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.
6. 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:
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