Is Your Agency Overstaffed or Understaffed?

The Signs You’re Overstaffed (Even If You Feel Busy)

Most agencies don’t actually know if they’re overstaffed or understaffed—they just feel the symptoms. Projects drag, deadlines slip, and margins tighten. But these issues rarely come from headcount alone. They usually come from unclear structure.

You might be overstaffed if your team has meetings to prepare for meetings, projects move through too many hands, or you’re producing content no one uses or measures. Overstaffing grows in the gaps created by legacy processes, unclear responsibilities, and the familiar habit of doing things “the way we’ve always done them.”

The Signs You’re Understaffed (And Burning Out the Team)

Understaffing shows up differently but just as clearly. Your team is always in reactive mode, your best people carry the weight of every deadline, and new opportunities get ignored because survival takes priority. When capacity is stretched thin, creativity suffers and strategic thinking disappears.

The Real Question: Do You Have the Right Structure?

Headcount becomes a problem when structure is unclear. The healthiest agencies assign every role a purpose, clear accountability, and measurable outcomes. Without that, teams drift, duplicate work, or step on each other’s responsibilities.

Before making any staffing decisions, agencies should recalibrate: define responsibilities, remove duplicated efforts, map workflows, and ensure every role ties directly to outcomes—not activity.

Why Agencies Misdiagnose the Problem

Leaders often make staffing decisions when they’re stressed—after losing a client, landing a big one, or facing a sudden workload spike. But emotional decisions lead to cycles of over-hiring and under-hiring. Accurate decisions come from assessing real capacity, efficiency of systems, and the quality and type of incoming work.

The Sweet Spot: Lean, Aligned, and Purpose-Driven

The strongest agencies run on three principles: no busywork, no unnecessary layers, and no guessing. When teams know what matters most, they stop spinning and start executing. This clarity improves output, margins, and culture.

The Bottom Line

Most agencies don’t actually have staffing problems—they have clarity problems. When work is defined, roles are aligned, and the noise disappears, the real picture becomes obvious. A clear agency performs better, moves faster, and creates an environment where teams thrive.