Lots of hands

In the world of digital marketing, time is a precious commodity. Our clients pay us for ours, and we pay our employees for theirs. This is why your approach to human resources (HR) is a big deal in the wake of the COVID-19 global crisis and the effects of the resultant economic downturn. As a digital agency, you have to ask yourself the following two questions:

  1. How can I conduct my HR processes more cost-effectively; and
  2. Where I have HR as a fixed cost, how can I facilitate transition into a variable cost?

In this blog, we address both of these questions to help you navigate the human capital aspect of the times we find ourselves in. Pay attention, as this may contribute towards saving your business.

The Challenge Of Having Your Wage Bill As A Fixed Cost

In the Western world, labour laws generally favour employees more than they do employers. This can leave you in the precarious position of weighing the cost of keeping permanent staff you can’t afford versus opting for a more flexible employment model.

A considerable number of big agencies have fallen on tough financial times because of the size of their wage bills. In addition to this, the agencies themselves are losing major clients because their clients are also taking cost-cutting measures. With reduced revenue and fixed costs remaining, the wage bill becomes too expensive to sustain.

Outsourcing: A Flexible Solution To The Rigidity Problem

Now, in order to save jobs, digital agencies may have to free up room for movement where finances are concerned. This is really critical. By using the services of independent contractors or outsourcing some of your functions, you gain control over how you work around delivering on promises to clients without over-stretching your budget.

According to Managing Director, Damian Papworth, “At Globital, we do outsource as part of our model. That’s the obvious option. This is one of the ways we support digital agencies. We give them the option to vary their Human Resources to match the variation of revenue in their businesses. It’s pretty simple.”

The key lies in moving away from conventions towards creative solutions. At the end of the day, keeping your doors open may mean you have to open up your mind about how HR in a digital agency works.


Book in a FREE 30-minute strategy session with one of our digital agency experts to claim a $1000 voucher to try out our services, risk free!

During Our Call, We'll Discuss:

- Your Agency Goals

- A Plan For Reaching Them

- Our Pricing And Process

- A $1000 No Strings Attached Voucher To Try Out Our Services

Recent Posts