The gender pay gap has fallen across agencies but the ethnicity pay gap has increased, according to the latest figures from the Institute of Practitioners in Advertising (IPA).
White employees earned 21.6% more than their non-white colleagues last year, up from from 21.1% in 2022.
The gap is wider in creative agencies at 23.6%, compared to 17.6% at non-creative firms.
However, there was more positive news when it came to gender equality, where the pay gap had fallen to 15% last year, down from 23%.
The gap is higher in creative and other non-media agencies at 21%, than it is in media agencies, where men get paid 9% more.
The average age of employees also increased marginally from 34.3 to 34.6 last year.
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Overall staff turnover decreased 1.2% to 31.2%.
Most agencies (54.8%) continued to use a hybrid model of three days in the office and two days remote while an additional 27% switched to q two-day office/three day remote model.
IPA director general Paul Bainsfair said: “After a dip in employee numbers during Covid and then a sharp recovery last year, we are now seeing a levelling out. As such, there are less dramatic improvements this year across key metrics, through some progress in some areas such as the increase in women at the most senior levels of our business, which is most welcome.”
“What is clear, however, with overall numbers of people from non-white backgrounds in the C-suite both declining marginally, is that we mustn’t lose momentum on the great work our agencies have invested in over the past few years to make our business more diverse and inclusive.”
IPA diversity and inclusion director Leila Siddiqi added: “While the percentage of people from non-white backgrounds at 23.3% of our business, is significantly higher than the ONS’s national figures for the UK’s percentage of 18%, there is a stalling of progress this year in terms of the recruitment, progress and remuneration of ethnically diverse talent”.
