Independent Agencies Say They're Flooded With Holding Company Applicants

Everyone is dusting off their resumes. As the economy and marketing budgets begin to return amid loosening Covid restrictions, the frenzy to hire talent is booming as shops restructure their rosters to adapt. And you may be surprised where a lot of that talent is going. Although this hiring bonanza impacts traditional holding companies and their need to regularly scoop up fresh talent, independent agencies are experiencing a rush of interest many say they have never experienced before the pandemic. “Creative people are used as fuel to feed the beast that is big advertising,” Mojo Supermarket founder, CCO and Droga5 veteran Mo Said told Adweek. “They're used until they become bitter, jaded and practically useless. Nobody develops or nurtures their talent. That's why we're losing the best of our talent to other industries.” Sick of bureaucracy Creatives are tired of having their hands tied by outdated systems. “They are sick of the bureaucracy where they can’t be agile enough for the solutions that are right in front of clients,” Schiefer Chopshop (SCS) founder, CEO James Schiefer said. “They want to be able to think holistically [and] to be able to pull off ideas across disciplines. They also want to make a mark in this world. They want to make a difference, and they want to have fun. On top of that, they want freedom." [Creatives] are sick of the bureaucracy where they can't be agile enough for the solutions that are right in front of them.—James Schiefer, CEO, founder, Schiefer Chopshop Covid accelerated negative feelings about restrictive work environments, to the benefit of smaller shops offering more flexibility. KSV Agency, with offices in Vermont and New York, has increased its staff by about 25 percent during the pandemic. “Trying to find a highly qualified account person right now is like trying to buy a home in the hottest real-estate market,” KSV partner and CEO Erin Fagnant said. “People are being poached; they are receiving multiple offers. Our recruiter recommended to us that we move quickly to not miss out on the best talent. We had multiple candidates drop out because they got offers from other agencies while we were interviewing.” Getting their hands dirty The pandemic put a premium on adaptability, and independent agencies can move without layers of approval. “They can invest in clients, put people over profits, take the long view on talent and collaborate at will,” John Harris, CEO of independent agency network Worldwide Partners, said. “And it’s critical when more clients are asking agencies to help reimagine their brands and businesses.” New York indie shop Terri & Sandy has also noticed an influx of resumes from companies such as 360i, Grey and McCann. “Brands are coming out and spending again, looking to smaller shops who they can build true partnerships with,” Terri & Sandy CEO Sandy Greenberg said. “People want to dive back in and collaborate, they want to get their hands dirty, and they want to feel like family again—and these are all things independents offer by nature.” Burned-out survivors This move to independent agencies is partially driven by burned out “survivors” that worked 40+ hours per week despite taking pay cuts as they attempted to salvage their jobs at high-profile status shops. They're now seeing hire new talent at higher salaries and generous perks. “As an independent agency, we put a priority on collaboration,” said Jeff Larson, president at independent media agency Mediassociates in Sandy Hook, Conn. “Another new employee we hired from OMD told us that at OMD, she sat next to a coworker on another account and never shared ideas about what they were working on. Here, she says, everyone shares ideas.” Prospective employees are looking for a place that allows for great creative work guided by their social conscience, Nick Paul, president of Chicago indie O'Keefe Reinhard & Paul (OKRP), said. Most holding companies are beholden to their shareholders. … People are the chess pieces, and some get taken off the board.—J Barbush, RPA creative veteran Likewise, Mojo Supermarket is attracting a “diverse group of people that don't belong in a room together, and instead of morphing them into the same creative, we build a structure that allows them to grow as themselves,” Said commented. “People come to Mojo Supermarket because they're junkies of thought. Our people aren't the fuel. They themselves are the fire. The fire that clients come to us for.” Commitment to diversity, equity and inclusion While many holding companies have made pledges to diversifying their workforce, smaller shops can make more significant changes in the short-term. “All of our recent hires in the last six months—eight new employees—have called out the diversity in our executive leadership team as a proof-point of our commitment to DE&I [diversity, equity and inclusion],” OKRP’s Paul said. “What you stand for, what actions you take and don’t take, the voice of your employees and the overall culture of an agency are larger factors today than ever before. People want to feel that they are in a safe environment ... both physically and emotionally. Providing that today is really the cost of entry.” Although remote work is an attractive advantage, hiring managers outside of major cities are also seeing applicants attracted to local agencies offering connections to in-person community. Jacksonville-based St. John, for instance, convinced Huge veteran Austin Mahler to relocate from Brooklyn to her native Florida town for an executive position. People are the chess pieces, and some get taken off the board “Most holding companies are beholden to their shareholders,” says J Barbush, a creative veteran who was let go after 23 years from RPA, one of the largest independents, during a restructure. “The market is so volatile and driven by emotions, so when holding companies are faced with a grim outlook, they react accordingly to preserve their bottom line. People are the chess pieces, and some get taken off the board.” Barbush has since teamed with fellow advertising veteran Luis Ramirez to launch Cast Iron LA, an agency specializing in digital, social and creative marketing. Notably, in an industry seemingly obsessed with youth, Cast Iron LA is embracing the experience of its senior team; both founders and a number of other staffers at the new agency all proudly embrace their “over 50” status. “This is a golden age for the independent agency for both clients and employees,” Larson said. “We are seeing employees attracted to our truly unsiloed approach. One employee we recently hired from a large holding company said she was getting pigeonholed into narrow media channels, but that she came here and moved from local spot into national broadcast, then Upfront and DRTV. The ability to grow your career and learn and expand is very important.” How Agencies Are Addressing Ageism