from January 18-31,<strong>2005</strong>.<br />

Results are not weighted.Based on this sample<br />

size,the results are accurate to a margin of +/-<br />

2.3% at a 95% confidence level.This report<br />

offers selected highlights only.The full survey<br />

results – offering numerous salary breakouts<br />

and opinion-based responses – are available in<br />

Excel format for $150.Please contact Christie<br />

Casalino at christie.casalino@prweek.com.<br />

FEBRUARY 21, <strong>2005</strong> • www.prweek.com 22<br />

Subscriptions: 800-558-1708 • PRWEEK<br />

US $ in thousands<br />

120<br />

90<br />

60<br />

30<br />

0<br />

Base: 1864

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