Why is it Suicidal to Slash PR Budgets at Times of High Inflation, Recession, or Pandemic Crises?

High inflation is hurting businesses around the world. Many organisations have lowered costs to stay afloat, but this can be costly. “PR services” are one of the first things companies cut when they need to save money. This needs to change.

The current state of the global economy is one that is suffering from exceptionally high inflation rates, which is having a variety of negative effects on businesses. In order for their businesses to continue operating, a lot of organisations have been forced to take shortcuts and lower their costs, but this can come at a price. It is important for businesses to give careful consideration to the elements they remove from their budgets because doing so may have unintended consequences.

In times of economic uncertainty, companies often decide what will be cut without first conducting research or establishing a strategy. When businesses examine their costs, they prioritise their requirements in order of importance and then look for places to make cuts in areas they deem “non-essential.” However, these evaluations are typically short-sighted because they focus on the current situation rather than the company’s long-term future. When businesses need to find places in their budgets to save money, one of the first services they cut is typically their public relations (PR).

This is a dangerous tendency that has to be stopped. Since public relations doesn’t seem to have any immediate consequences, many companies think they can cut corners by dismissing it.

When faced with dire situations like rising inflation, an economic slowdown, or a pandemic, public relations will prove to be your most effective instrument for survival.

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Having a public relations expert on hand during a crisis can be the difference between things getting better and getting worse

Many organisations have gained a better understanding of the significance of having a communications plan in place, thanks to the pandemic. When the pandemic struck, most businesses were forced to temporarily shutdown. When they tried to reopen, many of them encountered significant difficulties or were unable to do so at all. The companies who came out on top had thorough and robust plans in place to ensure they could stay afloat no matter what the future promised. While the benefits of public relations take some time to manifest, the effects of a crisis can be felt almost immediately, and what’s worse is that they can continue for a very long time.

In times of crisis, having a public relations specialists at your disposal is your first line of defence in preventing things from getting any worse. It is too late to hunt for a crisis response team when the repercussions of a crisis begin to set in with your company; instead, you should already have a crisis team in place to respond to a scenario as soon as it emerges. During times of conflict and crises, public relations is a necessary piece of effectively communicating with the people at large. Businesses that are negatively impacted by inflation will want to take control of the story being told. If you do this, you will prevent the general public from getting the impression that something is wrong with the company, which may lead to a panic that would make the already detrimental effects of the crisis much worse. The stability that a public relations team can provide is quite valuable, particularly in terms of having a single point-of-contact and spokesperson who can be relied on at all times. Teams responsible for public relations work to ensure that everything is consolidated and organised.

This makes it possible for teams to communicate with the public in a manner that is consistent in its messaging. It can be challenging to handle communications in the absence of a public relations team, which leaves the door open for potential inconsistencies and contradictions. Public relations teams play an essential role in the execution of a particular sort of communication strategy, namely one that involves the use of social media. Navigating the realm of social media is a totally new experience compared to any previous form of communication, and the tools available on social media have the potential to make or break a crisis response. However, as with anything published on the internet, a social media post cannot be removed once it has been shared publicly. 

If you want to succeed in business, you must always prepare for the worst. This is why cutting your PR budget would be a bad idea

When it comes to running a business, you should never stop planning for the worst possible outcome. Because of this, it is not a good idea to remove funding for public relations from your budget. In a perfect world, you would be able to go several months without putting any effort into the public relations of your firm. Nevertheless, there is always the question of “what if?” What is going to happen if everything goes wrong and you find yourself in a precarious situation? Because your company is poorly equipped to deal with these new issues, it is possible that this will result in the closure of your business.

There are often alternatives to fully removing public relations from your company’s budget, which can ensure that your company’s demands are satisfied while simultaneously reducing your spending during times of economic unpredictability. Make an effort to negotiate a lower price in exchange for receiving fewer services. Although you can’t expect someone to do the same amount of work for you for a lower price, some businesses do provide retainer services in which you keep them on for advice but they don’t actually undertake any media relations work for you. When it comes to public relations, it is preferable to do something rather than nothing at all. It’s true that we live in challenging times, and sometimes you have to make challenging choices in order to ensure the success of your company.

However, you need to think about whether or not it would be beneficial for your company to reduce the amount of money it spends on public relations. Although this may be the case in some circumstances, the vast majority of businesses will find that public relations are an essential component of their long-term success.

Public relations is vital for businesses, especially in times of economic uncertainty. Due to the recession, sales pipelines diminish, leaving sales managers anxious about KPIs. As organisations slash expenditures, management must produce a miracle. No PR/marketing cuts.

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