Human resources is a critical factor impacting agencies’ decisions to expand their digital solutions.
In a recent survey conducted by Sonnet of 90 agency leaders and founders, 38% of respondents indicated that HR costs were either very or extremely significant. This statistic underscores how pivotal managing HR costs can be for an agency’s growth and competitive edge in the industry.
This blog will explore the significance of HR costs in agency expansion, how they affect the decision-making process, and the strategies agencies can adopt to mitigate these costs. We’ll share insights from our own experiences at Sonnet and provide recommendations to help agencies navigate these challenges effectively.
Human resources costs encompass salaries, benefits, training, and recruitment expenses. For agencies, these costs can quickly add up, making it challenging to allocate sufficient funds for innovation and expansion.
High HR costs can have a direct impact on an agency’s ability to expand its services. Agencies that struggle to manage these costs may find it difficult to innovate or take on new projects, which can affect their growth and competitiveness.
To overcome these challenges, agencies need to be flexible and be strategic in their resourcing solutions. Here are some strategies that can help manage HR costs effectively:
Based on our experiences and the insights from our survey, here are our recommendations for agencies looking to manage HR costs while expanding their digital solutions:
Managing HR costs is important for agencies looking to expand and stay competitive. By being flexible around their resourcing strategies and forming strategic partnerships, agencies can balance cost and quality, driving growth and innovation.
We’d love to hear your thoughts on how HR costs impact your agency’s decisions. Share your experiences in the comments, and don’t forget to subscribe to our newsletter for more insights and updates.
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