The search for the irreplaceable workforce: Reflections on 2024 and what’s coming for 2025
2024 has been a tough year for agency talent. Will 2025 be any different? Deanne Constantine, founder of talent consultancy Blue Bateau, explores.
2024 was an incredibly tough year for those working within our industry’s agencies.
While we saw the birth of many new start-up agencies and a surge for freedom and independence, some of the new offerings were not a sign of market growth but simply a case of talent being fed-up and wanting to take matters into their own hands.
The market retracted and was active in project work, which didn’t feed established agencies or our freelance talent pool as consistently as previous years. Overall, talent dispersed and felt somewhat disconnected, still pondering the question of ‘where to next for me? Is it out of the industry?’.
On a positive note, the agency clean-up is well underway with big cultural movements moving the needle on gender bias and ageism.
Specifically, in 2024 we saw a number of key trends, including:
The Industry Retracted
The market retracted in 2024 primarily due to economic factors, reduced client spend, consolidation efforts and the introduction of tech and automation. The retracting market saw frequent redundancies across the year, and resignations were often not replaced with new resources, or in some instances, if they were replaced, it was with a more junior, cheaper solution causing senior talent to wear the brunt.
The Market Segregated
Global and client consolidation saw the market segregate. For example, network agencies were awarded for BAU work, while some clients put the high-level creative work into smaller bespoke or independent offerings. The project work didn’t allow agencies to resource for the long-term, however it was positive in positioning the advertising industry as the custodians of strategy and brand.
Talent Dispersed
The shrinking market has continued to disperse talent across the wider market which has played a pivotal role in the overall sense of disconnection felt across the industry. Globally we are experiencing talent uncertain of where the heart of the industry sits and they are craving open connection and the camaraderie that they are accustomed to.
Industry Cultural Shifts Are Well Underway
The segregation between new and old agency approaches and culture is now apparent. There’s a rebirth underway; agencies are tidying house and making sure that their talent pool is across new ways of thinking and approaching business solutions.
The trends seen are likely to continue into 2025, with a few other considerations at play.
Agency Employers Will Regain Power
During and immediately after Covid, talent held the power often making demands for salaries and benefits not seen before. But now that agencies have ‘cleaned house’, and are clear on what they need, they are in the driver’s seat and are getting very picky about the kind of people they want to hire.
Talent will need to realign with the new market and most likely, part ways with salary or flexibility demands as the market has now shifted.
The bleed to client-side will stagnate in Creative & Strategy – Driving Project Model
In-housing has proven to be problematic in terms of developing senior creative and strategic capability, only succeeding in single verticals, ie. Marketing & Brand function. Building in-house teams from the bottom up has proven difficult with a lack of talent at senior level. The strength of agencies to provide senior strategic and creative thinking is more apparent than ever, and this will support the project model we are seeing develop in the market.
Agencies Push Back on Pitching
It’s likely that more agencies will be putting their foot down on the pitching process. Too many pitches with too many agencies at great expense is not sustainable for an industry that’s still hurting from ongoing economic headwinds. As a result, we’ll see agencies become more empowered and confident about what they will or won’t pitch for and under what conditions, as they focus on what’s manageable within their new structures and talent base.
Agencies To Focus on Competency Framework
As agencies manage tighter margins, more emphasis will be put toward their competency framework. This looks at what resources the agency has, versus what it needs to drive growth. Agencies will evaluate their current state versus their future state and make necessary changes around resourcing to drive greater efficiencies and output.
While 2025 could continue to be another tough year for agencies as they move through a tough economy coupled with the deeper introduction of automation and tech, cultural shifts are well underway. The agencies that put increased efforts into their operating models and frameworks, drawing on efficiency and scalability strategies are likely to be the ones to pull ahead. It is also likely that the project model will continue to grow for agencies, further strengthening the industry’s strategic and creative power.
Talent who are agile, hungry, entrepreneurial and future facing with impeccable professional and personal values are set to win in 2025 as our industry looks to embed an irreplaceable workforce to drive them forward.
Deanne Constantine is the founder of Blue Bateau.
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