Employees Archives - Page 7 of 7 - Agency Management Institute

How do you train your account executives?
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How do you train your account executives?

Account Team, Employees

How do you train your account executives?

If you were being truthful about account executive training in your agency -- you just said, baptism by fire. We hired them and on their first day...took them to a client meeting and it was off to the races. The good ones thrive and survive and the ones who can't cut it, fade away. But we're lousy at training new people. That's an ugly truth about our business. And it's not done out of disregard or cruelty. It's just the reality for small and medium sized advertising (marketing, PR, digital, interactive) agencies. There's no training program in place and we're hiring them because we need their boots on the ground. Now. In our two-day Account Executive Training Bootcamps (check our AE Bootcamp schedule here) we ask the participants to create a list of the top things a client expects of them and the top things the agency owner expects of them. Guess what -- they get it wrong. No big surprise considering we throw them into client work and usually, if they're new to the business, they begin managing project details, taking orders and creating a good relationship with the client. So they think that's at the core of their job responsibilities. Those things are certainly part of the job -- but would they be on your list of the top five things you want from your account executive? I get that you don't have a developed in-house training program and can't take the time to create one, let alone implement it. But, if you're not going to do that -- at the very least, take some of these steps. Send your new/young AE to account executive training: Whether it's our AE Bootcamp (we've been conducting this course for [...]

By Drew McLellan|

How do you get your agency employees to do their time sheets?
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How do you get your agency employees to do their time sheets?

Employees, Money Issues

How do you get your agency employees to do their time sheets?

What do you do about late (or non-existent) time sheets? Did I hear an echo? It seems that this question is asked again and again, year after year. The only modification in the conversation is whether or not you should do time sheets at all. (Watch for that discussion later this week.) The attitude of agency management (you) towards the problem is the solution, or non-solution. If you set and enforce a policy of completing time sheets on time, the question is moot. If you tolerate tardy time sheets, that's what you get. Your attitude is reflected by your employees. It boils down to rewarding the behavior you want. Remember, the greatest management principal? If your agency has the tardy-time-sheet illness, it is because you've rewarded the tardy time-keepers by not making a stink about it. I tend to run a relatively easy going shop. But many years ago, I realized I had to take a stand on time sheets if we were going to be able to accurately track our work, our profitability and our workload. I had a choice -- the carrot or the stick. Most bosses would go for the carrot like JWT Casa did. They created a direct correlation between filling out and getting something you desperately need at the end of the workweek: a fridge full of beer. Guess what? Everyone filled out their time sheets. On time. Suddenly, time sheets weren't a problem anymore. I went the way of the stick. I told my employees that I would fine anyone who did not complete their time sheet before they left the office for the day. I'm not sure they believed me. It was an unusually strict response from me. Until about [...]

By Drew McLellan|

Results from the small and medium advertising agency survey on salaries and benefits
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Results from the small and medium advertising agency survey on salaries and benefits

Agency Operations, Employees, Money Issues

Results from the small and medium advertising agency survey on salaries and benefits

For the past 12 years, Agency Management Roundtable has conducted an annual salary and benefits survey looking at the trends in small and medium sized agencies. The survey results report allow agency owners to compare their salaries by position with how the rest of the country's salaries. The results are also presented by agency size and region. For the first time in several years, salaries seem to be on the rise, albeit a modest one. We’d seen flat or declining salaries over the past several surveys. This and several other indicators in the report seem to suggest that the recession’s toll on agencies is beginning to recede. A new trend appeared in this edition of the AMR Salary Survey as well. More agencies (18%) do not have an in-house copywriter. As freelancing and contract labor options become easier and more plentiful, it will be interesting to see how this trend evolves. It seems to fly in the face of all the Content Marketing push that is being driven by social networks and the rush to digital marketing spaces. Agencies, like all small businesses, are clearly struggling to offer their employees healthcare coverage. Over 90% of agencies surveyed offered their employees some form of health insurance and contribute to the costs at some level The 2012 AMR Salary & Benefits Survey Report is available for purchase at $99 The 2012 survey of advertising agencies’ employee compensation was conducted by the consulting firm, Agency Management Roundtable (AMR). The firm is the only consulting group that focuses on marketing communication agencies employing fewer than 50 people. Over the past twenty years, AMR has worked with several hundred advertising agencies, public relations firms, graphic design companies and new interactive [...]

By Drew McLellan|

Your agency’s biggest fraud risk
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Your agency’s biggest fraud risk

Employees, Money Issues

Your agency’s biggest fraud risk

Should you be concerned about possible fraud in your business? You bet. Here are some things to pay attention to when it comes to business fraud prevention. You may think that because your agency is a small business that you aren’t susceptible to employee theft and fraud. In our work with agencies, the biggest problem is the lack of owner understanding about financial process and how reports and statements are constructed. If you don’t have a good understanding you are a prime candidate for being bilked out of tens of thousands of dollars. At the low end. For smaller businesses especially, the burden of fraud can be very costly. Statistics show that the median loss for a small business is well over $200,000. Making business fraud prevention a priority will help ensure that you do not become a victim. With a little bit of effort, you can effectively reduce the likelihood of fraud in your business. Sadly, we could tell you too many stories of hard working owners being defrauded by very clever thieves. And those thieves are usually employees. The worst case I was involved in finally discovered the bookkeeper had slipped more than $400,000 out of the company coffers over a five-year period. He had a wonderful home and all the trimmings, paid for by the agency. The bad news: local authorities are hardly interested in business fraud cases that are not in the millions. It is difficult to prosecute the thief, and he goes on to his next victim. Often, the only way to collect is to report the thief to the IRS for non-payment of back taxes on the money that was stolen. The FBI tells us that the funds are often [...]

By Drew McLellan|

How to Manage Payroll
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How to Manage Payroll

Employees, Money Issues

How to Manage Payroll

An annual salary increase should be tied to profitability not the calendar. We don't recommend automatic annual salary increases. When learning how to manage payroll, we do wholeheartedly recommend is a salary plan that is fair and rewarding to all employees that inspires them to go above and beyond for the agency and its clients. You don't reward someone with an annual salary increase just for being on staff or holding down their position for another year. You reward them for their contributions and their added value. Unfortunately, many employees feel entitled to a salary increase every year, and are very vocal when they don't get one. Somehow, salary has become an entitlement program. "The longer I stay, the more I should be paid." Sorry, I don't buy it. My concept of a good salary/compensation plan for advertising agencies includes four basic elements: Profitability of the agency The responsibilities of the person's job and their contributions to the profitability Did they get better at their craft (are they adding new value) How long have they been a part of the team It boils down to rewarding the results you want. Rewarding the Results Profitability has to come first. You can't increase salaries if you aren't making a profit. The first responsibility of every employee should be to help the agency make a profit. I believe it is the agency's responsibility to keep employees even with the cost of living, and that employees should receive a piece of the profits the agency earns. The agency made the profit because of the combined efforts of the staff. Responsibilities vary with the position and with the person. It's obvious that a senior art director will make more than [...]

By Drew McLellan|

Exit interviews – don’t miss this opportunity
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Exit interviews – don’t miss this opportunity

Employees

Exit interviews – don’t miss this opportunity

I know I'm not telling you anything you haven't already figured out. An agency's employees are so much more than the life blood. They are the walking, talking embodiment of your company. And when they leave -- you can learn a great deal, if you conduct exit interviews. I've been really fortunate. In the almost 20 years of owning my agency, I've had (and have) some incredible employees. They've gone on to do amazing things like start their own agency, work for Dow Jones, opt to stay home and raise three wonderful boys, work for Meredith Publishing, BBDO and many other fine companies. Of course, there's the other side of the coin too. Some self-destructed, others...I mis managed or put into the wrong position and set them up to fail. Some of them are still friends. Others curse my name, I'm sure. Honestly, that's one of the most painful elements of owning an agency for me. I know I preach that we should have have thick skins, but I can't say I have that mastered. But no matter how/why someone leaves your agency, don't miss the opportunity to to conduct an exit interview. You probably won't like everything you hear, but you will learn from it. Every time. Exit interviews can deliver important inside information. The way departing employees view your organization might be the way things really are. You can do this in a few different ways. If the employee is leaving on good terms, as the agency owner, you might be able to sit down and have a frank conversation. But if there's still a final paycheck pending or they don't want to burn any bridges, you might find them less than truthful. [...]

By Drew McLellan|

Do you have gold medal employees?
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Do you have gold medal employees?

Employees

Do you have gold medal employees?

Let's be honest -- employees are both the best and the worst part of owning an agency. It's tough to find the right ones. It's a challenge to train them well. It's a bear to encourage each of them in the way they want to be encouraged. And even when you know it's the right thing to do, it's miserable to fire one. I always marveled at Jack Welch's philosophy that you should fire the bottom 10% of your work force. I have to admit, there were years when I fantasized about it. And other years when I truly didn't have a bottom 10% because everyone was gold medal worthy. Top employees are like athletes - motivated, well trained people who are willing to make personal sacrifices for the team. Certainly a competitive nature is important, but it doesn't work well for your company unless it's accompanied by a deep sense of loyalty and responsibility. As I thought about what makes a gold medal employee (and I acknowledge that it starts with having a gold medal employer, which I try very hard to be...and hit about 50% of the time.) I came up with this list. Gold medal employees go above and beyond expectations. They don't stop when they meet the minimum goals for their jobs - they strive to set new records. Gold medal employees offer solutions, not problems. They don't just say to the boss, "You have a problem." Instead, you hear, "We have a problem - let’s see if I can figure a way to solve it." Gold medal employees bounce back. When they fail, they don't let it get them down. They admit the mistake and find ways to fix it. [...]

By Drew McLellan|

Agencies need to stop hiring “nice”
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Agencies need to stop hiring “nice”

Account Team, Employees, Evergreen

Agencies need to stop hiring “nice”

One of my pet peeves is the hiring practices of agencies -- we need to stop hiring "nice". Earlier this month, we kicked off a conversation about why agencies find themselves relegated to vendor status. If you remember, we identified 3 causes. The economy — workforce reductions, budget cuts and overall fear (out of your control) Agencies willingness to behave like a vendor just to get the project (within your control) Agencies hiring “nice” account executives who are order takers rather than smart business people (within your control) In this post, we'll tackle the hiring "nice" issue that many agency owners and Directors of Client Services seem to struggle with. Every agency owner worries about how solid their client relationships are and who is tending to those clients. We want clients to feel like they're the agency's only focus. As a result, we've often hired people who are relationship nurturers and good at customer service delivery. There's nothing wrong with those traits. But they don't match up with what clients tell us they want. In our AE Bootcamp workshops, we teach AEs what their clients expect from them. Here's what our research revealed clients want in an AE: Knows the client’s industry and markets Makes their job easier Is organized and dependable Is empowered to make decisions Demonstrates a passion for solving problems Is willing to be treated as a consultant and a vendor Is not learning on the job I don't see nice, friendly or even a good relationship builder on that list. It doesn't mean those traits don't matter. It means those traits are tables stakes -- the givens. Clients think of those as a "duh" not a point of difference. What they're [...]

By Drew McLellan|