The British Advertising Industry Finally Faces Up to Its Talent Crisis

A lot of ink has been spilled about the Great Resignation, which has resulted in staffing shortages and a war for talent across the advertising industry. Now, research from the U.K. Advertising Association and think tank Credos has a cold, hard look at the reality. Gleaning insight from 20 HR bosses at brands and agencies, along with 70 senior marketers, a new report has revealed the number of people working in the industry fell 14% between 2019 and 2022. The research showed adland is failing to attract and recruit new talent following the height of the pandemic. However, it also uncovered shortcomings in developing and retaining current employees. Forbes’ Event Revenue Rises 60% as It Embraces Hybrid Formats Digital and data skills were reported to be the most in need by chief marketing officers and agencies. However, this was not unique to marketers, with 46% of businesses across the U.K. economy struggling to recruit for roles that require those abilities. This isn’t just a British problem; it’s a global one. The data comes on the heels of an extensive 2022 global study from the World Federation of Advertisers (WFA) that revealed nearly half (48%) of all advertisers, agencies, ad-tech companies and media owners believe the industry is facing its “worst-ever talent crisis.”In search of a long-term solution, the Advertising Association (AA) has developed a three-year strategy to get the U.K. sector back on its feet, with plans for a campaign to promote advertising as a career choice to young people and launch a hub for professional skills training. It will also consult businesses on best practice around hybrid work. The pandemic that has had a really big impact on how people work, and why people work.Alessandra Bellini, president, Advertising Association Encouraging people to choose advertising Leading the charge will be AA president Alessandra Bellini, who as chief customer officer at U.K. retailer Tesco knows from experience people are the lifeblood of creativity. She is calling for a cross-industry effort to solve the problem: “The pandemic has had a really big impact on how people work, and why people work,” she said during ISBA’s LEAD event in London in January. With the cost of living crisis added to the mix, she argued this has created a labor market that is tight and more competitive. “This is a global competition. And it's not unique to the advertising industry, which means that we need to really tackle these challenges proactively, we need to take ownership of the agenda, and we need to do something to really address it.” The industry is failing at the first hurdle: attracting new talent. In part, this is down to low awareness of advertising as a career option. Credos’ research found schoolchildren and college students do not prioritize advertising and marketing as a future career, in stark contrast to other professions such as teaching, medicine, banking, nursing and law.Encouraging young blood and career switchers to enter the industry is an especially marked need for the advertisers and agencies lacking digital and data skills. The Key to Retaining Agency Talent? Letting Them Leave In 2019, there were an estimated 3,500 hard-to-fill vacancies across advertising and market research companies. Human resources bosses expressed concerns to Credos and the AA that this number seems to have increased significantly since the pandemic, reporting increased gaps in roles calling for these proficiencies. To address this issue, the AA is planning a nationwide campaign to publicize how dynamic working in advertising can be. This would be targeted toward young people, schools and colleges, as well as the wider community. The aim is to make working in advertising and marketing a compelling career choice for people of all ages and backgrounds. Salary sticking point Poor salary progression is another factor impacting the industry’s ability to both attract and retain talent, with advertising salaries underperforming against comparable industries. Once adjusted for inflation, annual advertising spend has increased by 42% since 2011. However, average advertising and marketing salaries across junior and mid-level roles have decreased over the same period, noting respective declines of 4% and 10%. Poor salary progression is another factor impacting the industry’s ability to both attract and retain talent. During a panel discussion at LEAD, Julian Douglas, international chief executive and vice chairman at creative agency VCCP and IPA president suggested “decades of aggressive procurement” was driving costs,-and thereby salaries-down, within agency walls. He said there was a need for a conversation around how “good value, best talent” could drive business outcomes. Margaret Jobling, ISBA president and CMO at high street bank NatWest, said salary increases would follow when marketing teams learned to showcase their effectiveness internally. “We need to do a better job of articulating that as a business function," she said. Bellini noted salary was not the only thing holding the industry back. “Nobody can increase salaries overnight, but if we make people more skilled and upskill them to be better and more productive, then in turn we can probably encourage a higher level of salary as well,” she added. So, the AA will be working with the industry and U.K. government to build "defined development pathways, with a heavier emphasis placed on formal training rather than just learning on the job." Such schemes, said Bellini, will not only keep talent "in-house" but in-industry too. She explained: "We have been under-investing in our people for too long. Training budgets have been cut and there is a lack of clear development paths for people. Training and development underpin everything within this report; they are essential to effectively recruit and retain talent as they will make our industry a desirable one to join and an attractive one in which to remain." Finally, with the physical workspace knocked out of sync post-lockdown, the AA is asking members to share best practices for hybrid work to secure and keep employees. As it kicks off this three-year project, the AA is inviting agencies and brands to join its Talent Task Force steering committee, as well as sharing their own experiences to help build out frameworks for others.