2023 IPA Agency Census: Unraveling the Fabric of Diversity and Inclusion in UK Advertising

In the ever-evolving landscape of the advertising industry, the Institute of Practitioners in Advertising (IPA) agency census stands as a beacon of transparency, shedding light on the diversity and inclusivity practices that shape the UK advertising landscape. The 2023 census unveils a tapestry of progress and challenges, offering valuable insights into the industry’s commitment to fostering an equitable and inclusive environment.

Gender Representation and Pay Gap: Strides Forward, Yet Miles to Go

The census reveals a gradual yet noticeable improvement in gender representation within executive management roles, with the proportion of female leaders rising from 37.5% in 2022 to 37.9% in 2023. This incremental progress signals a positive shift towards a more gender-balanced leadership structure.

Accompanying this encouraging news is the narrowing of the gender pay gap, which has decreased from 17.4% in 2022 and 23.3% in 2021 to 15.2% in 2023. While this reduction is a testament to the industry’s efforts to address pay disparities, the remaining gap highlights the need for continued focus on achieving equal compensation for equal work.

Ethnic Diversity and Representation: A Call for Renewed Commitment

While the census reveals a marginal decline in the overall percentage of employees from non-white backgrounds, from 23.6% in 2022 to 23.3% in 2023, it is the underrepresentation of ethnic minorities in executive management positions that raises concern. The proportion of non-white individuals in these roles has remained stagnant at 11%, indicating the need for concerted efforts to promote career progression and leadership opportunities for underrepresented groups.

However, there is a glimmer of hope in the increasing representation of non-white employees at the entry and junior levels, rising from 33.3% in 2022 to 35.6% in 2023. This suggests that the industry is making headway in attracting diverse talent at the early stages of their careers, laying the foundation for a more inclusive workforce in the future.

Ethnicity Pay Gap: Addressing Systemic Disparities

Despite the overall reduction in the gender pay gap, the census unveils a persistent ethnicity pay gap, with white employees earning 21.6% more than their non-white counterparts. This disparity, which has increased from 21.1% in 2022, underscores the urgent need for proactive measures to dismantle systemic biases and ensure equitable compensation across ethnicities.

Furthermore, the pay gap is more pronounced in media agencies (23.6%) compared to creative and other non-media agencies (17.3%), suggesting the need for targeted interventions within specific agency types to address this disparity.

Workforce Dynamics: Navigating Change and Adaptation

The census reveals a slight decrease in overall staff turnover, moving from 32.4% in 2022 to 31.2% in 2023. This stabilization in employee retention may be attributed to the ongoing impact of the COVID-19 pandemic, which has prompted a shift towards remote and hybrid work arrangements.

The number of full-time employees in agencies has also experienced modest growth, increasing from 24,545 in 2022 to 24,910 in 2023. This expansion indicates a gradual recovery and adaptation to the evolving market landscape.

Hybrid working models continue to dominate the industry, with 54.8% of agencies adopting a three-day office/two-day remote model and 27% following a two-day office/three-day remote model. This reflects the industry’s ongoing commitment to flexible work arrangements, allowing employees to strike a balance between work and personal life.

The average age of employees has also seen a slight increase, moving from 34.4 years in 2022 to 34.6 years in 2023, with 7% of the workforce now aged 50 or over. This gradual shift towards a more experienced workforce composition may impact skill gaps and the need for continuous training and upskilling to keep pace with industry developments.

Industry Perspective: A Call to Action for Continued Progress

Paul Bainsfair, director general at the IPA, emphasizes the importance of sustained efforts to promote diversity and inclusion within the advertising industry. He acknowledges the progress made in gender representation and pay gaps but highlights the need to address the decline in ethnic diversity and representation at senior levels.

Leila Siddiqi, director of diversity and inclusion at the IPA, expresses concern about the stalling progress in the recruitment, progression, and remuneration of ethnically diverse talent. She stresses the need to identify areas requiring attention and implement targeted strategies to accelerate progress.

Conclusion: Building an Inclusive Future for UK Advertising

The 2023 IPA agency census provides a comprehensive snapshot of the diversity and inclusivity landscape within the UK advertising industry. While there has been marginal progress in some areas, such as gender representation and pay gaps, the decline in ethnic diversity and the persistence of ethnicity pay gaps indicate the need for continued vigilance and targeted interventions.

The industry must remain committed to creating a more inclusive and equitable environment that embraces diverse talent and promotes fair and equitable opportunities for all. This means addressing systemic biases, implementing transparent and merit-based recruitment and promotion practices, and fostering a culture where everyone feels valued and respected.

By embracing diversity and inclusion as core values, the UK advertising industry can unlock its full potential, drive innovation, and create campaigns that truly reflect the vibrant and diverse society it serves.