Key Takeaways from Anchin’s Year-End Planning Workshop for PR, Marketing and Communications Firms

As 2025 comes to a close, Anchin, in partnership with Commpro and Davis+Gilbert, hosted an interactive workshop for decision-makers in the Communications industry. The session focused on the strategic and operational challenges firms must address to position themselves for success in 2026. Some of the key areas discussed include:

1. Compensation Pressures Are Rising

• 37% of firms expect to spend more than 60% of net revenue on compensation, the highest ever reported in Davis+Gilbert’s 13th Annual Public Relations Industry Trends Report—a 5% increase from last year.
• This trend leaves less room for rent, training, and investment. Firms must rethink hiring strategies, including leveraging independent contractors and optimizing staffing models.

2. Talent Strategy and Over-Servicing

• Over-servicing clients and escalating compensation demands are eroding margins.
• Smart staffing, cross-functional teams, and upskilling are critical to maintaining profitability.

3. Remote Work and Tax Implications

• Remote hiring is now standard, but it introduces state and local tax (SALT) nexus risks.
• Payroll and income tax obligations vary by state, and firms must comply with the laws in all states where they have remote workers.
• Hiring remote employees also requires firms to update employment handbooks and restrictive covenant/protective covenant agreements.

4. AI Adoption and Risk Management

• AI is widely used for analytics, content creation, and social listening, but risk factors remain.
• AI checkers are not foolproof—human oversight and training are essential.
• The next frontier: Agentic AI, which will transform automation and client engagement.

5. Financial Performance Optimization

• Layoffs rose to 20% in 2025, up from 12% in 2024, signaling cost pressures.
• Incentive and equity plans are emerging as key tools for retaining mid-level and senior talent without immediate cash outlays.
• Top-performing firms use long-term incentive plans to align talent retention and economic incentives.
• Proactive financial planning—rather than reactive measures—will define success in 2026.

Action Items for 2026

• Review compensation structures and hiring models.
• Implement incentive and equity plans for retaining and attracting key talent.
• Assess SALT exposure and update compliance policies.
• Develop AI governance frameworks and implement client contracts to help monitor AI usage.
• Build predictive strategies for crisis management and client engagement.

A special thank you to all the presenters for sharing their insights and to Commpro for co-hosting this valuable discussion.

Davis+Gilbert’s 13th Annual Public Relations Industry Trends Report draws on insights from 181 firms across geographies and specialties, offering a comprehensive view of the industry’s current state and future direction. Click here for more information: https://www.dglaw.com/wp-content/uploads/2025/11/DavisGilbert-Experience.pdf