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Agency staff numbers up and turnover down in new IPA census

The IPA’s 65th annual agency census shows that staff numbers in both media and creative agencies are up, while turnover is down to 24.1% (from 31.2%). This is likely to be a reflection of tough economic conditions: freelancing is an increasingly precarious option, so people are more inclined to go PAYE and then stay put.

Hybrid working could be key to these retention levels, with 66.1% of agencies settling for three days in the office and 16.5% for two days. Only 5% of agencies demand four days and 2.5% still insist on the full five days.

The increase in numbers is noteworthy but still tiny, at just 157, taking the total to 26,787. Worryingly, young people are less likely to choose advertising as a career – under 25s are on the decline, bringing the average age up to 35.2 years from 34.6 years. Non-white employees are up 0.5% to 26% in media agencies, and by 1% in creative to 22.6%.

Diversity and inclusion continues to make agonisingly slow progress, with c-suite women up by 2% to 39.9% while c-suite non-whites are down by 0.5% to 10.5%. Meanwhile, pay gaps are increasing. The gender pay gap in favour of males has increased from 15.2% in 2023 to 19.7% in 2024, and the ethnicity gap is 31%, up from 21.6% the previous year.

Leila Siddiqi, director of D&I, IPA, said: “This year’s census findings show that there continues to be a lack of progress in terms of the progression and remuneration of ethnically diverse talent, and the remuneration of women. Bold leaders who have the foresight to be transparent and galvanise their teams to take an inclusive approach after taking a good look at what their data is telling them are likely to emerge as trailblazers with future-ready agencies.”

Paul Bainsfair, director general of the IPA, said: “It is welcome news that the percentage of women in C-suite positions continues its positive trajectory, and that the proportion of women and people from a non-white background entering the business is strong. We are, however, seeing that there are areas where more focus could be applied; particularly with regard to ensuring the progression of people from non-white backgrounds and women up the ladder, which will in turn help to reduce the ethnicity and gender pay gaps.”

 

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