Over forty percent of employees at HoldCo Agency express desire for departure, according to a new survey.
The state of affairs at ad agencies, particularly those under major holding companies, is far from rosy. Job losses, mergers, and advancing AI technologies loom ominously, casting a pall over employee morale.
One agency employee, a cog in the holding company machine, put it bluntely: "Upper management ain't got a clue about the struggles of us regular folk." This sentiment is echoed in a recent ADWEEK reader survey, which indicates that employees working for heavyweights like IPG, WPP, Havas, Dentsu, Publicis, and Omnicom mostly feel downbeat.
A sea of uncertainty grip the industry. Major players like WPP and Omnicom have shown no hesitation in slashing heaps of jobs, leading to widespread panic about the future. This anxiety doesn't just impact the axed employees but their support networks and local communities as well, thanks to the emotional and financial baggage that comes with layoffs.
Industry consolidation is another factor chipping away at employee morale. The number of ad jobs in the US has dipped by a daunting 4% since April 2023. Redundancies and mergers have steadily eroded trust in leadership, making it tough for companies to hold onto workers who feel valued and secure.
Then there's the specter of AI, which is raising hackles due to its potential to automate roles. This mounting fear of being out of work is exacerbated by the rapid evolution of AI, which demands employees to constantly sharpen their skills to stay afloat.
Despite these challenges, the emphasis on employee experience, mental health support, and fostering a positive culture is increasingly important in the industry. Companies that invest in these areas are better positioned to retain top talent. However, for many of the major holding company agencies, the ongoing layoffs, AI-driven upheaval, and the feeling of being ignored by leadership continue to weigh down morale and drive high turnover rates.
In essence, betting on job security, mitigating the effects of AI-driven displacement, and bridging the leadership gap are the keys to improving morale and employee retention in ad agencies under major holding companies.
- In the face of ongoing layoffs, advancements in AI technologies, and uncertainties within the major holding company agencies, many employees express concerns about their careers and financial stability.
- Despite the challenges, prioritizing employee experience, mental health support, and positive culture could potentially improve morale and reduce turnover rates in the ad industry, but addressing the concerns of employees about job security, AI-driven displacement, and lack of leadership recognition remains crucial.
