THE BENCH CO-FOUNDERS ON THE CURRENT FREELANCE MARKETPLACE AND HOW AGENCIES AND BRANDS SHOULD STAFF FOR THE FUTURE
By thelaegotist / /
The economic shutdown has already upended the ad industry, causing clients to slash budgets and agencies to furlough or lay off staff outright, and there’s no clear end in sight. But The Bench, an LA-based company that hand-matches vetted freelance talent to agencies and client-side brand marketing teams based on specific project requirements, thinks the crisis may push agencies to reevaluate their staffing models for the long-term. They’ve worked with brands like Nike, Chobani, Kimberly-Clark, Budweiser and Coca-Cola, as well as the majority of agency holding companies and independents.
We talked to co-founders Jennifer Houston and Sarah Musgrove about the impact of COVID-19 on the freelance marketplace already, what types of freelance talent are most in demand, and the advice they would offer to people who are trying out freelance for the first time.
What impact is COVID-19 having on the market for freelance talent?
The bottom line is that freelance talent is going to be in high demand once the rat race resumes. Agency leadership has known for years that their staffing model needed to evolve to meet the needs of a project-based business, and COVID-19 is forcing a reckoning with this.
We are currently seeing agencies do whatever they can to cut overhead, including resorting to layoffs and furloughs, which means they’ll need to rely on freelancers more than ever when business picks back up.
On the brand side, leadership teams are looking for efficiencies, which is true in any recession. Similar to the Great Recession, we’ll likely see more brands bring marketing in-house. Since in-house agencies are designed to leverage freelancers, I think it’s safe to assume that there will be a surge in freelance demand.
As for freelancers themselves, there’s no sugar-coating it, this is a difficult time for them. Over 90% of the freelancers we have spoken to have not seen a dime from the government support programs and they are starting to rack up debt to survive. We are confident that this will turn around once the economy can begin to reopen, but it’s been incredibly hard for people.
Do you see this trend reversing itself as economy rebounds? Or do you think an agency staffing model that relies on a higher percentage of freelancers will become normalized?
A larger percentage of freelancers just makes economic sense. We do not see a way forward for agencies or brands where leveraging more freelancers is not the new normal.
We expect to see agencies move toward a 78% FTE / 22% freelance staffing model, allowing them to run lean and tap into the right talent as needed while keeping their account and client relationship teams in-house. Having this type of flexibility is key to making project-based engagements profitable.
There are enormous benefits to being freelance. In our experience, once people dip a toe into freelance, the majority do not want to go back.
What types of freelance talent are currently in demand among your agency clients?
Anyone who touches content is thriving, such as copywriters, storytellers, designers and editors. Brands are creating content to stay relevant and offering something that can be consumed in lieu of experiences.
It is no surprise, the talent that supports the experiential and live events facets of marketing have experienced the biggest hit.
You also source freelancers for in-house brand marketing teams and startups. What types of talent are they looking for, and how do their needs differ from agencies’?
In-house agencies and start-ups need thinkers and executors.
There is no pandemic case study for modern brands to follow, so in-house agencies are in need of creative thinkers – people who will reimagine their brand, what the brand stands for, and how the brand will deliver value to consumers. For example, Spring campaigns were baked and ready to be launched in March. In-house teams were forced to pivot, in many cases a full 180, in a matter of days to ensure they were not seen as tone deaf. The same is happening now for the Fall creative, creatives are being hired to reimagine campaigns and pinpoint what will speak to the brand’s consumer – RIGHT NOW.
Start-ups have always appreciated a phased marketing approach that aligns with the companies funding pattern. A strong marketing strategist or interim CMO, will be able to identify step by step who is needed from brand design teams, digital marketers, web designers and content creators.
What advice would you give people who are entering the freelance market for the first time?
When I [Sarah] was getting started as a freelancer 9 years ago, it was instrumental for me to remind myself that I was starting a business and to treat it that way. I would recommend forming a legal entity, creating a website, setting aside time to work on your business vs. in your business, and marketing your company. Our partner, Mt. Freelance, created a course on how to get started freelancing and it’s well worth watching for anyone just getting started.
I think the main thing right now is to remain optimistic, prioritize your health and remember this too shall pass. The upcoming months are going to continue to be uncomfortable as clients start to budget and pivot. Be gentle with yourself, if you don’t see traction immediately remember you are not alone, the market will rebound and when it does freelancers will be in high demand.
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