Salary surge or talent drain? The conundrum facing UK public relations

The UK government’s decision to tighten immigration policies by raising the minimum salary requirement for employer-sponsored visa seekers has sparked a contentious debate among recruiters across all industries, with PR and communications being no exception. 

After an industry-wide concerted effort to diversify the talent pool and ensure agencies better reflect our wider society – leading to more inclusive, high-performance cultures across the board – this move is widely considered a step in the wrong direction. Despite the recent U-turn regarding the timelines for this major policy change (due to the inevitable backlash following the initial announcement in early December), the ramifications remain unsettling for employers and employees alike.

One of the primary concerns arising from the change in sponsorship requirements is its potential to hinder the breadth of talent from a junior to mid-level. Among those impacted are recent graduates on a post-university visa, which was only re-introduced in 2021 after a nine-year hiatus, who will be forced to find work in higher paying industries that can guarantee them salaries that reach the planned minimum requirement of £38,700, a 48 per cent increase from the current rate, within their first few years of work.

Although an interim increase to £29,000 was leaked in late-December, the PR industry will struggle to be a feasible option for international students starting their career in the UK due to the government’s efforts to tighten immigration controls. Especially given that entry-level salaries tend to align with the London Living Wage at best, currently equivalent to around £24,000 per annum. Meanwhile, the guidance for employer-sponsored professionals earning under the long-term £38,700 minimum threshold is unclear and could drive some to apply their transferable skillset elsewhere.

Hiring international talent

A further risk surrounding the upcoming changes is their potential to hinder the hiring of international talent with the cross-cultural competence and localised contacts that clients are increasingly demanding. With agencies battling with one another for the opportunity to work with global brands and businesses, how can they service them fully without on-the-ground knowledge and experience of a wide range of media markets and audience demographics? 

The success of the PR and communications industry is dependent on worldly expertise and insights. So, without culturally competent junior talent climbing the career ladder, coupled with many professionals experienced in these areas continuing to move in-house or into freelance roles that better complement their lifestyle, the UK agency landscape is at risk of losing business to its EU counterparts. Needless to say, the latter will be in a better position to boast a more diverse and international workforce.

A final concern is the inevitable ripple effect that could occur if agencies attempt to overcome the above challenges by hiring the same talent as before and paying more to do so, but not reflecting these changes for all employees. If agencies lack consistent salary bandings and decide to make exceptions for employees who require sponsorship, those who already have the right to work in the UK will lose satisfaction with and trust in their employer – which will impact retention rates across the industry. 

Equally, agencies that choose to make blanket increases at specific levels to compensate for the increased minimum salary, could suffer from wage compression, whereby the salary differences between levels become narrower and promotions are not suitably rewarded. Without charging higher fees, necessary cuts to compensate for increased salaries will likely impact benefits packages, training opportunities, and cultural initiatives; all of which will make PR agencies less enticing places to work.

Ultimately, while the UK government's move to raise the minimum salary requirement for visa seekers aims to prioritise the domestic workforce, there are broader potential consequences posing a risk to the globally connected and integrated industry we are proud to work in, and the recently extended timeline for the proposed change will only soften the blow in the short-term.

Ruby Kite is Talent Lead at The PHA Group.