Survey: Trade Publishers Expect to Reduce Personnel Costs By 15 Percent
ABM CEO: ‘This is the worst thing we’ve gone through since the 1930s.'
It’s no secret that the failing economy has negatively impacted all sectors of the magazine business this year, particularly b-to-b publishing. So much so that publishers are making financial adjustments, especially in regard to personnel, in order to survive.
According to a recent American Business Media survey, conducted online by research firm Towers Perrin, 70 percent of member respondents indicated that they have reduced workforces this year. More than 80 percent of respondents said their company has frozen or plan to freeze salary increases for all employees, according to survey results. One third of respondents said they have reduced employee salaries while 22 percent of those said the reductions are temporary.
Results indicated that publishers who participated in the survey expect financial adjustments to reduce personnel costs by up to 15 percent this year.
“This is probably the worst thing we’ve gone through since the 1930s,” ABM president and CEO Gordon Hughes told FOLIO:. “Did we find out much we didn’t already know? Not really. But, this is a confirmation for our members to say that while what they’re doing is difficult, it’s what they need to do now to stay in business, and is what their peers are doing, too.”
Survey results also showed that 78 percent of respondents have or are cutting T&E spending. Seventy-three percent said they have frozen or reduced new hires.
Meanwhile, roughly 25 percent of respondents reduced the number of employees receiving annual incentives. Sixteen percent reduced the number of employees receiving stock- or cash-based long-term incentives.
Hughes said approximately 20 percent of the group’s 150 members participated in the survey. The entire report is available only to members who participated in the survey, ABM said.