Download the 2010 OC PUBLIC RELATIONS FIRMS List (pdf)
The county’s largest public relations agencies have started hiring again.
The top 37 agencies—ranked by Orange County employees—inflated their collective workforce by 6% to 356 people in the past year, according to this week’s Business Journal list.
Total employment, which includes human resource, administrative and other employees, increased 6.7% to 384 people, up from 360 people a year earlier.
“The whole communications industry is beginning to rebound as accounts frozen last year are melting,” said Daryl McCullough, chief executive at No. 1 Irvine-based PainePR. “It’s a gradual return to normalcy.”
In all, 11 companies reported increases in local employment. Sixteen said they were flat. Six reported declines in workers. Four were Business Journal estimates.
It’s quite a change from last year when agencies were cutting people in response to declining marketing budgets and a slowdown in marketing in general.
Public relations agencies on our 2009 list saw a 16% decline in local jobs.
“We have all cut staff down to our core employees,” said Rebecca Hall, chief executive and president of No. 8 Costa Mesa-based Idea Hall. “We trimmed down to our core teams to tackle our clients’ marketing needs.”
Idea Hall lost one public relations employee in the past year for a total of 12.
The agencies on the list provide media relations, crisis control and general communication management for businesses in all types of industries.
Irvine-based PainePR topped the list again with 24 local workers, down by five people, or 17.2%, from a year earlier.
The firm’s total local employment dropped 5.9%, to 32 workers.
The reduction in staff was a response to smaller budgets from its clients in 2009, McCullough said.
But he anticipates it will be a temporary drop as PainePR’s clients are looking to market themselves again.
McCullough plans on hiring this year.
“The challenges have just changed and we’re focused on talent acquisition,” McCullough said.
The agency, part of Canada’s Cossette Communication Group Inc., counts Brea’s American Suzuki Motor Corp. and Irvine’s Toshiba America Business Solutions Inc. as clients.
PainePR likely is the best representation of the trend in the past year for the companies on the list, which is one of the most difficult for the Business Journal to produce.
Every year, public relations executives accuse others of inflating or downplaying their figures.
Like PainePR, most agencies reported stabilization in marketing budgets after weathering deep cuts during the recession. Many are beginning to see companies looking to talk about marketing opportunities.
“Public relations firms and other marketing agencies tend to be a leading indicator for growth in the economy and employment,” Hall said. “We are a reflection of our clients’ growth.”
Many companies are looking to grow on the heels of new business.
The Seal Beach office of Atlanta-based Leader Enterprises Inc., a newcomer on the list at No. 2, saw the biggest percentage increase; it reported a 46.7% uptick in local public relations workers to 22 from 15.
The firm has been hiring on the heels of new business generated by referrals from companies including DirecTV, Motorola Inc., Vizio Inc. and Gerdau Ameristeel Corp.
“We’re not staffing ahead of the curve, but attempting to bring on people to service our clients effectively,” said Marc Altieri, vice president of marketing communications.
No. 4 Tustin-based Echo Media Group also is looking to add workers to specific divisions in its company.
“We have spent our time handpicking individuals to add to our team and we are expanding our social media division,” said Kim Sherman, founder and managing principal.
Echo Media was flat for the year with 15 workers.
Likewise, No. 17 Orange-based West-bound Communications has been adding workers to handle its changing mix of clients. It was up one employee to nine.
“Some sectors that are still doing well throughout the downturn tend to be government and healthcare work,” said Scott Smith, Westbound’s chief executive and president.
The firm counted government work as less than 10% of its billing in 2005, but now sees about 65% of its billing come from government projects.
Westbound is working on two of the larger Orange County Transportation Authority projects: the Riverside (91) Freeway improvement and the Orange (57) Freeway improvement.
Other shops have seen more interest from the recovering corporate and entertainment sectors.
“We have dabbled in the past in the entertainment field, but have gotten more heavily involved this year,” said Doug Freeman, partner at No. 4 Irvine-based Freeman/McCue Public Relations. “It’s kind of a right place at the right time scenario.”
Freeman/McCue lost one employee in the past year for a total of 15.
Other shops are hesitant to add workers as clients still are planning just for the short term.
“Companies are hesitant to make a commitment every month and are looking to project work to see how it goes, how we do and how their budget goes,” said Hilary Kaye, president of No. 11 Tustin-based HKA Inc. Public Relations.
HKA was down one worker in the past year for a total of 10.
The list also saw several newcomers including No. 8 Newport Beach-based Capwell Communications with 12 employees, No. 25 Irvine-based Consensus Inc. with six, and No. 33 Corona del Mar-based Sterling Public Relations Inc. with five.
