16963: Stagwell Discovers Data Defending RTO Directives…?

 

Stagwell posted on Harris Poll research indicating Gen Z workers crave more in-person interaction.

 

The White holding company will undoubtedly leverage the data to justify RTO mandates at its miserable White advertising agencies.

16922: Overreaction Of The Week.

 

Digiday published a lead-in for the WorkLife report on Adland responses to the WPP RTO policy titled: Industry clutches pearls after WPP returns to office four days a week.

 

Industry clutches pearls?

 

While the phrase has gained cross-cultural and gender-neutral status, Wiktionary states its origin as follows: From the stereotype of a woman who wears pearls and is easily offended.

 

Given Adland’s gender inequality issues—as well as intersectionality exposed via the privileges enjoyed by White women in the field—surely Digiday editors could have hatched a better headline.

 

Cast not pearls before swine…?

 

Industry clutches pearls after WPP returns to office four days a week

 

By Tony Case

 

WPP’s announcement requiring employees to return to the office four days a week has sent shockwaves through the advertising industry, spotlighting a deepening divide between corporate-owned and independent agencies on workplace flexibility. While some leaders argue in-person collaboration fuels creativity, critics view the move as outdated and morale-crushing.

 

Employees have voiced frustration over the abrupt policy from the agency holding group, citing poor communication and personal challenges, with some questioning whether “creative collaboration” outweighs childcare needs or two-hour commutes. Meanwhile, independents see an opportunity to attract disillusioned talent championing flexible models that balance productivity with personal well-being.

 

As WPP braces for potential backlash — including a petition with over 15,000 signatures — the industry grapples with a critical question: can rigid mandates coexist with the evolving expectations of the modern workforce? For now, the battle lines are drawn, with the future of talent and agency hanging in the balance.

 

Read the fully story.

16921: TGIF (At Least For WPP WFH FTEs).

Digiday Media’s WorkLife published a lengthy report featuring Adland responses to the WPP RTO policy. The Drum and Campaign did likewise, with the latter presenting pushback from WPP CEO Mark Read.

 

Seems the associated acronyms have new meanings.

 

WFH = Whine From Home.

 

RTO = Return To Oligarchy.

 

WPP = White People Prison.

 

‘Yeah, I think we’re eff’d’: The debate over WPP’s RTO mandate highlights a stark industry divide

 

By Tony Case

 

When WPP announced last week that it would require its 114,000 employees to return to the office four days per week come April, the global advertising giant sparked more than just water-cooler chatter.

 

The policy — the strictest RTO edict yet among the agency holding companies — has resulted in intense debate about the future of work in the advertising industry, pointing to a stark divide between how large, corporate-owned agencies and privately held shops approach workplace flexibility in a post-pandemic world.

 

“We need as many working models as agency cultures,” said Ivan Kayser, CEO of Stagwell’s Redscout, whose work arrangement Kayser describes as “remote first but not remote only” and “a continuous work in progress.” At the end of the day, he thinks the WPP decision makes sense. “Its strength is in its size, and I can understand that leadership felt that size could be unlocked best in person,” he said. “For the rest of the industry, I believe it is a reminder to focus on who you are. There will not be one right model of work for all the different types of agencies.”

 

Evan Levy, CEO of agency Fitzco, which requires employees to be in the office two days per week, believes the WPP move will embolden other companies to follow suit, further underscoring the differences between the large, corporate-owned agencies and the indies. “This will become a new, formidable issue that separates progressive, flexible agencies — private, independent — from corporate, controlling ones,” he said. “Why choose the latter if all else — salary, benefits, opportunity — is relatively equal?”

 

Even with the growing number of employers and government figures embracing RTO, for many WPP employees the announcement that they would transition from a hybrid arrangement — one that has had staffers trekking to the office as little as one day per week — came as a jolt.

 

As one WPP employee who requested anonymity put it, the company “completely blindsided their employees with this announcement,” which was followed by “a complete lack of communication, mixed messages and vagueness about their new policies. It’s left many people in the dark about if they have a job in the next couple months and what should be their next steps.”

 

Another WPP employee summed up the general mood around the new policy. “Yeah, I think we’re eff’d.” Another, when asked whether they would consider commuting to the office four days a week, responded: “I would do just about anything else.” Still another revealed that they have had positive conversations with recruiters from other agencies since the news broke.

 

Sources inside the company also complain that, in the memo, news about the RTO was buried in a larger update on the company’s goals, with little explanation or guidance for those affected. Management at the local level seem in some cases to be in the dark as well. One employee related that when they asked their manager about specific policy details, they replied, “I’m not HR.”

 

In the memo, which was obtained by WorkLife, WPP CEO Mark Read came off as anything but vague, stating: “I believe that we do our best work when we are together in person.” He stressed that the change “doesn’t mean we’re going back to the old ways of doing things,” commenting that the company intends to “keep that spirit of flexibility and trust” that was established during the pandemic. Some roles that have always been remote will continue to be, he emphasized.

 

Read’s reassurances apparently did little to placate everybody. A Change.org petition calling for WPP to revoke its mandate has notched more than 15,000 signatures — and unleashed yet another barrage of reactions ranging from the lugubrious to the irate. Here’s how one commenter on the site characterized the fallout: “Forcing individuals to return to an office when the rest of their team are in other offices/remote locations does nothing for camaraderie or productivity. Rather, it decreases morale, creates resentment and increases stress by eating away at our personal lives.”

 

‘It won’t be popular with everyone’

 

A WPP spokesperson provided this statement in response to the reaction to its new policy: “We believe this is the right policy for the long-term interests of the company as a whole, knowing that it won’t be popular with everyone. And we will take the time to implement it in a collaborative and pragmatic way with our teams.”

 

Meanwhile, a WPP insider emphasized that, despite the perception that the RTO policy was handed down from Read, it was actually discussed and ultimately agreed upon by the heads of all its agencies. What’s more, the WPP board signed off on it.

 

Ellen Faulkner, CEO of the agency Lewis, points to the typical sensitivities around communications during such a transition. “Change is never easy, and announcing it can be equally challenging,” she said, adding that the most effective strategy is conveying empathy with the rank and file. “People generally want to do the right thing, but their initial reactions to change often stem from a place of personal concern,” she said.

 

Christine Armstrong, who runs workplace consultancy Armstrong & Partners, said WPP employees she’s been in touch with are “horrified” by the mandate. “It feels old-school management irrational. A lot of them are saying they don’t even have [enough office] space, even if they were to really enforce this,” she said. “And then I think there’s a lot of agencies around the edges that are just rolling their eyes and going, ‘Yeah, another memo from headquarters. Shrug. Carry on.’”

 

Armstrong noted a recent survey of more than 3,800 workers in the U.S. by the online resume service LiveCareer revealing that 4 in 10 would rather leave their partner than return to the office. “That’s how much people care about this — and this is the issue you want to pick a fight on?” she said.

 

Regardless of what WPP or any other single company does about RTO, views about remote-versus-in-person arrangements in the ad business span the spectrum.

On one side is Sebastian Ellis, founder of agency Ellis Digital, who supports a return to the office. The remote work policy it converted to during the pandemic left much to be desired, as he sees it. “We lacked the buzz and also our productivity and creativity suffered — hence why we went back to being in the office as soon as the restrictions lifted,” he said. On the other is Veronica Clerkin, co-founder of agency AMZG, who quotes Spotify’s CHRO Katarina Berg: “You can’t spend a lot of time hiring grown-ups and then treat them like children.” AMZG offers fully remote options with no pressure to come into the office.

 

Sticking with hybrid — for now

 

Between the extremes, many agencies have landed on successful hybrid models and intend to stick with them — for the time being anyway.

 

Joe Maglio, CEO of the agencies McKinney and Barbarian and president of their parent company Cheil North America, said its current setup of three days in the office, two remote “gives us the best of both worlds.”

 

He stressed that in-person collaboration, learning and development, and creative inspiration are crucial to the agencies’ success. “It’s not just about client meetings or strategy briefs, it’s about impromptu, unscheduled conversations that spark an idea or team building and mentorship opportunities that can’t fully be achieved without an in-person component to our work week,” Maglio added.

 

John Montgomery, founder and CEO of agency Big Com, noted that ad agencies have always operated differently from other businesses, being “always on by nature, managing media campaigns around the clock and responding to PR needs at a moment’s notice. The key is finding the right balance between flexibility and accountability … The creative nature of our work means we’ve never been particularly rigid in our approach to where and how work gets done. What matters most is the quality of the output and maintaining strong client relationships, regardless of where our teams are physically located.”

 

Justin Roberts, who heads the Culture and Inclusion Center of Excellence at Kepler, said his agency carefully planned its transition from two to three days in person — a hybrid model it has retained. “We tried to understand what a better balance for us was, in terms of still providing a great service for clients, but also not losing some of the magic that can be had when you’re seeing people in person,” he said.

 

For their part, the holding companies have leaned toward a return to the office akin to WPP. Omnicom has what a spokesperson characterized as a “flexible, hybrid working model” that asks staff to come to the office at least three days per week, a policy that took effect nearly three years ago. Havas also requires three days in person, as does Publicis, which made headlines for laying off workers who didn’t comply. Meanwhile, IPG (engaged in a merger with Omnicom) lets its agencies set their own work models, as does Stagwell.

 

Unhappy campers, a talent bonanza

 

Among some indie agencies, WPP’s mandate and those of other corporate owners are seen as a rich opportunity for cultivating talent. “The abundance of unhappy talent in our industry will continue to call upon independent agencies who are making great creative work while operating within the autonomy of their own decision-making power,” explained Haley Hunter, founder and COO of agency Party Land, noting the agency’s 90% talent retention rate.

 

Likewise, Talia Arnold, managing director at Exverus Media, touts her shop’s successful, flexible approach. It requires its LA-based staff to come into the office one day per week, while employees who are based elsewhere remain remote. They make the arrangement work via weekly all-hands video meetups, Slack and project management software.

 

Still, the reality is that for some WPP employees, the mandate presents serious practical challenges, even though the company stressed in the memo that accommodations would be made where needed. One insider related how the new policy would result in a two-hour commute each way, upending their childcare arrangements. “This is not just a policy update — this is peoples’ livelihoods,” they said. “I don’t pay my bills with ‘creative collaboration’ and ‘in-person synergy.’”

 

Aleena Mazhar Kuzma, senior vp and partner at agency FUSE, argues that mandating such rigid RTO requirements is simply outdated. “We’ve proven that people in our industry can create great work with flexible working environments,” she said. “We need to create organizations where people get excited to come into the office to connect, collaborate and build culture — and that can happen in a hybrid environment, where the office has a role, while maintaining flexibility.”

 

Tom Laranjo, group CEO at agency Total Media, emphasizes the importance of balancing different needs. “In agencies, creativity and collaboration thrive on in-person interactions, but we’ve found that flexibility enhances inclusivity and talent retention,” he said. Unlike other sectors, advertising prioritizes creating an environment “where staff feel both supported and inspired.”

 

Robin Skidmore, global CEO of agency Journey Further, stresses the importance of “trust-based flexibility,” or empowering the agency’s teams to work in ways that suit them. It’s an approach the 8-year-old agency has had since it started, helping deliver a staff retention rate of 96%.

 

Emily Stutzman, CEO of agency Happylucky, sees WPP’s move as symptomatic of deeper industry issues. “Creative people have long been drawn to the advertising industry for its counter-culture ethos, its vibrant culture, its celebration of individuality and its collaborative spirit…” she pointed out. “The very fact that some executive they’ve never met sitting in their penthouse office has to tell them how and where they do their best work feels condescending to a workforce that learned how to thrive in a WFH reality.”

 

Others express an alternative view of the state of advertising work. In his Substack piece on the WPP policy, workplace expert Bruce Daisley notes that, “unlike tech (Amazon) and finance (JPMorgan Chase), media jobs aren’t aspirational career destinations anymore,” pointing out that advertising roles, “once gloriously paid,” now often involve “squinting into spreadsheets all day earning salaries that are often substantially lower than the clients and media owners they deal with.” He closes with: “Good luck to WPP. Like Amazon, they look set to discover that you can’t build the future by just asking to turn the clock back to 2019.”

 

Elliot Ward, founder of agency Excite OOH, cuts to the heart of the matter: “Let’s be honest about what’s driving these blanket return-to-office mandates. It’s not about productivity — it’s about justifying expensive real estate investments.”

 

As the ad industry continues to sort out how and where it’s going to work day to day, the success of the various workplace models may ultimately be determined by their ability to attract and retain talent — an urgent concern for agencies that find themselves in a brain drain, locked in a competition with Silicon Valley and Wall Street for the best and brightest.

 

As Fredrik Thomassen, founder and CEO of creative services company Superside, put it, “WPP’s move will limit their access to diverse creative perspectives. Exceptional talent exists across the globe, not just in proximity to physical office locations.”

 

For the moment, it remains to be seen whether WPP’s gamble on RTO will inspire other agencies to fall in line or spawn a talent exodus to employers where looser work setups and Zoom calls still rule.

16918: WPP RTO POV WTF.

Advertising Age reported a group called “Concerned WPP Employees” launched a petition opposing the WPP RTO policy announced last week. The petition includes:

 

“… [W]e call on Mark Read and the decision-making body at WPP to reconsider this mandate and adopt a policy that respects and prioritises the well-being and preferences of its employees.”

 

The petitioners and WPP volleyed data to defend their respective positions, underscoring how data is dismissed when making dictatorial decisions.

 

Indeed, there’s plenty of data to prove White people with political power will respect and prioritize personal well-being and preferences over the needs and desires of others. That’s a foundational tenet of fascism and systemic racism—two things abundantly common in White holding companies.

 

Also, expect the petitioning group to be renamed “Concerned WPP Ex-Employees” soon.

 

WPP Employees Appear To Push Back On Return-To-Office Policy

 

A group called ‘Concerned WPP Employees’ launched a petition on Change.org

 

By Brian Bonilla

 

WPP employees appear to be pushing back on the holding company’s new four-day in-office requirement.

 

A petition started by “Concerned WPP Employees” on Change.org called for WPP CEO Mark Read to reconsider the policy, which was announced Tuesday and is set to take effect in April.

 

“In a post-COVID world where many businesses have embraced flexible working styles, WPP’s decision seems to be a step backwards in supporting employee well-being and work-life balance, citing anecdotal data that either does not exist or has been misrepresented,” reads the petition. “The mental and social effects on employees due to such rigid work regimes can be extensive. Therefore, we call on Mark Read and the decision-making body at WPP to reconsider this mandate and adopt a policy that respects and prioritizes the well-being and preferences of its employees.”

 

It’s unclear who exactly started the petition, which, as of writing, has over 2,000 signatures and several comments deriding the policy. Anyone can sign and comment on the petition. (WPP has a little over 100,000 employees.) 

 

“Research shows that women, particularly mums of young children, are the first to suffer from RTO policies, often having to move part-time or leave jobs entirely due to childcare costs/needing to spend time with children,” one person commented. “WFH a few times a week made the juggle that bit more manageable—for many it now won’t be.”

 

In his memo, Read said the company will offer some employees a more flexible work policy, “including for those with caring responsibilities, health issues and other considerations.”

 

In response to the petition, a WPP spokesperson said: “We believe this is the right policy for the long-term interests of the company as a whole, knowing that it won’t be popular with everyone. And we will take the time to implement it in a collaborative and pragmatic way with our teams.”

 

WPP was the world’s largest agency company based on 2023 revenue. (If Omnicom’s plan to acquire Interpublic Group of Cos. is completed, it would become the largest agency company by 2023 revenue.)

 

“The data from across WPP agencies shows that higher levels of office attendance are associated with stronger employee engagement, improved client survey scores and better financial performance,” Read wrote in his memo. “More of our clients are moving in this direction and expecting it of the teams who work with them.”

16913: Data Proves Adland’s BS On RTO & DEI.

MediaPost reported WPP will mandate four days in the office per week, including two Fridays per month.

 

This points to yet another DEIBA+-related issue in Adland. Apologies in advance for the winding dissertation.

 

White advertising agencies boast about being data-driven powerhouses. White holding companies battle in the Data Wars. Data-backed decisions deliver success. Proprietary data. Data, data, data.

 

And yet.

 

White companies—including WPP—push RTO policies by declaring bullshit such as, “I believe that we do our best work when we are together in person.”

 

There is plenty of data, however, indicating employees prefer to work from home—and many resign over RTO demands.

 

And there is no data to support people do their best work when they are physically united.

 

On the flipside, there is abundant data to prove enterprises embracing DEIBA+ are more profitable, pleasing, and prosperous.

 

In short, White advertising agencies and White holding companies ignore the data to advance RTO—and to abandon DEIBA+.

 

WTF.

 

WPP To Implement 4 Day In-The-Office Workweek

 

By Steve McClellan

 

WPP has advised its employees of a new office attendance policy that will take effect in April that includes the requirement that staffers work in the office for a minimum of four days per week on average, including two Fridays a month. The policy is being imposed globally. 

 

Employees will have one flexible workday per week, with specific arrangements to be worked out with managers. 

 

There will be exceptions to be determined by way of a formal approval process. 

 

The April timeframe is designed to give workers time to make needed adjustments and for agencies to prepare their workspaces. 

 

The news was delivered via a memo from WPP CEO Mark Read.  

 

“While industry mergers and jostling for status may distract our competitors, focus will be paramount for us in 2025,” Read wrote. “We have the opportunity to stand out by being more obsessed than ever with serving our clients. In every single decision we make, we should ask ourselves “how will this help us do even better work for our clients?” Those companies who embrace this philosophy will be those who emerge on top.” 

 

As for the new work-in-office policy, Read explained, “I believe that we do our best work when we are together in person. It’s easier to learn from each other, it’s a better way to mentor colleagues starting out in the industry, and it helps us win pitches as a truly integrated team. The data from across WPP agencies shows that higher levels of office attendance are associated with stronger employee engagement, improved client survey scores and better financial performance. More of our clients are moving in this direction and expecting it of the teams who work with them.”  

 

And not just clients. Publicis Groupe imposed a new global back-to-office policy that took effect at the start of 2024, albeit mandating three days a week in the office, with some other differences as well.  

 

Read also touched on priorities for 2025. “Demand from clients for creative ideas, effective media plans, brilliant PR campaigns and outstanding design remains constant, but the way in which we deliver our work is changing faster than I have ever seen,” he wrote. “That’s why technology, data and AI are at the heart of our plans for the future, and why adoption of our AI-driven marketing operating system WPP Open has grown so quickly. Keeping up that momentum is another key objective for 2025.”   

 

The company disclosed last year that it would invest more than $300 million annually in AI for the next several years.  

 

“WPP Open helped us win a number of 2024’s biggest reviews and we are going to increase our investment in Open this year to build on the success it has brought us. It will be central to how we bring an integrated, AI-enabled offer to market, with the goal of producing better results for clients and winning more than our fair share of pitches in the year ahead.” 

16844: The Cost Of Cubicle Confinement.

Digiday Media’s Worklife reported on a study showing RTO costs employees $61 per day on average—that’s $10 more than last year. The breakdown equates to commuting and parking at $27, breakfast and coffee at $13, and lunch at $21 per day.

 

Applied to Adland, an industry that charges by the hour, it would also be right to add costs for time spent commuting to and from the office, as well as for dinner if employers don’t allow expensing after-hours meals.

 

Do the simple math: employees must cough up $305 per week for the privilege of sitting in a cubicle.

 

Forget cost-of-living salary increases. It’s time to request a cost-of-RTO raise.

 

Workers spending more than $60 daily to work from the office

 

By Hailey Mensik

 

Going back to the office is costing staff more than just their time. They’re spending $61 on average every day when they come in, paying for parking and gas or transit, coffee and lunch, and even breakfast or dinner on some days, a new survey found. 

 

That’s up from $51 last year, according to the survey from Owl Labs, which includes responses from over 2,000 U.S. workers. This financial burden is one factor driving ongoing resistance to returning to offices, and comes as some major employers like Amazon and Dell have announced plans for employees to return for the five-day week.

 

“If you’re being asked to go into the office five days a week, an additional $300 a week in expenses is really, really high,” said Owl Labs CEO Frank Weishaupt. “I think that the long-term concern is employees are going to look for more hybrid opportunities and more remote opportunities,” he said. 

 

“You really need to understand the culture and the employee base within your company, to understand how you might be able to incentivize return to the office by potentially subsidizing some of those key things,” he said. 

 

On average workers are spending $27 a day on commuting costs and parking, $13 on breakfast and coffee, and $21 at lunch, the report found.

 

“What’s fascinating about this transition back to work is that I believe employers have forgotten how very expensive it is to go to work,” said Joy Taylor, managing director at Alliant Consulting. “It involves parking for many organizations, which is very costly. It’s childcare, food, gas,” she said.

 

“Those are dollars that matter to every single employee, regardless of the level, but of course hits harder for those that are at the beginning stages of their careers. And organizations need to be very aware of the impacts that those costs are undertaking to their employees,” Taylor said.

 

Workers in the survey said higher compensation would ease the financial burden of returning to the office, with many experiencing years of inflation as the cost of living has risen with no accompanying raises. But wage growth continues slowing, with raises and bonuses this year unlikely to be that generous. 

 

Workers also cited having shorter commutes, free or subsidized food and beverages, and having their parking and commuting costs covered by their employer, as ways to ease the return. 

 

According to Taylor, parking should be paid for by an employer. Providing staff with more free food, and a wider variety of healthier and nutritious food (not pizza parties) is another way to help make the return to in-person work easier and cheaper, she said.

 

Steve Sacona, founder of Top 10 Lawyers, an Australia-based lawyer comparison site, said he spends around $80 these days when he heads into the office. “Even a simple coffee run can hit $10 and lunches can easily reach $20 or more,” he said.

 

At the same time, “costs meant for transportation can really add up, especially with fluctuating gas prices and the occasional need for rideshares,” he said.

 

“What stands out to me is how these expenses have changed over time. With inflation squeezing budgets tighter each trip to the office feels more expensive. It’s essential we keep a close eye on these costs as we balance the benefits of remote work with the need for in-person collaboration.”

16359: Repeating RTO Ranting.

 

Advertising Age published a perspective from Said Differently CEO Rachel Barek, who advocated for White advertising agencies to go fully remote. On the one hand, Barek’s viewpoint is surely fueled by her company’s position as a consultancy that “curates experts, creating team alchemy”—which sounds like a fuzzy twist on crowdsourcing freelance services à la the defunct Victors & Spoils. On the flip side, the way that Adland has evolved into a project-based business calls for a different approach. Although Barek missed the opportunity to call out how RTO mandates may adversely affect racial and ethnic diversity, as Black and Brown people are not eager to come back to enterprises built on systemic racism.

 

Why Agencies Should Go Fully Remote—And How Return-To-Office Mandates And Hybrid Schedules Are A Risky Bet

 

When creatives are forced into an inefficient work model, they can easily bring their talents elsewhere

 

By Rachel Barek

 

In recent weeks, we’ve seen a renewed push from companies to get employees back to the office. Some are threatening potential financial repercussions to those who refuse. In perhaps the strangest irony, even Zoom, the company that powered the remote work revolution during the pandemic, called on its workforce to return to the office at least two days a week.

 

When Zoom announced its “structured hybrid approach,” it led to headlines such as “The remote work revolution is officially dead.” That makes for provocative clickbait, but it isn’t true. Average office occupancy in major cities remains below 50%, and the vast majority of employees continue to believe they are more productive working from home.

 

In my experience, they are right. I expect this latest wave of return-to-office pressure to fail just as the previous ones have, especially in the creative industry. Top talent has never had more career options. Even in a softer economy, employees—not companies—still have the leverage. And clients are starting to catch on that they’re ultimately the ones paying for all that fancy office space. That’s why our industry should realize that the way we work has fundamentally changed and lead the charge toward a distributed work model future.

 

While I disagree with agencies that believe their teams need to be physically together at all times, I can at least respect that perspective. What makes even less sense is the hybrid model that so many agencies are trying to adopt. According to EY’s Future Workplace Index, 59% of companies are operating in a hybrid model.

 

The idea is that requiring people to come to the office will strengthen company culture and foster idea-sharing that can’t happen online. In reality, a two- or three-office-days model creates cultural rifts and scheduling chaos. And while the public argument for returning to the office is usually about culture and collaboration, it is more often driven by a dated idea that time in a seat is time better spent. If this is how a company is measuring employee productivity, it either has the wrong employees or hasn’t invested in a real understanding of impact and output.

 

A hybrid approach usually means that people are coming in on different days, meaning that in-office employees spend their time in Zoom meetings they could have easily taken from home. And have you ever been in a meeting where some participants are together in-person and others have dialed in? That is not a level playing field or an environment conducive to collaboration and creativity.

 

Even more specific to the creative industry is the self-inflicted wound in-office requirements have on an agency’s ability to recruit the best talent. If a company mandates three office days per week, employees need to live within a reasonable commuting distance of the office. All of a sudden, instead of recruiting from an ocean of global talent, agencies are reduced to a puddle that’s local to a company’s physical locations. Flexible startups built on a distributed work model can exploit this arbitrage opportunity to recruit talent who don’t happen to live in a major metropolitan area.

 

Allowing just those employees who live beyond a reasonable distance from an office to continue to work remotely creates problems, too. These fully remote employees miss out on career-advancing opportunities and feel overlooked, while colleagues who are not exempt from hybrid work can feel resentful. None of this is good for company culture.

 

In-office requirements are also a financial loser for our industry. As all legacy agencies and holding companies know, real estate is one of the biggest fixed costs. The companies that reduced these costs during the pandemic saw huge gains on their balance sheets. The smart ones passed at least some of these savings on to their clients and talent. Once upon a time, legacy agencies and holdcos were expected to spend big on trophy office space, but that time is long past. Today, clients value value, and that means getting the best work product at the most competitive price. The overhead of a multifloor trophy office compound in New York doesn’t really provide extra value to clients, yet clients end up footing the bill for it.

 

If we’ve learned anything from the pandemic years, it is that every company needs to be intentional about building culture. I get it—as the world returns to normal, there’s a strong desire by many to get back to the good old days. But I predict we’ll look back at this as an inflection point. We all know the cautionary tales of companies such as Kodak that found themselves in the dustbins of history because they believed that what worked yesterday would keep working tomorrow. Those who try to force a return to in-office work in our industry will find themselves on the wrong side of history.

 

When creatives are forced to retrofit their lives back into an old, inefficient work model, they can easily bring their talents elsewhere. In an age when every creative can be a free agent, this is a risky bet.