The Great Resignation is an Age-Old Problem.
The great resignation has been front and center in our industry for some time now. It was tough retaining talent before this phenomenon took hold, and now it’s a number one challenge.
One study says nearly half of marketing professionals (48%) have considered a career change. Sure, you can offer better pay and flexibility, but the reality is, people are just burning out. Some predict that an estimated 50% of the ad industry could be freelance within the next decade. As you can imagine, it is quite difficult to build long-term client relationships with freelancers.
On the other side of the coin, ageism is alive and well in advertising and has been so for some time. It only worsened during the pandemic. There is a lack of age diversity among those who are actually creating the ads. The median age for a manager in America's advertising agencies is 37, and the average age of a creative person in the industry is only 28.
Ironically, boomers control 70% of the country’s disposable income, outspending every other generation by $400 billion annually and providing over 50% of U.S. consumption. To focus on Gen X, Gen Z, or millennials at the expense of anyone older is simply bad for business if you are not inclusive and pulling great ideas from everywhere you can.
Ad veterans say the issue stems from a short-term focus on keeping costs down, chasing the trends, and targeting young consumers who may not yet have established brand loyalties, though they have little buying power.
Most big advertising companies haven't directly addressed ageism; otherwise, we would see a lot more 50+ folks working. The biggest agency-holding companies have grown more transparent on matters of race and gender, but age largely remains a blind spot.
One can argue that a seasoned executive might have more success managing clients, as client relationships can make or break an account. You must be their trusted partner and problem solver. Experience is your advantage. The seasoned executive not only engenders themselves to the client, but they can also become mentors to the younger employees. I would not skimp on investing in seasoned talent in order to save money. In the long run, you will come out ahead financially because you’ll be able to retain your clients longer and grow their business.
It's time to rethink hiring practices again and invest in seasoned executives. Yes, you might pay more in the short term, but the benefits will outweigh the negatives. Given current open headcounts that agencies face and the challenge in finding the right talent, you may never meet your goal of becoming fully staffed. Divert some of those funds allocated to staffing to afford more seasoned talent. This strategy will reduce your open headcount and support this age group which is actively still in the game. You will then experience improved client retention, and it will ultimately pay for itself.
In support of these issues, ThinkLA, the preeminent media, marketing, and advertising collective with a mission to connect, inspire and educate the West Coast marketing community, has launched an initiative called Gray Matters. ThinkLA’s mission is to connect and inspire the regions’ marketing community. They bring together creators, buyers, and sellers and help their members stay ahead of the curve and prosper in the rapidly evolving advertising ecosystem.
Gray Matters was conceived by ThinkLA as a consulting firm that connects experienced marketers with companies/organizations that need help.
Gray Matters is for startups or small companies without marketing teams; organizations who do not want to staff an FTE-based marketing team full time but know they need help; companies who need interim roles filled while they hire full time; companies who need part-time help and guidance; and companies that have a project requiring extensive experience and expertise.
This team comprises seasoned advertising and marketing professionals, and more are being recruited. We believe that other advertising organizations should adopt this concept to support this target group.
Let’s improve our marketing strategy to help counter the great resignation. It’s a win/win for everyone. And let’s franchise the Gray Matters Consultancy around the country to bring enhanced value and service to our clients.
Zach Rosenberg
Zach Rosenberg Consulting, Inc.
Founding Partner, Gray Matters
