A crisis of leadership in digital and design agencies.

There is an ever increasing instability within agency workforces. There are fewer permanent staff, more freelancers and interns. A record number of people are intending to change job within a year (59%). This year almost half of respondents (49%) have been with their agency less than two years, so it appears that unhappy employees are following through on their intention to change job.

A substantial change in those responsible for the day-to-day client relationships and client satisfaction may have an impact on the agency’s ability to service and farm existing clients, as well as to seize new business opportunities as the market begins to pick up. The resulting churn means agencies are spending precious budgets on recruitment fees and investment in getting people up to speed on their way of working and building staff knowledge of the agency’s clients.

This makes clients nervous that the ‘A’ team pitched but an unstable or more junior ‘B’ team are delivering. And feeling like you aren’t on the ‘A’ team is demotivating, giving employees another reason to consider leaving.

The movement of people between agencies can make or break reputation through word of mouth. This is increasingly true as a growing number of respondents are using social media to talk about their professional experiences (34.6%, up from 18.8% in 2009).

Respondents perceive a crisis of leadership. For the first time the perceived delivery gap is widest for ‘has a management team that demonstrates strong leadership skills’ (-53.1%). Part of the issue is that owners have a rosier view of agency performance than their staff. Staff complain of inappropriate staffing levels, a lack of strong sense of teamwork throughout the organisation, their ideas and opinions not being valued, and they are not being rewarded for going the extra mile.

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