Digital And Design Agencies In The UK Face Instability In Staff Retention

February 25, 2013 (PRLEAP.COM) Business News
London, February 19, 2013 The Design Industry Voices report (, in its fourth year of edition, unveils how a number of staff employed in digital and design agencies in the UK intend to change jobs leading to continued instability in the employment sector. The annual survey involved 500 agency staff from the design and digital industries.

The report shows that agencies are employing fewer permanent employees, more freelancers and higher number of unpaid interns. Agencies face difficulty as clients have drastically reduced their budget and expect more work for less money. There is also anapparentcrisis of leadership within agencies. The owners exaggerate their agency performance whereas staff unveil the truth.

"The soaring use of freelancers is driving many permanent workers to take contracts, so talent is harder to find. Agencies are busy and there is work out there, but it's definitely a case of 'more for less'. There is a general sense of instability" said Karina Beasley Co-author and MD of Gabriele Skelton.

The major findings of the report are:

  • The percentage of annual staff turnover is close to 59%, highest ever since the recession started in 2008.
  • Agencies are able to retain only one-third of their staff in less than a year
  • Over one-third of staff deliberately express their personal thoughts and grievances onblogs and social networking websites, two times more than four years before.
  • Almosttwo-third of agency staff quit job in less than a year
  • 90% respondents say clients demand more work at lesser cost
  • 80% clients cut down their marketing budget and agencies face tough times to survive in the market
  • 70% of agencies are ready to work for free to win business; their pitching process also takes more time than usual

  • The Design Industry Voices report also shows some potential facts regarding how design and digital agencies lose sizeable business opportunitiesi.e.the Blue Pound.Blue Pound is the combined spending power of 10 million disabled people in the UK which estimates over £80 billion.

    According to Rachel Fairley, the lead author of the new research and MD of Fairley & Associates "The opportunity to address the needs the 10 million disabled people who live in the UK has yet to be seized. Less than one in ten clients ask for designs to be accessible to people with disabilities and less than half of agency staff know how to design in a way that improves accessibility."

    However, agencies are expected to revive in 2013 as they manage to work with smaller budgets and operate more smartly. It is important that they communicate business strategy properly so that staff knowwhat to anticipate and what notin the current situation.

    Contact Information
    Gabriele Skelton
    146 New Cavendish Street
    London W1W 6YQ
    Tel: +44 (0)207 580 0666