Engine Group UK CEO Debbie Klein on thinking outside the remuneration box

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Engine Group UK CEO Debbie Klein reveals how to think outside the box when starting out on planning new models of remuneration. This presentation was shown at the IPA's Performance Adaptathon in …

Engine Group UK CEO Debbie Klein reveals how to think outside the box when starting out on planning new models of remuneration. This presentation was shown at the IPA's Performance Adaptathon in London on 8th July 2014. Watch the video: https://www.youtube.com/watch?v=G4zlmErJHOY. Find out more about ADAPT at http://www.ipa.co.uk/performance and join in the conversation on Twitter using #ipadapt.

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  • This is the Kingston Smith 2013 ‘Financial performance of marketing services companies’ survey

    The top 50 advertising agency data is a bit blurred as it is typically independent businesses that list their performance. Most of the networks don’t split them out, hence the inclusion of the Network Group data.
  • Assumes salary costs of - £57.5k
    Overheads of £25k

    Therefore
    Fat Man profit is £7.5k per employee

    Average Man profit is £12.5k per employee

    Fat Man profit is £27.5k per employee


Transcript

  • 1. Getting paid for what clients really value Tuesday 8th July 2014
  • 2. Operating profit margin by sector 11.2% Top 50 UK advertising agencies 8.2% UK Digital industry 2013 KS W1survey ‘Financial Performance of Marketing Services Companies’ 8.0% UK Direct Marketing and Sales Promotion 11.8% Global Network Groups Source:
  • 3. Gaining margin strength 8% 25%13% Gross income per head Margin £90K £110k£95k
  • 4. Packaging and pricing for value