Profits in the PR sector take another dip

 |  By: Synergist In: Trends

Kingston Smith Operating Profit Chart7A new report concludes that profits at PR firms in the UK continue to slide. In their latest Marketing Monitor of August 2012, Kingston Smith W1 report that PR consultancy operating profits per head – the analysts’ preferred measure of a company’s performance – have fallen for the second six-month period in a row.

The report recommends specific benchmarks for PR consultancies to aim for:

Operating profits per head of at least £15,000. The survey estimates that the figures for PR firms are currently running at only £12,636, down from £13,430 six months earlier.
Employment costs limited to 55% of gross income. Currently, PR staff costs are running at 62.9%, which, again, has worsened since the previous survey.

How Synergist can help

Synergist delivers live visibility of jobs, highlighting those you are over-servicing. It also reduces the burden of administration time, releasing more time for chargeable client work and client prospecting –something that Synergist also helps with. It provides easy-to-use online timesheets plus a drag-and-drop scheduling tool that makes staff scheduling simple. It is this totality of real-time control of jobs, time and resources that gives Synergist its unique strength.

A user’s perspective

Liam Herbert is Director of Operations at JBP PR, a 30-strong public relations consultancy. They installed Synergist after using spreadsheet-based reporting for time management. “Since installation we have been able to pull together consistently accurate information for job reporting, which has resulted in far better control of both our time and resources.

“The system has highlighted and helped prevent over-servicing on certain accounts. Forecasting has become much easier. And Synergist has enabled us to identify spending in areas where we previously lacked information.”

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