Live Issue... Asian agency growth machines labelled 'sweatshops'

But some people have quit of their own accord, sources claim, because they were being worked too hard.

Too often, staff found themselves toiling into the early hours of the morning, say insiders. This is untrue, insists RMG Connect's regional president, Paul Davies. And Jit Hoong Ng, the agency's MD, says he would be "mortified" if his staff felt they were being exploited.

Even so, the question is still worth asking: have Asia's agencies become sweatshops in their rush to capture market growth? Tom Doctoroff, who runs RMG Connect's sibling JWT in Greater China, admits that the pressure on RMG is high. But he says that staff turnover is no more than 10 per cent and argues that the issue is not new, nor unique to one agency. "Agencies are being stretched as we move from a commission to a fee-based payment model. The workload is the same, but as fees have shrunk, we've had fewer resources to work with," he says.

The problem is no worse in China than elsewhere in Asia, insists Doctoroff. However, management issues in the mainland have exacerbated the problem. "Most Chinese agency leaders have been tutored in non-scale tactical markets incompatible with China, and have become their own worst enemies. Meanwhile, clients are demanding quick turnaround work, and their agencies are working like mad dogs to keep up."

The industry is growing faster than its ability to staff up in China, observes Mark Patterson, North Asia CEO of GroupM. Advertisers review frequently and new brands are launching all the time. Pitches - the most labour intensive of agency tasks - are relentless (there are four media pitches a week in China). But hard work is all part of the "pleasure and pain" of advertising, says Patterson.

"It goes with the territory of a 'work hard, play hard' business," he says. "And just because someone spends all hours in the office, it doesn't necessarily mean they're the best performer. In Japan, it's good to be seen to be working long hours to impress your boss."

Agencies three-quarters full come 10pm are not unusual in most markets, say agency heads, but young staffers are often using the office as "an extension of their living room".

One planner at a Malaysian media agency is under no illusions that a hefty workload comes with the job. What irks him is when that load is distributed unfairly.

"At some agencies, teams are working longer hours than others because accounts are assigned by billings," he says. "Three people will work on a RM20 million account regardless of how complicated that business is to handle. Bosses are looking at profit margins, not service quality, and have failed to manage client expectations as well as their staff."

Of course, young staffers aren't the only ones to feel the strain. Jaswinder Kaur, the outgoing CEO of Starcom Singapore is said to have quit (Media, 6 March) partly because of work pressure.

"The reality of Asia is that you could work 24 hours a day, seven days a week, if you wanted to," says Chris Thomas, CEO of BBDO Asia. "The important thing is to focus on the areas where you can make a difference, and have a good assistant who knows your priorities. Evenings should be for family, not conference calls to New York."

GroupM's Mark Patterson concludes: "One year in Asia feels like three in Europe. But there's no point whinging about it. If it keeps getting you down, I'm afraid you're in the wrong business."