How agencies are responding to the Delta variant

The Delta variant feels like a sequel to a movie that nobody wants to see. As a response to the rising COVID-19 cases in parts of the country, The Centers for Disease Control and Prevention recommended this week that those who are vaccinated should start wearing masks in schools and in public indoor spaces in parts of the country where transmission levels are high or substantial. Nearly 64% of U.S counties are at a high or substantial risk level according to the CDC. Just last week, CDC Director Dr. Rochelle Walensky announced that the Delta variant now makes up 83% of all COVID-19 cases in the U.S. Some parts of the country have been affected more than others. States with lower vaccination rates have seen a rise in cases with three states—Missouri, Florida, and Texas—making up 40% of all cases nationwide last week, according to White House Coronavirus Response CoordinatorJeff Zients. Buy your ticket for the Ad Age Small Agency virtual conference Aug. 2-4 at AdAge.com/saca2021. Private and public entities have been responding. This week, the Department of Veterans Affairs, which runs one of the nation’s largest health systems, announced it would mandate coronavirus vaccines for its front-line workers. California and New York City this week gave government workers a choice: Get vaccinated or face weekly testing. Last week, Los Angeles County became the first county to enforce a mask mandate, The National Football League instituted a penalty meant to incentivize players to get vaccinated, and Apple told its workforce that it would push back its return-to-office date from September to October. So what does this mean for agencies? Most are left in a wait and see mode. Some have just started allowing employees back to the office and many already require employees to be vaccinated if they choose to attend the office. Many agencies are staying on their return to work path while monitoring state and federal guidelines closely. Others are fully embracing remote life and some shops are even canceling the plans they made as a response to the rise in cases. Holding companies are sticking with their current return to work plans while monitoring the situation closely, adjusting state to state. Back in May, Omnicom CEO John Wren sent a holding company-wide internal memo outlining guidelines for agencies returning to the office as a response to inquiries by employees. In the letter, Wren said the plan to return to an “office-centric culture” will be gradual and will vary by country, depending on the infection and vaccination rates. During the holding company’s second-quarter earnings call last week, Wren said Omnicom’s plans haven’t changed yet. “There's hesitancy on the part of everyone, but we can't predict the future,” Wren said. “One of the things that gives me some comfort is that when you get past the headlines and you read the people that have been impacted, it's people who haven't been vaccinated, received only one shot of a two-shot protocol or already had an existing health problem of one form or another. We’re starting to bring back the vaccinated people, in earnest, after Labor Day. People are encouraged to come back to the office. We do know that we've lived through a hell of a past, and we've done it successfully. So that gives us confidence.” Also during an earnings call last week. Philippe Krakosky, CEO of Interpublic Group of Cos., said the holding company expects to “have more people returning to our offices, in a flexible, hybrid model, beginning in mid-September, as is already the case in certain other areas of the world. We will, of course, be mindful of the public health situation, and of the learnings we’ve accumulated during the past 16 months when it comes to flexible work practices.” Publicis Groupe doesn’t have one set return date but is letting agencies decide on the local state-to-state level, Arthur Sadoun, Chairman-CEO of Publicis Groupe, told Ad Age. The holding company will continue to use its AI-powered platform, Marcel, which fully launched last year, as the go-to for tools and resources for employees to return to the office. A spokeswoman for WPP says the company is taking a market-by-market approach to its response to the pandemic and the return to offices: "We are carefully monitoring recent spikes in cases, and if needed will adjust our plans." Second guessing The changing situation around the country has left many agencies second-guessing its plans. Los Angeles agency Omelet had been planning for a hybrid return to the office in the fall after Labor Day, with staff going in two to three days a week. But now that could change. “With the new mask mandates and Delta Variant information, it's certainly giving us pause to ensure that we are listening to the science as remote work is still working for our business, even though it's not ideal for us as a company of humans who quite miss one another's company,” says Omelet CEO Thas Naseemuddeen. "I've learned that this is something you've got to just navigate day to day—sometimes hour by hour. We're making decisions with the best info we have in the moment and that's absolutely all we can do.” Buy your ticket for the Ad Age Small Agency virtual conference Aug. 2-4 at AdAge.com/saca2021. Most of the 30 agencies interviewed for this story have recently started allowing only vaccinated employees into their offices on an optional basis, with unvaccinated employees remaining fully remote. One such agency is Omnicom’s TBWA which, according to a spokeswoman, is preparing most of its agencies to adopt a hybrid return to work model in the fall. Specifically, TBWA\Chiat\Day New York and Los Angeles are still planning for a hybrid return to the office in September. Meanwhile, TBWA/Media Arts Lab, Apple’s lead agency, has reconsidered reopening as well. According to an agency representative, plans seem to be changing by the minute. At the beginning of last week, the agency had anticipated returning to the office in September. “Now, we’re currently planning our return to the LA Office tentatively for October or later, pending vaccination levels, case numbers, and county guidelines. We’re monitoring constantly and our plans will shift up or back accordingly," says the rep. This shows the nuanced nature of return to work plans for larger agencies. FCB Global’s North America division has over 1,500 employees and six offices. It’s New York and Chicago offices have been open, voluntarily, since spring and its Toronto, Montreal, St. Louis and San Francisco offices remain fully remote. The New York and Chicago offices are slated for a hybrid return in September but could change due to the Delta variant. “We are monitoring the Delta situation very closely. We do believe that it may alter or delay our plans in the fall if the situation continues to worsen in specific markets,” Tyler Turnbull, FCB North America’s CEO says. “One group that we are specifically thinking about are parents with young children. Given the children cannot be vaccinated, we will be extra sensitive to their situation as it relates to a return to ensure the safety of their family.” Proof of vaccination When it comes to requiring vaccinations, a number of agencies require employees to provide proof of vaccination to their HR department. Depending on the state this can include a copy of a vaccination card or an employee can self-attest that they are vaccinated. One agency that requires proof of vaccination is Kansas City, Missouri-based Barkley. “Only vaccinated people are allowed to work in person, all others are working remotely,” Jason Parks, chief growth officer of Barkley says. “We are checking for proof of vaccination by limiting access to the building (via key cards) to only employees who have submitted proof of vaccination via our confidential HR system. If a non-vaccinated person needs to visit an office for a short visit, we have a designated location that requires masks and social distancing.” The agency, which has 450 employees across multiple locations, is reviewing the CDC’s latest recommendations which could potentially change its policies moving forward. Given the growth of the Delta variant, the agency recently canceled its all-agency in-person annual meeting in September. Instead, the two-day event which includes internal awards, a review of the agency’s best ideas, a company party, and several outside speakers will now be fully virtual. “It's obviously disappointing. While we've had the opportunity to see each other's faces in our individual markets/offices, we haven't been able to get all offices together in one place for over 18 months. We were really hoping this would be our chance to do so. We had made the decision to do it in-person in April as vaccine distribution was becoming widely available.” Buy your ticket for the Ad Age Small Agency virtual conference Aug. 2-4 at AdAge.com/saca2021. It’s no surprise Independent agencies have more flexibility in making quicker decisions when adapting to quick changes in guidelines. Some shops are even embracing a fully remote model moving forward. Irvine, California-based agency Hooray is now going fully remote, says Eric Stein, Hooray’s chief creative officer. The nearly 30-year old company made the decision before the prominence of the Delta variant and will be using its office as a meeting space for clients and critical meetings only. “We've found for us, our culture, productivity and morale at first was a challenge, and then we figured out different ways to communicate, different ways to negotiate the creative process, where we became more efficient remotely,” Stein says. Working outdoors Independent agencies like Courtavenue, which has over 40 employees housed in offices in San Diego and Cincinnati, will continue to find creative solutions to the pandemic. “It seems as though most—if not all—Courtavenue employees are fully vaccinated, but with respect to the new COVID warnings of increased risk in enclosed spaces, we will take advantage of the warmer temperature while we have it," says a spokeswoman, referring to outdoor working spaces. “And if the risk persists (which we expect it will) as the seasons change, we will gather less frequently, but just bundle up and continue to meet outdoors.” Jesse Dundon, CEO of Hathway, an agency with a headquarters in San Luis Obispo County in California and employees across the country, says most of its employees aren’t eager to return to the office on a regular basis. “I don’t particularly care where they are as long as the job gets done,” Dundon says. "We haven't had a chance yet to modify our policy, but do want to note that San Luis Obispo County is still in a 'moderate' transmission county where masks are not recommended by the CDC. At a minimum, we will likely conform to the CDC or local guidance wherever our employees are located (i.e. masks indoors if our employees are in a substantial or high transmission county, or in a county that already mandates masks indoors like Los Angeles). We may suspend in-person activities in those areas completely.” At the end of the day, policies for most of these agencies could be different a week or month from now. All agencies Ad Age spoke to for this piece say that, above all else, they will prioritize their employees' health first. No one knows what the future holds as a second COVID-wave seems imminent. The main difference is this time around most agencies feel prepared because there is a feeling of deja vu. “One mistake many have made is being definitive about dates,” Omelet’s Nassemuddeen says. “It almost feels like it jinxes us. Of course it's a double-edged sword because people want clarity and a way to plan their lives, but this pandemic has truly had a trajectory that no one has easily planned for.” Contributing: Ann-Christine Diaz Want to learn more about agencies? The Ad Age Small Agency Conference & Awards is the only industry event specifically created for independent shops of fewer than 150 full-time employees. Buy your ticket for the Aug. 2-4 virtual event at AdAge.com/saca2021.

How agencies are responding to the Delta variant

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