Over the past 2 years, advertising agencies have been dumping people at an alarming rate. in many cases pink slips were flying by the thousands over the course of a day at some of the larger firms.
But now you have a problem, if the recovery does take place, how exactly are these firms going to cope with additional work load? For me it takes a full year before the time I hire someone and they actually are productive. Granted we’re not a traditional advertising agency and employees here are most likely far more trained for their jobs, but the end result is the same.
You just can’t hire 100 people to throw at a big account and expect it to work right away, it will take months at a traditional firm, or about a year at a firm like Yooter before those employees actually contribute to the company as compared to just drawing a paycheck from it.
To compound the problem most advertising agencies are working at a reduced staff currently, so training isn’t from the 10 guys around you, it’s from the 3 guys around you. IE: a bunch of skillset was lost during those layoffs.
Companies now expect to just hire an agency and have it ‘handle everything’ but in reality these agencies can’t handle anything yet, they don’t have any staff to do it.
Watch service degrade over the course of the next year for new clients.