‘We need to be honest with ourselves – the industry will end 2020 smaller than it began it,’ is how PRCA director general Francis Ingham sums up results from the industry body’s Pulse survey examining how PR is adapting financially to the current crisis. While the data makes for sobering reading, there are strong signs of readiness for the period of recovery that will follow these times of furlough, pay cuts and redundancies.
The survey of 62 industry professionals found that:
– 15% of respondents have applied for business interruption loans, with a further 10% planning to do so
– 60% have furloughed staff
– 50% have implemented pay cuts for staff, and a further 10% expect to do so
– Almost two-thirds of staff pay cuts have been in the 10-25% bracket
– 60% have been financially impacted
– 50% expect to have to make redundancies
‘Given these numbers, the low take-up of business interruption loans shows that there is something wrong with the current system. If the loan model cannot be made to work, then the Government should give serious and urgent consideration to a grants model instead,’ says Ingham of the findings.
‘At a time when business leaders are making painful decisions for their colleagues, it is good to see that they are sharing the financial burden personally.
‘The inherent strength and flexibility of PR means that we should nevertheless be confident about the future, and confident about the strength of the recovery that lies ahead.’
Full data from the PRCA survey with The Pulse Business can be found here. Find resources for working during the COVID-19 crisis by downloading Navigating uncertainty – the Vuelio toolkit for communicators.