Recruiting has always been a challenge for Critical Mass, a Calgary-based agency specializing in on-line marketing. But when Dell Inc. came to the company with a large, urgent project, the situation went from bad to dire.
To meet the job's demands, Critical Mass actually went to rival agencies, begging to borrow their contractors.
"We're so busy and we're looking for so many people. Our needs are urgent and we can't seem to turn people around fast enough," said Julie Walychow, the company's recruiting manager.
While traditional ad agencies complain that ad schools are churning out too many bodies, on-line agencies say they are facing a severe talent shortage.
And agencies are deploying a variety of short-term tactics to get the bodies they need, as well as longer-term strategies aimed at getting ad students to think about Internet advertising, instead of print and TV.
The biggest problem is a lack of people in the marketing industry familiar with Micromedia Flash, a multimedia program becoming the primary tool for creating on-line marketing.
And it comes at a time when marketers are significantly boosting their marketing budgets.
Internet marketing now accounts for 4 per cent of marketing spending in Canada, according to a quarterly survey of marketing budgets compiled by the Institute for Communications and Advertising. But it's growing rapidly. In the fourth quarter of 2005, 6.3 per cent of marketing executives said they spent more than 15 per cent of their budget on the Internet, up from 3.3 per cent a year earlier.
"I think we're going to look back in history and see that 2006 was the year that . . . Internet marketing really came of age," said Mike Parker, managing director for Tribal Canada, the Internet division of DDB Canada.
Mr. Parker said that, with the rapid penetration of high-speed Internet access, Flash has gone from a fringe device to central to how marketers can make sites engaging.
"I'm not so worried about being able to deliver our business today. But looking down the road three, six, 12 months at this pace -- where am I going to get these people?" Mr. Parker said.
The situation is so severe that Ottawa-based Fuel Industries issued a press release last month that screamed: "We need more flash developers!"
"If we don't find more people, we're going to have to hook the creative tech team up to an amphetamine drip or open an office in New York," CEO Mike Burns said in the release. "And you don't want to see a flash developer hopped up on speed. It's not a pretty sight."
The company, which specializes in branded Internet games, has doubled in size over the past year to 65 employees, and expects to grow by another 20 per cent over the next two months.
Mr. Burns said he's trying to avoid opening a New York office and doesn't want to overwork his staff. He's hiring staff from around the world to fill out his ranks. Recent hires have come from India, England, Romania and Sweden.
At the same time, interactive agencies from other countries are snapping up Canadians. And some leave the industry altogether to bring their skills to the film and video game industries.
"These people are in high demand and really, they can go anywhere in the world. They don't have to stay here," said Dawna Henderson, chief executive officer of Henderson Bas.
The Toronto-based digital agency, which employs about 52, has been boosting its staff after recent business wins, but is still a couple of bodies short, Ms. Henderson said.
And she said project managers and account managers are asking for the kind of salaries they got at the height of the dot-com bubble in 1998 and 1999.
But while Internet marketing is growing by leaps and bounds, many young people going into the business remain stubbornly focused on TV ads, she said.
"They want to do a TV commercial that wins the international awards and makes them famous. . . . The television ad business is somewhat shrinking and there are just tons of jobs in the interactive space and it's hard to attract these people into our area," she said.
David Smith, a partner specializing in marketing recruitment at Mandrake Management Consultants, said that when the tech bubble burst in 2000, demand for Interactive marketing staff dried up and so did the supply. Now that the business is hot again, it can be a challenge to fill the jobs.
But he said there are qualified people to be found in Canada. The problem is that too many agencies run their own recruiting programs and would have better luck if they hired expert recruiters.
In Calgary, where the overall job market is red hot, Critical Mass is having a particularly hard time. Potential employees are being snapped up by oil and gas or construction companies willing to pay top dollar.
"We're definitely feeling the pressures of the Alberta labour market right now," said Evelyn Cutts, HR director for Critical Mass.
The shortage of qualified applicants in Calgary is one reason why Critical Mass opened a Toronto office last year. That space, with 60 employees, is already full. Most production staff -- about 260 people -- work in Calgary.
Another 30 employees in the United States -- all account managers serving the company's largely U.S. customer base -- bring the company's total staff to around 350. But the agency remains short about 12 flash experts, both on the technical and creative side.
As a result, its recruiting strategies have changed dramatically. Critical Mass is working more closely with design and technical schools to make sure grads are properly trained and familiar with the company.
It's even gone into Calgary high schools to get students interested in interactive marketing.
"Everybody's looking for the same people. We hear about a potential source for some Flash developers, but they've already been hit up by somebody else," Ms. Walychow said. "It's really making it very challenging for us."
Hiring tactics
Internet marketing agencies are struggling to attract enough qualified employees. Experts offer some tips:
Look outside the Internet: Mike Parker, managing director for Tribal DDB, says the company recruits many of its employees from agencies that don't specialize in the Internet.
"We've hired copywriters from traditional agencies -- people who bring perspective on connecting with consumers. And then we teach them the technology, the parameters of on-line," Mr. Parker says.
Borrow from your rivals: When things are especially busy, Calgary-based Critical Mass has resorted to calling contacts at other agencies and asking if they have spare contractors available for loan.
Focus on retention: Too many companies don't put enough effort into retaining their employees, says David Smith, a partner specializing in marketing recruitment at Mandrake Management Consultants. Every employee you keep is one you don't have to hire.
Think outside of Flash: If you don't have the bodies to get the job done in Flash, think if there are other ways to meet your client's needs.
That's something Henderson Bas has done from time to time, according to president and CEO Dawna Henderson.
Help students embrace the Web: Agencies say students are too focused on making TV and print ads, even though Internet marketing is booming.
"There's lots of students, but I don't know if they're as focused as we need them to be on this industry in particular," said Critical Mass recruiting manager Julie Walychow. The company is working more closely with design and technical schools.