The cost of NOT hiring an event agency
Most companies have an event manager, some will have an entire events team. The question is, what is the most cost-effective internal setup to have for running corporate conferences and events?
Some people might assume that managing their event internally will work out to be less expensive than hiring an event professional or an event agency, but are they focusing on the ‘above the surface costs’ and missing out on those below the surface?
The cost of hiring has several variable and fixed factors. Costs that we will refer to as “above the surface” and “below the surface”.
When running internal or external company conferences and events, every business takes slightly different approaches, but most have the same monetary, communicational and team/relationship building objectives and goals.
The conception of the event starts with the purpose, the seed planted for the theme of the agenda, and then follows the logistics. Event agencies can bring more than just venue finding services and a supplier network; an agency can add value through insights, ideas and experiences that develop and transform your events.
Managing an event internally will put strain on resources by loading the tasks on to different departments. It will distract experts in their fields from the event content, messaging, or their own workload and spread thin a diverse skill set. This is an inefficient practice and doesn’t allow experts in production, event management or audio visual to focus on areas that would transform the event.
In the same breath, if you are relying on an internal events team, it means you are subject to an almost endless list of resources needed to complete an event/brief. The team will need training and experience in all the relevant fields of events management, and this can at times feel like an overwhelming strain on your resources.
Above the surface
There are many fixed costs associated with an internal events team, these include but are not limited to “the tip of the iceberg”:
Salary
Event manager salary £36,748 per annum
Event assistant salary £22,414 per annum (source: Glass door August 2022)
Holiday
PAYE
Sick days
Desk/office space
Overheads
In this article, we aim to uncover some of the less obvious but very real costs that come from NOT hiring an events agency. These we define as “below the surface”, under the tip of the iceberg.
Below the surface
1. Managing Risk
A huge part of planning that is often overlooked at internally planned events, is the importance of risk management and liability. It is not often the case that the internal event manager, however skilled, has the requisite experience in contract negotiations and ensuring that the financial liability of the company is protected. This is an imperative part of the process - if circumstances beyond the clients control jeopardise the event, an event agency will have done extensive negotiations with suppliers to ensure that the client is financially protected and that the event can be moved / numbers reduced. Other services like financial reporting, comprehensive budgeting and the delegate management to ensure pick up, add to this protection.
2. Training
Whether your event is going to be small or large, virtual or in-person, it will require a lot of hard work and attention to detail. Using an internal events team will require a huge amount of time dedicated to training staff on every aspect of event planning from the months prior all the way up to the live days. The list of skills needed are extensive and at times feel never ending, meaning you are playing catch up to experts that are already available at external agencies. Although you may have one point of contact within Dynamic Events, there is an entire team of event professionals amounting to years of valuable, international and diverse experience.
3. Getting caught up in internal processes/politics
Any internal team will be subjected to the internal processes and politics of the company they represent, this is natural. It can mean that they get drawn into other areas of their work instead of being able to focus on the event. This can lead to stress, deadline delays and ultimately the event can take a backseat. When you hire an external agency like Dynamic Events - the event becomes their entire raison d'être, allowing your team to make the best use of their time and efforts.
4. Rigidity
An internal events team will have rigid/fixed and consistent costs, in comparison to the malleable cost of hiring an event agency. The management fees can be negotiated and tailored. You might be concerned that event planners will propose something that is fixed in place. The first step in event planning is to listen to the client, to their needs, objectives and budget. Flexibility and collaboration are a critical part of an event planner's mission, allowing the client as much input as they want.
5. Delegate communications / management
No matter what the size of the event, understanding how to manage and communicate with attendees effectively, so that they understand the event, why they should attend and all of the logistics, is overwhelming. There are so many tools that aid this, but it is all about knowing where to begin and having the foundations in place - ready to go. An event agency will have tried and tested all tools, and with the advantage of ‘economies of scale’ can keep costs down. This will ensure that delegate communication and management is a smooth process for all involved rather than an added hindrance to the overall purpose of the event. These tools consist of licences on registration, event apps and virtual/hybrid event platforms, resources to cross check bedroom reservations with registrations, and technological solutions like check-in software, that may not be accessible to your internal team from the get-go.
6. Working as an extension of your team
Agencies are there to supplement your team rather than take away from it. The mission is to become part of your team's strategic thinking and compliment that with fresh ideas and suggestions, where internal processes can stagnate.
7. A black book of supplier contacts
Professional event agencies will know the right people, with the right skills, based on their client’s needs. They have a network of skilled professionals they have already worked with, such as caterers, AV technicians, hotels etc. Even with short notice demands, outsourcing to an agency allows you to save time, make it easier for you and often save a valuable amount of money with their buying power. Dynamic have worked on international conferences for 25 years, with event staff that have travelled the world many times over building strong relationships and trusted partnerships.
8. Taking away the stress
Event management is one of the top 10 most stressful jobs in the world. Out of all the factors to consider when deciding between a DIY event or delegating to a professional team, this one is the most crucial. The amateur organiser may be worrying about anything that could happen or going wrong instead of just enjoying the event and focusing on customers and business development itself. A professional event planner will focus solely on your event, dealing with all the logistics, taking away the headaches that result from organising big and complex events, in order to make sure their clients achieve the objectives set out in their brief. Things as simple as shared timetabling to keep the projects on track, setting out deadlines for key milestones for all stakeholders and being actively reminded of what is due and when helps to lighten the load. Dynamic works in a way that references timetables during regular planning calls with your dedicated point of contact.
9. Time
Time is the most pertinent ‘invisible cost’. It is the most valuable commodity you can have in the build up to a major event, and likewise, a lack of time is the most common reason for an event's failure to meet original expectations. Invariably, in the business of events, plate spinning begins when liaising with a myriad of stakeholders. The unenviable task for an internal events manager is trying to unify the urgency and communicate the importance of these deadlines, all the while making sure every other possible aspect of the event planning is getting the attention it requires. This is where an event agency can come in and prove their worth to you, essentially giving you your time back. The agency takes on those challenges head on with precision and authority, completely focused on your timeline and goals making sure the external parties are kept in line with agreed servicesand deadlines - all without the internal burdens and pressures mentioned in this article.
10. Delaying the inevitable
Typically, when an event is managed internally, they often turn to seek external help. Due to a mixture of the points mentioned above, an event normally hits a few bumps in the road, and in time an issue will become pressing enough that some external expertise is required. Sadly, this often happens later in the process, and closer to the launch of the event, meaning that you can be subject to limited options, higher than average quotations for services, and a ‘one size fits all’ solution rather than the tailored fit you had been working toward.
In summary, there are the obvious costs to you as a buyer from the outset when budgeting your event. However, when you consider the points above and the larger picture of the event, the costs “below the surface” of not hiring an experienced conference and event management agency to add value to your event will fundamentally outweigh the initial investment. When you balance the cost of training, internal tasks and responsibilities, resources, negotiations, lack of contacts, time and a need for local support in an international destination, against the added value of using an agency like Dynamic Events the choice is evident.
We guide our clients through their entire event journey which begins by listening and learning what a successful event means to them. From here we support translating their objectives into an event strategy and apply our expertise and professionalism through every stage and challenge to the ultimate delivery. We have the tools, knowledge and network to ignite the wow factor for your conference, encourage engagement and make sure your event is a success.
We assume responsibility for the complex and time-consuming event tasks, enabling you and your team to focus on developing content and managing your day-to-day workload. As well as your DE event team, you will also have access to the rest of our team with all 150 years of collective knowledge, expertise and experience.
