How the Great Resignation is impacting the ad industry

For the majority of 2021, near-record rates of workers were quitting their jobs each and every month. Some were reshuffling to companies offering better pay or flexibility, but millions were just burning out—no longer willing to stay on the hamster wheel—and prioritizing their mental and physical health during the pandemic. All told, some 38 million Americans quit their jobs last year.

Because of this, all industries are scrambling, but creatives suddenly have more control over their careers than ever before. “It's the talent candidates' market now,” says Kenny Nguyen, CEO and co-founder of ThreeSixtyEight. “Agencies have to move much faster to get potential candidates to remain interested vs. the multiple other opportunities they are weighing.”

Elephant’s CEO, Eric Moore, agrees. “While the data clearly shows more people are leaving their jobs than ever before, we’re also seeing people in creative fields taking more time to reassess what’s next, resulting in what we hope is a temporary gap in supply of creative talent.”

How the hybridization of the workforce leads to transformation

Amp members haven’t been immune to this strain, whether within their own business (though many view employee turnover as a normal facet of careers) or among their clients. “Both internally and client-side, agencies are facing the challenges that come with having new team members, loss of legacy knowledge and shifts in work methodologies,” says Loren Blandon, global head of learning, growth and experiences at VMLY&R.

One potential upside that Ad Age reported on last year was that ad industry turnover isn’t a true “brain drain”—employees might not be qualifying for W-2s, but because contract work is thriving again, many are leaving staff jobs for freelance. In fact, an estimated 50% of the ad industry could be freelance within the next decade.

“We see the hybrid workforce as a win/win,” says Brett Channer, founder and CEO of Mass Minority. “As we grow across North America, this gives us access to a wider range of talent representing the market we serve.” For anyone who might see an increase in various state income tax requirements as a deterrent to freelance or location-agnostic hiring, Channer notes that though “it does add cost to our payroll operation, those costs are lower than the overhead to office these people.”

Not only has the possibility of flexible work location helped current employees feel more supported and fulfilled, it has been a boon to recruitment efforts.

Since her team has become more flexible in their mix of on-site and remote working options, Sharon Tunstall, chief human resources officer at Empower, says that they’ve now broadened their scope to recruit nationally. “In the past we looked for talent in a specific market,” she says. “Now we look for talent across all markets, given that the work environment has shifted.”

“Midwest talent quickly became a picking ground for coastal agencies,” notes Linda Hogan, chief operating officer at Bader Rutter. Candidates from all over are prioritizing work-life balance, competitive salaries and, perhaps most difficult for traditional HR departments, quick turnaround and commitment. “With digital roles in particularly high demand, there’s increased competition for qualified talent, thus driving salaries higher,” Hogan says. “Candidates are weighing multiple offers, forcing us to act swiftly when we find the best person for the job.”

Kate Weiss, global HR business partner at UM, has also helped her team adjust to new hiring timeframes. “From a recruitment perspective, we’ve made excellent strides in solving traditional issues such as interview rounds taking too long, feedback being delayed or friction in the process for candidates,” she says. “This has helped us create a faster, more efficient experience for candidates and hiring managers.”

But never underestimate the value of getting to know the candidate as a person, and not just as a worker bee. “We continue to believe hiring relationships should be a little less calculated and transactional and a little more mutually authentic and respectful,” says Marissa Nance, CEO and founder of Native Tongue Communications.

This approach is supported by science. As Psychology Today reported last summer, “too many employers have developed transactional relationships with their employees that are based largely on economic exchange,” while “many employees are looking for a relational psychological contract, which is characterized by social exchange, involving mutual trust and consideration.”

“When you approach your team building by creating a community of individual thoughts, mindsets and backgrounds,” Nance says, “you are invariably able to create a cohesive and innovative collective of people.”

Addressing the internal

Beyond the nationwide realization that remote work is still productive work, there are plenty of other internal employee concerns that companies have begun addressing. Chief among them: recognizing that “wellness” does not just mean healthcare packages and gym memberships.

“Last September, we announced sweeping changes to our time-off policies and return-to-office approach,” says Elephant's Moore. “Namely, we introduced unlimited time off; an additional two weeks when Elephant is closed during the year so everyone can take a real break; 'caregiver time' for when the unexpected happens; and 'wellness time' for physical and mental health when we need it.”

And giving employees more options to manage their PTO is really just the beginning. Autonomy over day-to-day schedules and not feeling glued to a desk is also a function of wellness.

“I’ve always felt the 9-to-5, Monday-to-Friday structure was antiquated,” says Jonah Ballow, founder and head of content strategy and production at Heartlent Group. “As a business, our mantra is: Accomplish your tasks whenever and wherever works best for you as long as it delivers on deadline and the quality of your work doesn’t suffer.”

Douglas Rockhill, founder of The Experience Design Studio, agrees. “Respecting people and trusting them to manage their own time is our not-so-secret sauce,” he says. “It seems simple, but I’ve worked in way too many agencies that just don’t respect their teams’ time.”

Nurturing employee growth has also become a focal point again. A Harvard Business Review study last year found that resignation rates were highest among mid-career employees, or those in their 30s and 40s. One possible factor: burnout exacerbated by stagnation.

“Many of the studies we're seeing from the Great Resignation show that career path clarity and support are higher priorities than things like additional compensation or unlimited PTO,” says Trey Harness, president of Curiosity. “We have put more of our employees through leadership training than we ever have.”

But, as always, employee morale and retention efforts are a constantly moving target, and one that business leaders shouldn’t ignore or dismiss. “We all must continue to have our finger on the pulse of what employees are looking for,” says Two By Four’s director of operations, Becky Stevenson, “and continue to grow and adjust as warranted.”

“Folks are hungry for new experiences,” says VMLY&R’s Blandon. “Specifically, they crave meaningful experiences that help them explore their skillsets in different ways, make new connections, feel valued, and show their social network that they are a part of something aspirational.”

And to be fair, “career changers, city movers and individuals choosing to leave the industry all existed pre-pandemic,” points out Kris Tait, Croud’s U.S. managing director, “long before ‘Great Resignation’ was the in vogue term.” Still, that doesn’t mean businesses shouldn’t see changes in the workplace as barriers, especially when employees are actively appreciating these pandemic-precipitated perks.

“Hell, I live beside a ski hill and look out at a lake now next to a one traffic light town,” jokes Mass Minority’s Channer. “It’s a far cry from the shitshow traffic in the city I use to work in.”