Blog article #2 – 16.10.2024 – Bastian Rolle
How leadership impacts resignation in the advertising industry
The advertising industry is fast-paced, creative, and highly dynamic, but it also faces serious challenges in employee satisfaction and retention. With fluctuation rates ranging between 35-40%, agency leaders are under pressure to find effective ways to keep talent happy and engaged. Recent research sheds light on the critical role leadership styles play in this equation.
The findings presented in this article are based on my own research and study, conducted with multiple sources, including an online survey I carried out in October 2023. The qualitative fill-out-survey had 147 participants from the advertising industry across Germany, the UK, and the Netherlands. These insights are supplemented by various other studies and research, ensuring a comprehensive view of the industry’s current landscape.
High employee resignations are one of the most pressing issues in advertising today. According to industry studies, agencies globally are struggling with quitting rates that have climbed significantly since 2020. The reasons behind this are multifaceted, but a significant contributor is poor leadership. Many employees in the industry are leaving not because of the work itself but because of how they are being managed.
Foto: Bethany Legg / Unsplash
Why employees leave ad agencies (survey results)
🚨 burnout and stress
The intense pace of the advertising industry, combined with long hours and unrealistic client demands, leads many employees straight to burnout. According to the survey, a staggering 41.6% of respondents said they experienced significant stress due to their manager’s decisions on a weekly basis. Burnout is no longer an isolated issue; it’s a systemic problem that agencies must confront to avoid talent exodus.
🚨 toxic leadership and poor communication
A major driver of employee dissatisfaction is toxic leadership. This includes leaders who fail to communicate effectively, provide feedback, or foster a positive work environment. 51.9% of respondents admitted they had considered leaving their job due to their manager’s leadership style, with 11.7% actually quitting because of it. Employees often cite poor communication, micromanagement, and a lack of trust as major issues, leading to an environment where creativity is stifled, and morale plummets.
🚨 lack of career growth and development
The absence of clear progression paths is another major reason for high resignation in advertising. A significant 52% of employees stated that the lack of development opportunities was a key factor in their decision to leave. Many professionals feel like they’ve hit a ceiling in their current role, with no clear opportunities for promotion or skill development. Agencies that fail to invest in their employees’ career growth risk becoming talent churners rather than talent retainers.
🚨 workplace toxicity and politics
Agencies are not immune to office politics and unhealthy competition. The survey revealed that employees who feel undermined by office politics or experience favoritism are far more likely to leave. Additionally, toxic workplace environments, characterized by public criticism, lack of recognition, or overly competitive dynamics, lead to higher turnover. As one respondent put it, “I left because I felt my manager was more concerned with protecting their own career than supporting the team.“
🚨 poor work-life balance
In an industry notorious for its “work hard, play hard” mentality, maintaining a healthy work-life balance is increasingly difficult. While remote work options and flexible schedules have become more common post-pandemic, many employees still feel the pressure of long hours and constant availability. In fact, 22.4% of respondents who left their job did so because they couldn’t manage the stress and had a poor work-life balance. The industry’s relentless push for results without regard for employee well-being continues to drive talent out of agencies that don’t adapt to modern expectations.
🚨 unclear purpose and lack of meaning
While many professionals join the advertising world to create impactful work, they can quickly become disillusioned if they feel disconnected from their agency’s mission. 18.2% of employees indicated that a lack of purpose or meaning in their work contributed to their decision to leave. As younger generations increasingly prioritize purpose-driven work, agencies that fail to provide meaningful engagement beyond profit margins will struggle to retain passionate, creative talent.
In addition to these challenges directly tied to leadership, there are multiple more that are also connected to internal dynamics within agencies that drive employees to leave (elaborated through my own research) . These often stem from structural and leadership-related issues:
- Separation of leadership and management: In many agencies, there’s a clear division between leadership’s visionary role and day-to-day management tasks. While leadership focuses on high-level strategies, management is left to handle operational issues, often without enough support. This disconnect leaves employees feeling under-supported in their roles, as they don’t receive the guidance and attention needed from leaders, contributing to dissatisfaction and turnover.
- Too fast promotions without proper training: Agencies often promote employees quickly to meet internal demands, but without equipping them with the necessary leadership skills. This rush to promote can lead to mismanagement and frustration within teams. Newly promoted leaders may lack the experience or training to effectively guide their teams, leading to poor performance, stress, and eventually high turnover rates.
- Challenges in middle management: Middle managers are often caught between the strategic demands of senior leadership and the operational needs of their teams. This position can be incredibly stressful, as middle managers may not have the tools or support needed to bridge the gap. As a result, middle management frequently experiences high turnover due to lack of direction, support, and clarity in their roles.
- Employed manager vs. entrepreneurs: Leadership in agencies often entails balancing the roles of both an employer and an entrepreneur. This dual responsibility can cause conflicts when leaders prioritize the company’s growth over the well-being of employees, further contributing to quitting.
Foto: Stanley Dai / Unsplash
How leadership can reduce resignation
Reducing turnover in advertising agencies requires more than just addressing surface-level issues. The study findings point to several critical areas where leadership can make tangible improvements to retain top talent and create a more sustainable, employee-friendly workplace. Here’s how agency leaders can take action:
Prioritize mental health
Burnout is a significant driver of resignation, with 41.6% of employees reporting weekly stress caused by their manager’s actions. To counter this, leaders must actively promote mental health initiatives, encourage work-life balance, and reduce the culture of overwork. Implementing clear boundaries on work hours and supporting a culture of self-care are key steps.
Build a culture of transparent communication
Poor communication from leadership often leads to frustration and disengagement. 79.2% of respondents ranked clear communication as a top priority. Leaders need to practice transparent decision-making, share company goals regularly, and ensure that feedback is not only given but also encouraged from the team. Open channels for dialogue between leadership and employees foster trust and reduce the feeling of being in the dark, which contributes to quitting.
Foster career growth and development
One of the most significant findings from the survey is the lack of development opportunities. 52% of employees cited the absence of career progression as a primary reason for leaving. Leaders must offer clear growth pathways, training programs, and mentorship opportunities. Employees are more likely to stay if they feel they are advancing their careers.
Promote flexibility and work-life-balance
With 22.4% of respondents leaving due to poor work-life balance, it’s evident that employees are seeking greater control over their work environments. Leaders should embrace flexible work arrangements, including hybrid or remote work options, which have become essential. Encouraging flexible hours and promoting a healthier balance between work and personal life can improve retention and reduce burnout. Agencies that lead with flexibility show they value their employees' personal well-being. (Work-life blending is also a key topic with the same importance, especially for younger generations, and I’ll share more thoughts on that in an upcoming blog article.)
Adapt a transformational leadership style
Employees increasingly value leaders who inspire, motivate, and empower. My study shows that employees respond well to transformational leaders who align personal goals with the broader vision of the agency. This style of leadership fosters innovation and creativity, which are vital in a competitive, idea-driven industry like advertising. Leaders who invest in their team’s personal and professional growth build loyalty and a strong sense of a clear mission.
Adress toxicity and office politics heads-on
Toxic environments drive people away, fast. 51.9% of employees considered leaving their jobs due to leadership issues such as micromanagement, favoritism, and poor workplace culture. Leadership must be proactive in identifying and addressing toxic behaviors. By promoting fairness, recognition, and inclusivity, leaders can create a more positive and supportive workplace.
Align purpose with action
More than ever, employees are looking for meaning in their work. 18.2% of respondents were motivated by the purpose of their company, and this trend is especially prominent among younger generations. Agencies must go beyond profit-driven goals and actively demonstrate their values through the work they do. Leaders should communicate a clear mission, engage employees in purpose-driven projects, and create a company culture that reflects these values. (Purpose is a broad and inflationary term - with a critical view I will write about the advantages and disadvantages of purpose in another blog article.)
Empower autonomy with trust
Employees want to feel trusted and empowered. A recurring theme in the survey was the desire for autonomy, with many respondents leaving jobs due to micromanagement and lack of trust. Leadership should encourage team members to take ownership of their projects and make independent decisions. By offering support without controlling every detail, leaders can foster a more dynamic, creative, and satisfying work environment. 85.7% of employees valued technical competence and trust from their leaders, so leaders must also show they have the expertise to guide without stifling autonomy.
Reward and recognize achievements
Recognition is a simple but powerful tool in reducing resignation. Employees need to feel that their hard work is noticed and appreciated. Yet, the survey revealed that many employees feel undervalued. Regularly celebrating successes – whether it’s a shoutout in meetings, bonuses for exceptional work, or career advancement opportunities – can have a profound effect on morale and loyalty.
In summary
Leadership is the cornerstone of employee retention in advertising agencies. By fostering a culture of communication, flexibility, trust, and growth, leaders can address the core reasons behind quitting. Investing in employees’ personal and professional development, recognizing their contributions, and creating a purpose-driven workplace are not just ways to retain talent – they are crucial for the long-term success of any agency.
Of course, leadership is not the only factor influencing resignation. External pressures like economic conditions or challenging clients, as well as internal issues such as workload management, also play significant roles. And management and leadership can also be dissected separately, which will be done in future articles. However, effective leadership can help mitigate many of these challenges by fostering resilience and creating a more supportive, adaptable work environment.
Foto: Rob Walsh / Unsplash
What’s next: leadership done right
While this article focuses more on the symptoms of poor leadership and its impact on resignation, my next blog post will dive deeper into more hands-on solutions on how to develop effective leaders. Drawing from my master’s thesis research, I’ll explore leadership models and what it takes to grow leaders – not just promote them. We’ll look at how to build leadership skills that can guide an agency through both creative and operational challenges.
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Check my other blog article (in German): Pop-Cultural Comfort Zones: Was Marken lernen können.
