The media accountancy company reported that during the last quarter, staff numbers continued to fall - by 4 per cent - and that employees who have kept their jobs are now more productive than ever.
Yet, despite the substantial drop in staff numbers, staff costs have only fallen 0.3 per cent. This indicates that agencies are either shedding low-paid staff or increasing the pay of those who remain.
The Willott Kingston Smith partner Mandy Merron added: "Also, when times got hard four years ago, the industry stopped recruiting graduates. This means that today decent middle managers are in shorter supply and can command more money."
However, adland's inability to cut its staff costs is eating into its profits. Marketing Monitor reveals that the average agency's operating profit margin has decreased by 2.5 per cent to 10.5 per cent.
Meanwhile, the media buying sector has reported very little change quarter on quarter; operating profit dipped from 15 per cent to 14.7 per cent.
But the sector remains the most profitable, ahead of the direct marketing and sales promotion sector, in second place with 10.6 per cent.
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