Recession and agencies

Every day I read the papers of companies managing recessions. There seem to be fundamentally two ways.

1. Reducing time on the business. So people are laid off. Asked to go on leave. Go for training. etc

2. Reducing costs : Besides cost savings by the above moves, people taking salary cuts.

Got me thinking about my own particular situation. And brief chats with others in the same business revealed similarities.

Essentially what I noticed is that

Environment gets tough

Clients cut spends : media and agency

Now agencies have a choice..cut people or cut costs. (as explained above)

The cutting people bit is what I find challenging, because in a recession clients have to work doubly hard to meet their targets. This usually results in more work for the agency.

Besides clients are looking for ‘innovative’ thinking that will help their business during the tough times.

So all I see is more work. And reduced fees of course.

Cutting staff in agencies is really a last resort, done purely to stay in business.

Else it is the ideas that keeps the business going. And for ideas we need people.

It’s not easy being an agency in a recession is it.

Yet we all enjoy it!!

Must be insanity.

Harish

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