We’ve asked Chris Simmance, founder of The OMG Centre and, a digital agency coach with over 10 years experience working in and leading digital marketing agencies, for his view on why the sudden shift in agency salaries.

The digital agency world is changing. And with it, the salaries for digital agency employees are on the rise. But what’s causing this sudden salary inflation? Is it just the COVID pandemic? Or are there other factors at play? In this article, we’ll take a look at some of the reasons why digital agency salaries have been increasing lately, and explore the potential implications of this trend.

What has caused the increase in digital agency salaries?

There are a few primary factors that have contributed to the recent inflation of digital agency salaries.

First amongst these is the coronavirus pandemic. The pandemic has had a profound impact on businesses across all industries, but digital agencies have been particularly hard-hit. Many digital agencies rely heavily on in-person interactions with clients, and the restrictions placed on travel and in-person meetings have made it difficult for them to continue operating as usual. As a result, many digital agencies have been forced to lay off staff or shutter their doors entirely.

The second factor that has contributed to the increase in digital agency salaries is the high turnover rate of employees within the industry. Due to the nature of digital agency work, which is often fast-paced and high-pressure, many employees end up burning out quickly. As a result, digital agencies are constantly in need of new staff, which drives up the demand (and cost) of hiring.

The third factor that has contributed to the increase in digital agency salaries is the inflation of some job titles and linked salaries. In recent years, there has been an influx of new job titles into the digital agency world, such as “growth hacker” and “content strategist.” While these new positions may be essential to the operation of a modern digital agency, they often come with inflated salary expectations. As a result, digital agencies are forced to pay more for top talent.

What are the implications of this trend?

What implications does this trend have for digital agencies? First and foremost, it is likely to lead to an increase in the cost of doing business. As digital agencies are forced to pay more for staff, they will need to raise their prices to cover their costs. This could price some digital agencies out of the market, as clients may be unwilling or unable to pay the higher rates.

Additionally, this trend could lead to a decrease in the quality of work produced by digital agencies, as they may be forced to cut corners to make ends meet. Finally, this trend could also lead digital agencies to increasingly rely on low-cost overseas labour, which could have a negative impact on both the quality of work and the working conditions of employees.

What do you think about this trend? Are digital agency salaries inflated? Or are they just catching up to the rest of the market?

Do you think that digital agencies are doing enough to keep their staff?

What can be done to help?

Well, agencies that tend to have a proper growth strategy, purpose and values tend not to see this as a big impact. Working with a digital agency coach can help here. Both in helping you work out the Purpose and Values of your agency but also your Mission, and how to get there.

A coach or mentor can help build your agency’s WHY and HOW that allows you to know WHO you need and when you might need them. They can also support you to help lead, manage and therefore retain your stars as well as part ways with those who don’t perform or meet your agency values.

Knowing the WHY, WHO and, with a strategy, the WHEN will allow you as an agency to reduce the impact of this trend on your agency and churn less of these expensive but awesome people that you hire.

Chris Simmance is The Agency Accelerator, a Digital Agency Coach with 10 years of leadership experience who knows how to get things done. With a no-bs approach to all things, he helps cut through the noise and get to the solution that works for you.