FLSA Solution: Cut Your Creative Staff

Big changes to the Fair Labor Standards Act (FLSA) will take effect on December 1, 2016. That means you have the first half of the school year to: (a) get as much overtime out of your current employees as possible while you still can, and (b) figure out how the heck you’re going to make things work when the new rules go into effect. 

Here’s the issue in a nutshell: you won’t be able to afford to keep doing things the way you do them today. 

We all know that there’s no such thing as a 40 hour workweek for employees in collegiate athletics. Especially not for employees at the lower end of the pay scale. Right now, you don’t have to pay overtime rates to professional, administrative or executive employees whose salaries are $23,660 per year or more. But come December, that threshold jumps to $47,476 per year. So here’s the question: can you survive without all the overtime hours your lower-paid employees currently work, or can you afford to pay them a lot more in the future? 

It’s not like you have a bunch of extra money laying around. And if you’re a Division I school, you may already in a budget crunch thanks to recent changes related to food service and scholarship rules.

Unfortunately, your practices, games, and related activities are not going to magically start fitting into a tidy little 40 hour workweek…no matter how many of you write letters to Santa. 

Something’s gotta give.

Here’s our advice: cut your creative staff.

Yep. You heard that right. 

Drastic times call for drastic measures. 

So yeah. Your graphic designer. Your video production specialist. Send’em packing.

We’re not saying you don’t need marketing support. Of course you do! It’s just that you don’t need to keep those individuals on your staff as yet another piece of your salary and overtime puzzle. And even if your marketing team isn’t working overtime, we all know they’re still a likely target when budget cuts come around.

The way we see it, you’ve got 3 alternatives to consider.

#1 – Hire Freelancers

If you’ve never tried it before, this might sound like a good idea. But most of you who have been around the block once or twice are cringing right now. Most athletic departments haven’t had a lot of luck with freelancers providing consistently high-quality work that’s on time and on target. Unless you have a freelancer who has worked with you before or who came from the collegiate athletics marketing industry, you’ll probably find they lack the expertise and insight you’re looking for. On the other hand, if you’re lucky enough to have found a really great freelancer, that person is probably working a lot more than 40 hours for you at an annual salary that’s lower than the new FLSA threshold…which means in December, you’ll have the same problem with your freelance rock star as you would with your own in-house staff.

#2 – Two Words: Student Internship

Hey, look around. In your neighborhood, there’s no shortage of young soon-to-be-professionals eager to build their resumes and score some real-world experience. And most of them don’t want to work anywhere close to 40 hours a week anyway. Assembling a low-cost creative staff will be like shooting fish in a barrel! What could possibly go wrong? Well, other than lack of experience, inconsistency, the need for a lot of oversight, not having any of the aforementioned industry expertise, some pesky rules or limitations… Reality check: you get what you pay for. There’s a reason you haven’t relied on this type of manpower to serve as your creative staff before. Sure, you may have some top-notch students who help you out from time to time, and that’s great. But as a year-over-year strategy, trying to rely on them to fill the gap FLSA is about to create won’t earn you a barrel of Gatorade over the head.

#3 – Outsource It

If only you knew somebody with a wealth of industry experience, mad design skills, a deep bench of talent, and serious strategic chops that you could hire and rely on without having to even think about overtime or paying a higher salary. Oh, wait. You do. All joking aside, Old Hat can provide everything you need from a creative standpoint. From design to video production, project management, strategic planning and copywriting, we offer a full range of creative services. We’re good enough, we’re smart enough, and doggone it, people like us. If you don’t have your dream team in place right now, take them off your payroll and let us be your creative staff instead. Want to have a designer right there on campus with you? No problem – we can be the one to hire them, pay them, and worry about their hours, plus we’ve got the capacity to absorb any excess work. 

Or don’t cut your creative staff. Augment them the smart way.

If you love your current creative staff or freelancer, don’t fire them just because you can’t afford to pay them enough to meet all your needs. I mean, really. Do we come across as that callous or short-sighted? (For the record, we’re neither.) Instead, let us augment your team and handle all those extra hours you can’t afford to pay them for. Old Hat can provide you subscription-style creative support that will cost you a lot less in the long run than paying overtime rates or higher salaries, while delivering the highest quality results. We’ll work with you to come up with a plan that gives you all services you need, when you need them. We’ll even dedicate somebody to becoming your brand expert. Everybody wins! Want to talk it over? Give us a call.

 

Comments

Craig Hornberger (not verified)
While I believe outside agencies like yours have their place, I think they are seldom the best or most affordable answer to meeting the day-in/day-out design needs of most athletic departments. The real value (advantage) to an in-house design team is having highly-trained professionals on staff who can generate and manage a wide range of design needs on a daily basis and who understand a particular institution's fan base and brand inside-and-out. They live it every day. I also am disappointed that a company like Old Hat is not championing the cause of higher wages for college sports graphic designers who are historically underpaid and often under-appreciated for their talent and hard work. By encouraging schools to fire their creative teams, you are hurting your own industry.
Zac Logsdon
Thank you for your response, Craig. I appreciate you taking the time to provide feedback. I will reiterate what I state in the article which is that, "If you love your current creative staff or freelancer, don’t fire them just because you can’t afford to pay them enough to meet all your needs." What some people may not realize is that I was once on an internal creative staff myself. And if someone had advocated that I get fired, I would have been quite upset. However, the FLSA rules are estimated to have a $1.5 million impact to the average mid-major athletic department. While some can absorb that, others will have to make cuts. That's just the reality of the situation. I would love to think that rather than cutting anyone, departments would increase everyone's wage to the new threshold. I just don't believe that's realistic. Departments will have a greater need than ever to get fans in seats to increase revenue and honestly, I've never seen a situation in which using Old Hat wouldn't save an athletic department vast sums of money over having in-house creative. I've run the numbers many times and the fact of the matter is, a department could save themselves a lot of money by using Old Hat instead of having a large in-house crew. We can't forget that the mission of an athletic department is anything other than educating the student-athlete and giving the opportunity to as many young people as possible to compete and get an education. The FLSA rules are going to have a major impact whether we like it or not. We are simply recommending an option that will help contribute to a department's ability to continue that mission.
Steve A. (not verified)
Zac, Do the new FLSA rules not apply to your organization? How can you provide a more cost effective alternative when you will have the same issue? The FLSA rules may force schools to restructure how they do things but do you really think people will believe they can do something cheaper by outsourcing it (to an American company)? An organization like yours is great for a program that doesn't have the knowledge or skill-set for a particular project but it would not be cost effective to eliminate an entire internal department and outsource all of the work. It's never cheaper to pay someone else to do something you are capable of doing yourself. Sure you would probably give the school a great deal up front but once they've eliminated their department you would have total control and could charge anything you wanted. Then when the school decides to bring the operations in-house again they will be faced with all of the rehiring costs. I understand you want (perhaps need) to drum up business but I think you are way off base with this tactic. Steve

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