In Light of Great Resignation, Budgets for 2022 Must Consider Labor Costs More Closely

If any industry could come out of the chaos of 2021 with a positive outlook, it is public relations. While events in 2020 helped elevate communication as essential, 2021 built on that notion, particularly with the emergence of COVID-19 vaccines and information needs for a world ‘returning to normal.’

And while normalcy and reopening seem delayed in some respects, the need for communicating changes in vaccine directives and other policies remains a high priority for every organization.

Data from Davis+Gilbert LLP, a law firm that works with many communication businesses, shows 95 percent of PR outlets surveyed anticipate net revenue increases in 2022, a far more optimistic look to the future than at the same time last year.

This is great news for those in the process of creating a budget for 2022. While fundamental needs for organizations may have changed in terms of operational costs, a reassessment of strategy can provide opportunities for a beneficial re-allotment of funding.
Budget Review
2021 saw tightening of many organizational budgets, but also a reprieve from changes in operational costs. According to the Davis+Gilbert survey, PR firms took steps to increase profitability, which included reducing discretionary business and entertaining expenses and a reduction in speculative and client business travel. Many clients are now used to conducting meetings via Zoom, Slack or Microsoft Teams.

Rick Gould, CPA and managing partner at Gould+Partners, has been involved in the financial side of the PR industry for over 30 years. He says it’s not too late to start 2022 budget planning, particularly as it should be considered a rolling statement, with continued revisions as conditions change. These could include a major hiring of an executive or the acquisition of a big new client.

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