Creative Agencies 26.03.24

Understanding the Creative Shift: What’s Driving Talent to Independent Agencies from the Corporate Giants?

At Harmonic, we’ve recently seen an increasing number of candidates shifting from larger network agencies to smaller independents. While there are plenty of reasons behind these career moves, many individuals reference a lack of progression, company culture, and growth plans as motivating factors.

Understanding the Creative Shift: What’s Driving Talent to Independent Agencies from the Corporate Giants?

At Harmonic, we’ve recently seen an increasing number of candidates shifting from larger network agencies to smaller independents. While there are plenty of reasons behind these career moves, many individuals reference a lack of progression, company culture, and growth plans as motivating factors.

However, it’s not just employees that are embracing the idea of independent agency life - in some cases, major clients are also following suit. Independent agencies are consistently proving their ability to compete with established networks, landing big accounts that may have previously flocked to larger organisations.

While networks tend to lean on their extensive resources and long-standing relationships, independents are offering a sense of creativity and flexibility that’s appealing to many candidates and clients alike.

London in particular has seen a huge rise in the number of successful independent agencies - businesses such as House of Greenland and Favola all employ less than 30 people, but have secured some huge accounts on their books.

But why are so many workers making the leap from networks to independents? And what are some of the potential advantages and drawbacks that come with this transition?

Let’s take a closer look at this growing industry trend, and examine why independent firms are flourishing in the modern agency landscape.

What are some examples of big clients switching to independent agencies?

Many network agencies have maintained long-lasting relationships with huge clients - but with the surging popularity of independent agencies, some of these established relationships are being heavily disrupted.

For instance, in 2021, a four-year relationship between WPP and British Airways ended after the airline moved its creative account to Uncommon Creative Studio. British Airways cited a ‘strong differentiated creative proposal’ from Uncommon as a deciding factor in the process.

This isn’t the only notable example of independent agency success, either. House of Greenland, another small firm, has retained a significant portion of Google’s business for several years. Milestone Creative, on the other hand, recorded 75.4% organic revenue growth in 2021 with a team of just 21 people.

Independent agencies may traditionally have been associated with smaller accounts and billings, but this is no longer the case. These firms are now going head-to-head with large networks, and regularly coming out on top - something that’s undoubtedly convincing many workers to make the jump to the world of independents.

The potential benefits of joining an independent agency

There are many reasons why candidates are keen to join independent agencies, but let’s highlight a few of the most compelling benefits that smaller firms offer.

They can establish a clearer pathway for progression

Many workers find larger agencies to be too ‘top heavy’ in terms of staff, which limits opportunities for career advancement. Established networks frequently recruit a high number of senior managers into a rigid company structure, which means account managers/senior account managers can struggle to progress quickly to the director level.

Independent agencies, on the other hand, often adopt a more flexible and ‘flat’ business model. There’s less emphasis on a traditional team structure, which presents far more opportunities for promotion and lateral movements.

There’s a strong emphasis on positive workplace culture

A lot of independent agencies also place company culture at the heart of their offering, with a clear focus on maintaining ethical business practices and fostering a diverse workforce.

For example, many smaller agencies are striving to become B-Corp certified to prove their commitment to sustainability, employee well-being, D&I, and social responsibility. This can be hugely appealing for candidates looking to work for an agency that aligns with their personal beliefs.

Employees can make a direct impact on the business

While independent agencies can’t compete with networks in terms of sheer resources, they can offer staff the opportunity to make a direct impact on their clients.

It can be difficult for workers to stand out in a network agency, simply due to the number of staff that are employed. However, at an independent firm, individuals can find themselves working very closely with their clients and having a tangible impact on their accounts - not only is this great for job satisfaction, but it can also help people to receive the recognition they deserve from managers and business leaders.

This is particularly true for early-stage start-ups, where employees can directly contribute to the future success of a company and help to build a business from the ground up.

There is room for creative thinking and innovation

Independent agencies also tend to encourage more creativity and outside-the-box thinking from their workforce, which can be a massive bonus for some candidates.

While networks tend to stick to fixed guidelines and procedures that help them to run a well-oiled machine, independents need to leverage big ideas and innovative campaigns to stand out from the crowd.

Ultimately, it’s the flexibility, adaptability, and culture of independent agencies that allow them to thrive in an industry that’s constantly shifting. This is also what makes these smaller firms so appealing to many prospects looking for a different working environment.

The potential drawbacks of joining an independent agency

However, independent agencies aren’t necessarily well-suited to every candidate, and several potential drawbacks may deter people from making the transition.

Smaller budgets can feel restrictive for employees

Working with smaller accounts can be difficult sometimes, particularly for ex-network employees. It can be tricky to stand out and deliver eye-catching campaigns with a modest budget, which can make it harder to make a strong impression on management.

Company growth can also feel slower sometimes at an independent agency. While some firms will land a game-changing account that transforms the business, others will need to steadily build up revenue and growth opportunities with smaller clients.

A lack of rigid structure can be a negative for some people

Although the rigid company structure of networks can feel restrictive and frustrating for some candidates, for others, it can offer a sense of consistency and reliability.

Not everyone will enjoy the more flexible structure of independent agencies, and some people may prefer to climb a more predictable and conventional career ladder.

International marketing opportunities can be limited

Candidates looking to work on international campaigns may find that smaller agencies are limited in this department, often working from a single location. Although independent agencies may push for more creativity, they don’t always have the logistics in place to manage global campaigns across multiple countries.

(However, this certainly isn’t always the case - RPM, for example, are currently working between the USA/Africa to film Diaego commercials!)

Job security and stability can be lacking

Finally, the unpredictable and mercurial nature of independent agencies isn’t always a positive for candidates. Smaller firms can’t necessarily offer the same job security and stability as larger agencies, particularly if they’re heavily reliant on a single account.

Independents may also struggle to match the benefits packages offered by their network counterparts, which can be a deciding factor for some candidates.

As independent agencies continue to build diverse cultures, create exciting job opportunities, and secure big accounts, more and more candidates will likely consider alternatives to established networks.

While household names such as Ogilvy and Hogarth will always be appealing to creative talent, as smaller agencies evolve and carve out their own space in the industry, it might not be long before they’re also recognised as iconic names for clients and candidates alike.

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