It’s A Numbers Game: How Creative Teams Can Manage Risk And Maximize Results

The creative industry is a blast. You get to work with smart, talented people, tackle exciting projects, do what you love, and maybe even channel a bit of Mad Men with some office quirks.

But there’s a catch: money. Like any other industry, creative professionals must play (and win) a numbers game to survive—and it’s not easy.  

Consider this: HubSpot reports that 61% of marketing agencies are between five and nineteen years old—a lifespan that’s just a little longer than that of a dog. Ouch.  

Or take labor as an example: it can account for up to 70% of your total business costs. In most industries, cutting labor costs might seem wise in times of duress, but the creative field is hyper competitive, so a seemingly simple cut could have long-lasting negative repercussions. In one survey, 96% of creatives said they’d feel comfortable leaving their job and were confident they could quickly find another. So, cutting talent could leave you…talentless.  

And for creative operations pros, it’s all about managing limited billable hours and various software tools to generate value, all while handling branding changes, licensing costs, and staffing challenges. Oof. We’re talking about employee utilization rates and other quantitative measures of being a “creative” here people—it’s serious business.   

Never fear, we’re here to help. Let’s explore some key factors that can make or break your creative numbers game. 

1. Talent Turnover 

Talented creatives—like designers, editors, and copywriters—often chase better opportunities, leading to high turnover. That’s why the annual turnover rate for creative agencies is a staggering 30%.   

*Yikes.* 

Meanwhile, replacing a team member costs about 43% of their salary in the U.S., and 26% in the U.K. Replacement costs add up fast, making turnover a costly expense indeed. 

While you can’t predict who’ll stay or go, you can mitigate these costs with a few strategies: 

Foster Employee Growth And Development 

A strong company culture can significantly reduce turnover. While salary and benefits matter, the number one reason creatives leave is a lack of growth opportunities. Prioritizing career development—even in high-stress, fast-paced environments—can foster loyalty and pay big dividends in the long run. 

Streamline Onboarding 

Poor onboarding can amplify turnover’s impact. 80% of new hires who receive poor onboarding plan to quit. Complex processes slow things down and increase mistakes. Simplifying onboarding operations and choosing user-friendly tools can reduce onboarding time and help new employees hit the ground running.

2. Licensing and Font Mangement

Creative projects depend on design elements like fonts, stock images, and music—all of which come with licensing costs. Managing these licenses properly is crucial to mitigate legal, financial, reputation, and other risks. 

Here are a few risk areas worth consideration, based on research we conducted for our report, The State Of Risk In Creative Operations: 

• Proper Policies Prevent Long-Term Problems 

65.7% of designers bring personal fonts into the professional work environment. While these fonts may enhance creativity, they can introduce licensing issues, as not all personal fonts are cleared for commercial use. This practice complicates font tracking and usage, and exposes companies to expensive legal and compliance risks. The danger of introducing personal fonts into a business network highlights the need for proper font management policies and systems to ensure compliance and reduce liabilities. 

• Project Reviews Take Time 

31% of teams spend 6-11 hours per week auditing projects, while 30.6% spend 3-6 hours. Streamlining project reviews can save significant time. Tools like Connect + Insight allow teams to scan Adobe files for font usage and licensing risks, offering recommendations before projects are produced. Reducing the manual effort involved can lead to significant time savings and boost the efficiency of creative operations. 

• Spreadsheets Aren’t Fit For High Volume, High Maintenance Data  

49% of creative organizations still rely on spreadsheets and other manual systems to track font licenses, a method that can be prone to human error and inefficiency. While it may seem manageable at first, this approach can lead to overlooked license expirations, unlicensed font usage, and other costly compliance risks. As creative projects scale, organizations face increased font usage risks without automated font license management solutions. 

Speaking of automation to save time and improve accuracy…also consider Font Auto-Activation vs. Manual Activation.   

Manual font activation is slow and inefficient. On average, auto-activation saves teams about 34 billable hours per year, per user. At $75 per hour, that’s $2,550 in savings per person! Auto-activation also improves license compliance and reduces the risk of surprise fees or legal disputes. 

Leadership must meet the challenges of font activation and licensing with efficiency and precision, to keep billable hours from spiraling out of control. Strategic creative operations can control billable hours by incorporating effective tools and outlining clear policies and procedures. 

3. Onerous Overhead 

Managing overhead costs is essential for profitability. Let’s focus on two major areas: 

Tech Stack Optimization 

Creative teams often struggle with their tech stack. No one wants to admit they chose the wrong tool, and researching new options is a hassle. But optimizing your tech stack is crucial to empower your team and reduce financial strain.  

Companies with fewer than 500 employees average 172 applications in their tech stack. Regularly assessing and optimizing these tools can have a big impact on overhead. 

We’ve talked about optimizing creative tech stacks in the past, and the key lesson is understanding that to optimize is to find the best set of tradeoffs. That’s why identifying what you can improve in your tech rather than what you can cut—but end up buying again later—creates real value in your tools. The expense of your tools will always feel high, so it’s vital to compare the expense to the value of time saved, quality delivered, and operations streamlined. 
 
Rethinking Utilities 

Class A office space and on-premises servers may no longer fit the needs of modern creative teams. Consider more efficient options like coworking spaces or work-from-home stipends, and swap out servers for cloud storage. 

For instance, moving from server-based font storage to the cloud could save the average creative team $20K annually. You can calculate your own potential savings in our worksheet here.