PR organisations perform many functions, from media relations to mitigating a scandal affecting the company’s reputation – how can a PR company ensure that the sum of all of these tasks form a profitable agency? Here are Tempora’s top 3 tips:
• Record Time Accurately – Different tasks will have different fees associated with them, so it is important to ensure that your staff are recording the correct amount of time against the correct tasks – if they don’t, then any reports on the profitability of each task that is generated may be misleading.
• Take Overtime into Account – It is important for PR staff to be available day and night, to spring immediately into action in the event of a media relations disaster. Unexpected emergencies – and even planned out-of-hours events – can result in your staff members racking up a lot of overtime. It is important to ensure that overtime is recorded by your staff accurately (and that your company’s policy on overtime is clearly documented!), since overtime pay could make the difference between a project earning a profit or incurring a loss.
• Adjust your Charge-Out Rates – Generally, the more experienced a staff member is, the more you can sell their time for – it is therefore important to determine which combination of staff will maximise your profit margin. You may also want to discount (or add a premium to) your staff members’ charge-out rates for certain clients to strike a balance between competitiveness on price and profitability.
Tempora can provide your PR agency with a time recording system that enables you to specify your staff members’ cost rates and charge-out rates, allowing you to then run a range of reports on the projects that your staff have worked on to analyse the profitability of these projects. Maximise your profit margins with Tempora – call us today to arrange your free Tempora trial.