Hadden report puts figure on cost of agency ‘hire and fire’ culture and calls for more flexible working practices
A piece of research on flexible working commissioned by the IPA and carried out by Niall Hadden of WCRS in March 2003 suggests that the agency ‘hire and fire’ resourcing model has on average cost a large agency £2.5 million over a two year period (2001-2002).
The report, available to IPA members only, also highlights:
- that there has been very little outsourcing to date in either the core or support functions within the industry
- that there is a ratio of over 3.5 to 1 of large agencies that consider the use of non-permanent employment to be a reactive solution to unanticipated workload rather than a strategic approach to managing human resources (this is 2 to 1 in small to medium sized agencies)
- that in large agencies 92.5% of people are employed on a full-time permanent contracts, 2.5% on part-time contracts, 1% on outsourced contracts, 4% on non permanent working arrangements which suggests little strategic interest in developing ‘atypical’ types of employment
Said IPA Director General Hamish Pringle: “We know that redundancy has been a major concern for the last two years. Time and time again client defections, financial pressures, often short-term, and the need to keep up group margins on a quarterly basis have forced hard decisions. The cost of course is not just financial. Established teams are broken up, families affected and the stress levels of both those going and those remaining in the agency are raised. Valuable business knowledge also walks out the door and may be difficult to replace. Hadden suggests that the use of alternative resourcing models needs to be seriously considered - e.g. short-term, part-time or freelance contracts and the outsourcing of non-core functions. We believe this report to be a wake-up call for the industry.”
The Hadden Report, which was presented to delegates at the IPA HR Conference in March 2003 has also been circulated to IPA member agency CEOs for their views.
This members-only report, is entitled EMPLOYMENT FLEXIBILITY IN THE UK ADVERTISING INDUSTRY.
Last updated 26/07/2010