The Crisis within the Crisis

The global economic crisis is front-page news everyday and will be for some time. It’s arrived here! The Spanish economy is slowing down as with many other parts of Europe.  History tells us that this is cyclical and therefore we should be thinking about battening down the hatches and weathering the storm. Or should we be doing more? Is now the time to ‘think outside the box’?

As if one crisis were not enough, there exists a ‘crisis within the crisis’. This relates to the way in which some companies, particularly agencies are structured and it’s a storm that has been brewing for a while.  I often ask the Director Generals that I meet from advertising and branding agencies and Marketing Directors in companies in Madrid and Barcelona, both large and small, a very emotive hypothetical question;
“Imagine if you could fire all of your staff today, with no fear of legal, financial or psychological damage or retribution, how many of those people would you re-hire tomorrow?”

This is a really tough question that they struggle to answer in the good times, let alone in the challenging times we face today. Whereas in the good times workers are evaluated on their overall contribution to the company, in the bad times, these strengths and weaknesses often become irrelevant because there is just not enough work to be done. In non-asset based companies like agencies the human capital asset is the fundamental ingredient not only for success, but also survival.

As we have seen in the financial sector, institutions that we had previously considered unbreakable and with whom we put not only our trust in, but also our money into, the banks, are collapsing and being snapped up at bargain basement prices. In some cases, but not all, the national governments are propping them up. This has lead to redundancies, repossessed homes, heartache and the knock–on effects sooner rather than later affect marketing budgets and advertising spend and consequently the agencies where it hurts; on the bottom line.

So back to my question; how many people would be re-employed? 100% of them, 75%, 50%, less!! What is stopping a reduction in workforce at all levels?  How do we evaluate who should be the first to go?  Is it a ‘last in, first out’ policy? Well of course a number of criteria for letting people go exist, none of them particularly pleasant for the person being fired or the person doing the firing. One factor seriously affecting this decision making process is the related cost of firing someone. Is the pay-off compensation too much to consider firing someone?

This is the ‘Crisis within the Crisis’. Some agencies had their hands tied at group level when a merger of two agencies or an acquisition occurred. Workers were employed within the new structure and brought their work service (antiquity) with them.  There were often two senior people for the same role, which is ok in times of feast, but proves untenable in times of famine. This combined with people progressing up through the agency in until relatively recently good times means that many do not have a spread of experience through the agency.

So what do agencies do to compensate for this top-heavy, ‘too many chiefs and not enough indians’, structure; an inverted pyramid that teeters precariously on its apex waiting to come crashing down? Add in some lower paid workers, very often interns (becarios) to balance the books and keep the wage bill in check. As a fire-fighting, short-term solution, this has great appeal and a certain degree of success. However, where are the mid-level people within the agency?  Are the juniors often given too much responsibility and the senior people asked to do work that is at a level below where they want to operate? Do juniors really doubt that they will ever bridge the gap to become a senior; particularly when they see that the mid-level harbour has been closed for some time?

The answer to all of these questions, having spoken to countless candidates and clients in Spain, sadly is a resounding “yes”.  This situation can and often does lead to an unhappy and de-motivated workforce. Many candidates tell me that the glamour has gone from advertising; longer hours, later nights, more free pitches and stifled creativity. No work/life balance! This leads to a lack of loyalty from workers, particularly juniors, who are prepared to jump ship for the slightest reasons. ‘One stop closer on the Metro’ or ‘Algo mas en mi bolsillo por mes. Algo!’ are not what candidates’ career decisions should be based on; however they have been given as reasons for change. Needless to say, these are not the type of candidates we look for and work with. Would it surprise you to know that one a common desire is for agency people who contact us to want to move client side?

This lack of balance and morale within an agency, and by no means do I hear that all are like this, leads to internal stresses and cracks that can be papered over in bountiful times, but can deepen and widen in times of pressure or even worse crisis. I am certainly not suggesting that workers should be fired and if they have to be, they deserve the compensation they are due. However, is it perhaps more cost effective in the long term to ask someone to leave? Companies need to look at plugging some of the gaps that exist with their existing workforce to help balance the ship. If a ship is sinking, you don’t complain to the Captain who yells ‘All hands on deck!’ that you are too senior or too junior to bale out water with a bucket; you bale! The government are not going to bale you out or your company out. If the crew aren’t careful, they will all end up going down with the ship rather than just the captain.

Using Seniors to mentor Juniors and looking at redeploying people on a short/mid-term basis to fill in gaps or giving them a 3 or 6 month rotating stewardship of an area that needs attention may be an innovative way forward to help keep a business afloat. Retention of the best human capital assets is essential; developing people from within is fundamental. Hiring now for business critical positions is paramount. Perhaps there is a bottleneck in an organisation that although it requires a new hire, may unlock other areas within the business and increase profitability. Set a course on the compass that keeps the ship steady and weathers the storm and will allow it to sail away from the competition when the trade winds pick up. Beware, when the winds shift, everybody will want the same people at the same time; the best. Now is the time to get and keep the right people of the bus, and when the time is right, sit them in the right seats.

From a candidate’s point of view, particularly juniors, there has long been a tendency to undervalue his or her own curriculum and profile. Making a career step from a position of strength often leads to a great move rather than just a move. Looking for work with a badly and underprepared curriculum and portfolio not tailored to a specific position does nothing to increase the chances of finding the right next move or indeed work. Often a scattergun approach is used, sending curriculums to a number of offers at the same time, some completely inappropriate for their experience, but made all too easy to apply for by the left click of a mouse.  Once all the extraneous applications have been removed and in the most professional of cases replied to, there begins a lengthy selection process. This often has 2, 3 or 4 interviews and can last weeks, sometimes months and often leaves a candidate with diminishing enthusiasm for the opportunity and company. It should be no surprise that the most self-respecting candidates get fed up with this treatment and decide to go with another faster, more responsive process and opportunity that arises in that time.

So what does the future hold? Even more difficult times are ahead and the companies that think and behave in increasingly innovative ways with regard to their human capital will have the edge. The ‘them and us’ approach must be superseded by relationships based on mutual respect and trust. A workplace where an employee feels challenged valued and nurtured. An environment that is organised, results-driven, performance, not tenure-based where everyone is in the same boat and sailing in the same direction.  A place where he or she feels confident enough in where they work and what they are doing to feel that they can leave the office before his boss in the evening; sometimes.

At Gascoigne Partners we pride ourselves on the relationships we have with our candidates; they are our lifeblood. Our Candidate Care Programme has a structured methodology that ensures that we find out what our candidates are looking for and then advice is given on what might be a great career step. With a heavy focus on the candidate, the client satisfaction follows, because unless we can make a win/win match, we are not interested, because it is not in the interest of either party. At the beginning of embarking on a journey with our clients, as specialists, we get to know not only their business, but also their business culture and then find candidates to match it. Although there are many candidates looking for work at present, it is the stock value of the most creative, best-prepared, most innovative and highly motivated candidates who are thinking about a change for the right reasons that is rising. If you are looking for a sound investment in these turbulent times; invest in the right people.

Jo Gascoigne is the CEO & Founder of Gascoigne Partners S.L.; a Spanish based start-up recruitment company specialising in Marketing, Creative and Communications professionals. Originally from London, Jo is married with a Spanish wife and four children and has been residing and working in Spain since 1998.

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