Brandon Cheevers’ article on wage inflation (News, DW 4 July) raises important issues. Consultancies are now having to be more realistic after the new media boom and deliver a genuine return on investment to clients.
If this means that salaries cannot be the mega numbers they were, then this is no more than an aftershock following the dotcom disasters and is to be expected.
Regarding London consultancies, there clearly is a unique challenge operating within the expensive environment of the capital and the higher cost of living puts added pressure on salary packages. However, it is possible to buck the trend and build a strong business within a recession, even here.
I think there are two lessons. First, consultancies should apply genuine understanding of the client’s business and be prepared to deliver across the complete spectrum of disciplines from corporate identity to direct marketing in order to deliver real tangible bottom-line benefits.
Second, it is vital to cultivate the right attitude. Those of us who launched businesses at the time of the last recession in the early 1990s probably have the can-do ethic engrained into our culture. It makes it easy to be realistic with clients, and in turn be realistic with suppliers and employees. The result is a team which appreciates that sustainable salary packages are in its long-term best interests.
The bottom line for consultancies is that recessions are cyclical and inevitable, so whether you are a London or regional design consultancy or freelance designer, it’s time to roll up your sleeves and work your way out of it.