Marketing Procurement and the Global Talent Crisis

As the global talent crisis continues to bite, organizations the world over seek to find ways to, not only attract fresh candidates to their industry, but also ensure staff shortages in periphery businesses don’t have a negative impact on their own operation.

When discussing the talent crisis, it’s all too easy to become increasingly myopic and focus entirely on your organization’s ability to carry out its core function. However, we mustn’t forget that shortages in companies which ours relies on will also have a domino effect down the value chain.

Marketing procurement is not immune to this phenomenon and savvy brands need to be hip to the ways shortages are affecting the agencies it relies on and doing everything it can to mitigate the damage.

Agency Shortages

Advertising agencies have reported that average junior salaries have risen by up to $20,000 dollars over the last year and they are being outbid by over $50,000 on average on salaries for the best candidates. When you consider how many people an agency needs to operate effectively, it’s easy to see how this creates an unsustainable cost increase which many brands are unable to absorb.

This means those same agencies are unable to provide the level of agility and expertise the modern marketing procurement client is looking for.

According to recruitment intelligence brand, Zippia:

• The average cost per hire is $4,425.
• It takes 36 to 42 days to fill an average position in the United States.
• 15% of Human Resources expenses are allocated towards recruitment efforts.
• It costs up to 40% of an employee’s base salary to hire a new employee with benefits.
• 63% of hiring managers and talent acquisition specialists report that AI has positively changed how recruiting is handled at their company.
• It takes, on average, 12 weeks for a new hire to become fully productive at work.

Which all conspires to further compound the talent crisis, the pool of candidates available to agencies, and their ability to serve the marketing procurement teams further down the value chain.

New Models to Address the Crisis

In order to continue operating at maximum efficiency while dealing with the talent crisis, advertising agencies are adopting new models of business which seek to address inefficiencies, break down siloes, and provide clients with the best experience possible under the current circumstances.

Marketing procurement teams need to factor these challenges into account when chosen agency models and operational strategies and need to be prepared for frank and open conversations with agencies should they feel the level of service has dipped below an acceptable threshold.

Working with brands which have a global agency of record means having a transparent view into that company’s turnover, hiring practices, and policies related to intellectual property, privacy, and security, which will provide you with the data you need to make an informed decision about that agency’s ability to provide you with the level of service you require over time.

Regional hubs can be particularly vulnerable to resignations – especially those without a stable mid-level. Marketers need to ensure they are securing account expertise in key offices and that senior leadership is sufficient to motivate employees and effectively oversee the work being carried out.

Independent agencies are now better able to compete as younger generations enter the workforce. These demographics tend to be more anti-corporate and prioritize factors such as to what extent a company’s values align with their own when choosing an employer, which means independents which make them know can attract top young talent.

Marketing procurement teams need to ensure they are shopping around when it comes to the agencies they choose to do business with and discover in which direction the best talent is gravitating. The landscape is constantly shifting as well, which means what hold true one month may no longer be so the following.

This is why data and metrics must be at the core of agency selection. Numbers don’t lie and by keeping constant attention on where trends are shifting your organization will be able to select the best agencies and those which have access to the talent they need to offer the best results for your brand.

Final Thoughts

The global talent crisis is only going to grow moving forwards and marketing procurement teams need to make sure they are, not only keeping their own house in order, but gazing outwards as well. Only by doing so can they ensure the best results for their expenditure when purchasing advertising from external agencies.

The global talent crisis is certain to be a hot topic at ProcureCon Marketing 2022, taking place in November at The Westin Rancho Mirage Golf Resort & Spa, Palm Springs, CA.

Download the agenda today for more information and insights.