Retaining Culture
Agencies, like every other business that survived the pandemic, embraced remote working. But now many agency leaders feel that communication, collaboration, and training—while manageable—are more challenging in a hybrid or remote workforce. Fostering creativity, innovation, and agility can be even tougher.
The work-from-anywhere phenomenon is a double-edged sword for agencies: It provides access to a bigger pool of talent, at a potentially lower cost but struggles to foster a sense of camaraderie and belonging to the entire workforce.
Improving Operations
Despite making progress in digital transformation, many agencies still have to automate processes, digitize their back offices, and integrate their operations. Clients noted that agencies may have moved from pitch books and storyboards on easels to PDFs and slides, but very few have digitized their workflow and interaction.
At the same time, clients are placing significant operation burdens on agencies via information security and cyber insurance policies that require additional technical, legal, and operations investment. This is also happening while clients are tightening—or at least scrutinizing—budgets, thus squeezing agencies from both sides.
Maintaining Equitable Budgets
Even if the world avoids an intense economic decline, agencies are already feeling the pinch. A July 2022 study by SoDA found 48% of agencies said they’d had success increasing client budgets but that billing rates had not kept up with salary and benefit increases. In the 2008 recession, some of the world’s largest companies bullied agencies into hefty budget decreases or significant extensions of payment terms. After the bruising agencies experienced during the pandemic, it is likely that many would struggle to survive should clients behave the same way during a near-term economic downturn.
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