Media sector growth and innovation slowing as recruitment woes worsen

The majority of media businesses have found it difficult to recruit talent over the last year, with more companies turning to freelancers and contractors for greater flexibility, according to leading audit, tax and consulting firm RSM UK.

According to RSM’s latest survey* it found that 84% of media businesses say it has been challenging to recruit new staff over the last 12 months, a stark increase from 63% the previous year. Almost two-thirds (62%) are planning to hire freelancers and contractors over the next year and just under half (46%) are planning to recruit more workers. Only 2% of those surveyed had no plans to recruit over the next 12 months.

These plans to hire come amid the changes to employers’ National Insurance contributions (NICs) from April, which 61% of businesses said would impact them. To cover the increased costs from the rise in employers’ NIC and National Minimum Wage, a third (33%) said they would reduce staff work hours, 29% would place greater restraint on wages and 29% would make redundancies.

David Blacher, Partner and Head of Media industry at RSM UK said: “Recruitment woes have fast become a widespread issue in the media sector. It’s clear that increasing headcount is a priority for media businesses, but finding the right people with the right skills remains a huge obstacle. The war on talent, which shows little sign of easing, will have a detrimental impact on their ability to grow and innovate, hindering the sector’s competitiveness on the global stage.

“While rises in staff costs aren’t putting media businesses off from recruiting, gone are the days of big wage increases. Instead, businesses are exploring other ways to attract and retain staff, including share option schemes as a more cost-effective way to reward employees. Media businesses are turning to more contractors and freelancers too. While this has long been a trend in the sector, due to the nature of work which tends to fluctuate, this trend has increased at pace. It could be that the recent changes to employers’ NIC rates have also encouraged employers to focus on freelance staff. Hiring of these workers will likely continue, as businesses look for increased flexibility in their workforce and as a means to manage cash.

“The government recognises the UK’s creative industries as “world-leading”, earmarking it as a priority, high-growth sector within its Industrial Strategy. But to achieve that, it needs people. Government plans to tighten immigration rules will be particularly damaging for the media sector. At a time when businesses are already struggling to fill the skills gap, they can ill-afford to have another barrier in place. The industry would hugely benefit from further investment in developing a skilled workforce in the UK, but access to overseas talent is also key.”

*150 media businesses, surveyed between 9-17 April 2025.