Small independent publishers tend to hire their first employees once revenues hit $250,000 and significantly increase their payrolls when revenues top $1 million, according to results of the first annual salary survey sponsored by the Publishers Marketing Association. Total gross salaries for companies with revenues between $250,001 and $1 million averaged $187,879, and they had two full-time employees, compared to total gross salaries of $272,222 at companies with revenues between $1,000,001 and $1.5 million, which had nine full-time employees. Company payrolls averaged $357,500 at publishers with revenues between $1,500,001 and $2 million (they had 11 employees), while companies with revenues between $2,000,001 and $3 million had total salaries of $530,000 (nine employees). Publishers with revenues over $3 million had 19 employees and payrolls of $885,714.
As did PW's annual salary survey, the PMA study found that the highest-paid positions are in management. The highest salary reported to PMA was $350,000 for a CEO of a publisher with revenues of more than $1 million. An owner/chairman took home $250,000, while a v-p for finance and accounting earned $150,000. The top paid editorial position was an editorial director who had a $150,000 salary, while the highest-paid marketing director earned $90,000.
The survey, which was based on responses from 207 publishers from across the nation, also found that 68% of reporting companies offered employee benefits, with 65% of those that offer benefits providing health insurance and two-week vacations.
The survey also measured sales per employee and found that at companies with revenues between $2 million and $3 million, sales per employee came to $333,333. Publishers with revenues in the $1.5-million to $2-million range averaged $181,818 sales per employee, while sales per employee at companies with revenues between $1 million and $1.5 million was $166,667. Productivity was high at companies with revenues between $250,001 and $1 million, registering at $250,000.
A PW check of some larger publishers found that Millbrook Press, with revenues of $21.6 million and 48 full-time employees, had sales per employee of $450,000. Thomas Nelson, with revenues of $298 million and 1,080 employees, had sales per employee of $275,925, and John Wiley, with revenues of $613.8 million and about 2,600 employees, had average sales per employee of $236,077.