The only way for agencies to survive the death of sweatshop culture is to not run a sweatshop in the first place
So, my co-founder Nathan shared this email with me the other day:
WTF.
The email came from a timesheets systems vendor, wanting to sell us a system to help us stop “leaking” billable hours. The tone is indicative of a big issue plaguing the agency business today — the idea that employees are basically resources, and that each individual represents a potential set of “billable hours” walking around on 2 feet. If they’re not billing out every possible hour of the day, they’re not making the agency money.
Services firms typically run a simple business model that involves hiring at one cost and billing out at a greater one. So the lower the cost, the higher the margin. As a result, agencies tend to hire young people. Partly because of the energy and fresh thinking that comes from youth. And partly because they work hard and they’re cheap.
For those who just graduated from school, agencies have historically been held up as a fun place to work. And an opportunity to leave your mark on some of the worlds’ most famous brands.
The young Jedi
I felt this way when I graduated in 1999 with a marketing degree. Even before I knew what marketing or advertising was, I knew I wanted to be a part of it. I grew up in a household with 3 other siblings and working parents. So I consumed a liberal dose of television. I can distinctly remember being fascinated by the commercial breaks. There was no Tivo back then, and thus no ability to skip the commercials. I loved hearing about new brands, products and flavours. I memorized the slogans and the jingles. Each commercial was a 30 second piece of entertainment, and I ate them up one after the next.
My friends grew up being investment advisors, doctors, and UN workers. I grew up wanting to make brands — whatever that meant. And so, six interviews later, I was pleased when I landed my first job as a coordinator at a local digital agency.
I learned the business from the ground floor. Despite my naivete, I was endlessly curious. I asked questions. I read up. I asked for extra assignments and I pulled late nights and weekends. The agency was by no means a sweatshop, but the nature of the work and my role (managing pitches) demanded extra.
But I loved the work and I still do today, which is why — despite the roller coaster of demands that’s so typical to this business — here I remain.
What keeps me here 16 years later? I love the challenges, the variety and the constant newness. And I especially love the people. Which brings me to the point of this article…
If the agency business is fundamentally built on the backs of good people, then agencies need to stop treating their employees the way the unnamed timesheet system vendor above seems to think they should.
If this practice doesn’t stop, this industry will cease to be relevant.
Today, employees have a lot of choices. A variety of technology companies, start-ups, in-house teams, consultancies, and the lure of freelancing, are all options for the same talent pool —and agencies are still competing for talent in old ways.
Today I’m the co-owner of an agency. And I know full well that if we want to the best talent to work for us, we:
- Can’t just offer vapid perks.
2. Have to start by respecting peoples’ time.
3. And we must pay people a fair wage.
4. We must try extra hard to do all of these things because we work in a very expensive city.
It’s up to agency owners to raise the bar and build a better business. To create something that smart, ambitious people want to be a part of, we need to respect their time and compensate them fairly.
At Modern Craft, we run a responsible business. One that is powered by smart minds and good people who love to solve problems for a living. Timesheets don’t govern our business. Hours are flexible. Salaries are competitive.
Simply put, I am trying to build the kind of company I would want to work for. For the good of our industry, I challenge my fellow agency owners to do the same.
