Sign up here for the latest articles
By Lucinda Peniston-Baines
The battle for brains will be a big issue as agency life starts to return to normal. Advertisers need to secure the best people before the over-servicing stops.
One thing we know, however, is that things can’t continue as they have been, and that the year ahead will be hugely challenging for many businesses that rely on agency advice…The smartest will be locking in the people they truly value right now.
Advertisers have benefitted enormously from lockdown. Agencies have been under the cosh and happy to over service their accounts to keep revenue coming in.
Agency talent has been stuck at home, with work-life boundaries blurred to the extreme and ready to answer a call at a moments’ notice at any time of day.But that will all change as the new normal, or whatever it is we are calling the end of the pandemic, arrives.
Once agencies start returning to the office – and most will return for multiple reasons, young staff who like the social buzz and have smaller living space at home, for example – there will be a talent crunch that advertisers need to prepare for.
Over 21,000 jobs lost in the last 6 months from holding companies
The crunch will be accelerated by the fact that many holding companies have moved to slash headcount to deal with the financial impact of the pandemic. In the last half year, we’ve seen Omnicom and IPG cut headcount by 10% (that’s 10,000 jobs in total), while WPP has slashed 5,000 positions and Dentsu has cut 6,000.
In short, there are fewer people to service the same number of brands. We are already seeing the impact of this with the same names frequently cropping up on multiple RFPs across all disciplines. These are people that we know are also supposed to be managing big bits of existing business for their agency. Really good talent is being pulled in multiple directions.
This talent tightening will be particularly critical in the high demand areas such as D2C and eCommerce, where the step change in the way we shop has meant more brands need to develop a more direct link to the people who actually buy their products. That will create additional demand for those who can develop great loyalty and subscription programmes. The number of people who can come up with innovative ideas for subscription approaches that work globally is very small indeed.
Additionally, production talent will also be in strong demand as big global brands seek to reduce costs on content by boosting in-house operations while the need for people who can develop innovative thinking around product development and routes to market is also high.
The challenge for advertisers is to adopt a new approach that recognises that they can no longer simply expect talent to be at their beck and call.
Firstly, they need to give agencies more time to assemble teams and ideas. Call today for something you needed yesterday won’t work anymore, unless you are prepared to compromise on the talent. Agencies will need more realistic and generous timelines.
Secondly, they need to accept that the unsustainable pace of working life in the lockdown cannot continue. Hours will become shorter and breaks will become more regular so demands need to be managed much more carefully, with a greater respect for the mental health and work-life balance of agency colleagues.
Thirdly, project-based contracts may no longer be as effective. The pre-pandemic trend for more project work, where talent is switched on and off as required, may become unsustainable. Mindful of recent job losses, the best talent may decide to it doesn’t want to be part of an unstable relationship. Consistent engagement with the best talent may be the only way to ensure they focus on your business.
As we all adapt to new ways of working and potentially a new hybrid system where some people are in the office and others are still at home for a few days a week, for example, there will be bumps along the road. Just as there were when we all adapted to home working.
One thing we know, however, is that things can’t continue as they have been, and that the year ahead will be hugely challenging for many businesses that rely on agency advice. Smart advertisers will want to ensure that they have the best talent on board to assist.
The smartest will be locking in the people they truly value right now.
About the author:
Lucinda Peniston-Baines is a co-founder of The Observatory International