AdNew's ListenIn series looks at industry issues emerging via social media.
The issue of perceived low pay for creatives has emerged online following a period in the middle of the pandemic crisis when some were able to leverage a talent shortage for improved conditions.
Ryan Kelly, founder and CEO of creative, digital and marketing recruitment agency Creative Natives, took to LinkedIn to post: "Why is it that Creatives are so underpaid?"
AdNews understands that the average pay for a junior creative straight out of university is between $50,000 - $55,000.
A mid-level creative can earn $65,000 - $80,000. A senior creative $80,000 - $110,000. And creative directors at $120,000 - $160,000.
"I've been speaking with a number of mid/senior creatives this week and I've been really surprised at what the industry standard is," Kelly wrote.
"It made me think: Are they like musicians who have to plug away until they make it (get nominated for a Cannes award) before they start getting paid the big bucks?
"If you compare the years of experience to the salary I would say that creatives are a fair way behind other disciplines which to me is nuts -- agencies get famous for their big creative ideas.
"It's no wonder we are seeing the rise of creatives going out their own and I don't blame them, freelance rates are almost double the equivalent of what you'd earn in a full-time role."
The industry lately has seen prominent creatives jumping out of advertising. In the past two months, after 15+ years of working in advertising, former CCO at Howaston+Co Levi Slavin and Clemenger BBDO Sydney CEO Brent Kerby resigned to pursue independent business ventures.
Kelly said: "My advice to anyone with great creatives in your team -- make sure that they are being looked after, life is expensive and there are plenty of businesses for them to go to and work on a freelance basis."
Specialist marketing recuiters predict that demand for permanent staff will be replaced by contract workers as the economic headwinds of 2023 cause agencies to tighten their staff budgets.
Jess Wheeler, freelance creative director and writer working with agencies and brands: "Creative agencies used to be run by creatives, but now are run by bean counters and holding groups.
"Hence why creatives are leaving to regain some modicum of control. (And dare I say it, respect.)"
AdNews also understands that generally there is no pay difference between agencies and client side.
Carol Mackay, senior mentor at The Aunties, board member of Never Not Creative and co-founder of Design Business Council: "Creatives are underpaid because the studio/agency owners struggle to run a sustainable, profitable business.
"They struggle because many are from a creative background and the *business* of design was not, and still is not, part of our education. That’s wrong because a majority of creatives are small business owners.
"The good news is, creative businesses that are run efficiently and effectively can afford to reward their designers well. Understanding how to manage a business can be learnt."
Angela Whitehead, risk management assurance at Mediabank: "Having always been client side I could never work out why the HUGE bills my companies were paying to creative agencies didn’t translate into good salaries for the key resources in the business. There seems to be too much investment in BD.
"Losing key creatives is one of the greatest risks of an agency or a consultancy. The model is outdated and needs to change."
Anisha Nair, freelance creative director, senior copywriter and content strategist, commented: "I had a recruiter genuinely ask me once why I valued myself so low.
"He wondered when creatives are already being paid at a lower industry standard, why go lower than that? Luckily, he was good enough to show me what I could be worth and haven't looked back since.
"TBH, as an immigrant at the time, I also didn't even realise how much lesser non-local creatives were being paid until I did a deep-dive scope out after getting my residency."
Mike Jones, co-founder and designer at Never Odd Or Even: "When I was first starting I felt like people thought being a creative was a 'fun job' and therefore the low wage came with the territory.
"Similar thinking around creatives doing unpaid internships and the like to get 'good experience'. Frustrating to say the least."
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