How does your employee satisfaction stack up? – Agency Edge Research analysis 2022 with Susan Baier

Announcer:

It doesn’t matter what kind of an agency you run, traditional, digital, media buying, web dev, PR, whatever your focus, you still need to run a profitable business. The Build a Better Agency Podcast, presented by White Label IQ, will show you how to make more money and keep more of what you make. Let us help you build an agency that is sustainable, scalable, and if you want, down the road sellable. Bringing his 25-plus years of experience as both an agency owner and agency consultant, please welcome your host, Drew McClellan.

Drew McClellan:

Hey, everybody. Drew McClellan here from Agency Management Institute, back again with another episode of Build a Better Agency. This week’s guest is probably our most return guest, Susan Baier, and we’re going to talk about the Agency Edge Research that we literally just came out of the field with. What we did was we talked to agency employees. It was very specific. How are they feeling about the work? How are they feeling about their specific agency? How are they feeling about the industry in general? What’s great about their job? What’s not so great about their job? This is an episode and a piece of research that you really need to see and understand as all of you continue to build the agency, want to build your capabilities.

Some of you are still struggling with finding talent. You’re still losing talent to either other shops or to the client side, and so I want to help you be better in terms of keeping the employees that you want and taking care of all of your folks. That’s what we’re going to talk about is we’re going to walk through that research. I will tell you, though, one of the things that we heard loud and clear are a couple of things that we’ll dig into deeper once we bring Susan onto the show is agency employees want more professional development and they want to know where they’re headed. They want a career path.

You don’t have to do it for them, but you need to do it with them. They don’t know how to build these career paths for themselves. I know a lot of you took control of your own career and made your own path, but the people we’re employing today, they don’t seem to have that skill set and they expect us to help them think about where their career could go and what they need to do to continue on that trajectory. That’s on us to do, and to participate in it if nothing else.

One of the things I want to talk to you about is remember that we are offering the AE Bootcamp and the Advanced AE Bootcamp twice a year now, once in the fall and once in the spring. The Advanced AE Bootcamp, it’s too late for you to do the fall version, but the AE Bootcamp for kind of your more junior people, zero to four years of experience, is in October in Denver. Then, we’ll offer both the AE and the Advanced AE Bootcamp again in the spring of ’23. If that makes sense for some of your folks, we would be happy to have them and you can learn more about it on the Agency Management Institute website.

In the meantime, I want to welcome back Susan Baier. As you know, Susan and her company, Audience Audit, are AMI’s partner in the Agency Edge Research Series. We are on our ninth year of doing these studies and every year we learn really insightful things that are both surprising, but also things that we could take action on and do something about. This study is no different.

There’s lots to be learned here and there’s lots to do to make our employees happier, more productive, to retain them for longer, and so I want to jump right into that conversation and give you as much information as we can. We’re also going to talk about a webinar where you can get even more information that’s coming up in October. All right, let’s welcome Susan to the show and get going. Susan, welcome back to the podcast. It’s always good to have you on the show.

Susan Baier:

Oh, thank you. Drew. I love being here in front of your audience. It’s wonderful.

Drew McClellan:

As always, we ventured out into the world to ask people some specific questions as part of our Agency Edge Research Series. This year, our question was, I think, the same question that was on every agency owner’s mind, which is, “What in God’s name is going on my employees’ heads? What can I do to keep the ones that I love and that are incredible performers? How can I find and attract the right fit for my team? What matters to employees today?” I mean, we did this, gosh, how many years ago? Probably six or eight years ago we talked to-

Susan Baier:

Yeah-

Drew McClellan:

… agency employees.

Susan Baier:

… I think it was about six years ago, and that study surprised some folks, the findings from that study-

Drew McClellan:

That’s right.

Susan Baier:

… and this is the second time we’ve spoken to agency employees as opposed to agency clients, and once again, I think the results of the study are going to surprise some folks, so that’s been fun.

Drew McClellan:

When I think about the results of the last survey, I mean, the world has literally changed since then, and so while-

Susan Baier:

Yes.

Drew McClellan:

… some of what we learned six years ago was certainly still valid, we went out really this time with the intent of trying to understand where agency employees’ heads were at, heads and hearts, really. How are they feeling about the work? How are they feeling about the agency they work for? How are they feeling about everything from hybrid work to all of the changes that have been sort of thrust upon us over the last couple of years? We were pretty focused in our intentions I think.

Susan Baier:

Yeah. Well, yeah, and we intentionally held this study, so one of the things we’re going to talk about later is the webinar, the executive summary, all of that stuff is in process now because this study just came out of the field this summer. It is really, really, really, really new, so I think we do have our finger on the pulse of where employees are right now, which I hope will be helpful to agency owners.

Drew McClellan:

Yeah, so we’re recording the week of September 12th, and later this week, this data will be unveiled, if you will, at Content Marketing World. You guys are going to hear this the week after that, so we’re just… We recorded this last week if you’re listening in real time to when the podcast comes out because we wanted to get this to you, and also because, as Susan mentioned, we have a webinar. I’m going to mention this several times during the show because it’s important. As always, in this hour, Susan and I are going to barely be able to scratch the surface of all of the data that we gathered, and we want to really be able to do a deep dive with any of you that are interested, and so on October 4th, correct me if I’m wrong, Susan, noon Central, right?

Susan Baier:

I just trust you when you tell me things like that.

Drew McClellan:

Yeah. That is not a good idea. I think it’s noon Central, right? Hang on. One of us has to look. Anyway, Susan, you look while I give them the information.

Susan Baier:

Okay, that sounds good. I’ll look.

Drew McClellan:

On October 4th, sometime around noon Central, which we’ll get to in a minute, we’re going to do a live webinar where you can actually see all the data visualized and you can ask us questions about the data and we can talk about it. Here’s how you sign up for that free webinar. You’re going to text the word “Research2022,” all one word, so no space between Research and 2022, to this number, 833-592-2949. It’s going to prompt you to send us your email address, and then the minute you do that, we will register you for the webinar.

Susan Baier:

Which is at 10:00 Pacific, 1:00 Eastern.

Drew McClellan:

Noon Central.

Susan Baier:

Well, depending on what happens with Daylight Savings. I’m in Arizona, so I never know what all you people are doing with your-

Drew McClellan:

All right-

Susan Baier:

… clocks.

Drew McClellan:

… ignore Arizona, who has turned their back on Daylight Savings.

Susan Baier:

10:00 Pacific-

Drew McClellan:

A very-

Susan Baier:

… 1:00 Eastern.

Drew McClellan:

… controversial topic, I know, so noon Central. 10:00 if you’re in California, 11:00 if you’re in Denver, 12:00 if you’re in Kansas City, 1:00 if you’re in New York City. All right, and if you’re in other parts of the world, that’s as far as I can go. Check it out for yourself, but anyway, “Research2022” to the number 833-592-2949, and we will include this in the show notes as well. The autoresponder will prompt you to send us your email address, and then we will get you registered. As always with all AMI workshops and webinar, or sorry, not workshops, that would be a lie, all webinars, if you can’t make it live, we will send you the recording. Even if you know already that you’re booked on October 4th, but you want to hear us really deep dive into this content, feel free to sign up.

Okay, let’s start talking about the content. Susan, let’s talk a little bit about the methodology as we always start with, and then let’s talk about what we found out.

Susan Baier:

Right, so as always, these studies are statistically reliable. We talked to about 400 agency employees, which gives us a really high level of confidence on the results of this study. Our focus, we always capture a lot of information, but the real core of this research has always been trying to understand what’s in people’s heads and why they’re making the decisions that they’re making and how they feel about various things. We don’t predetermine what those buckets are going to be. There’s a lot of assumptions that we as owners have about employees, but none of those are built into this study.

The segmentation that we find is organic, and it’s only based on the attitudes that people have, not their demographics or any of those other things. As usual, that process went into play at this time, and when we pulled the analysis of the data, what we saw are three very distinct attitudinal segments this year. They’re not even, as they have been in other years at times, but that’s just the way the data fell out. We have three segments of employees. The first group we’re calling Enthusiastic, which is 27% of our audience. Self-Reliant is the largest group at 45%, and we’ve got a group called At-Risk, which is 29%.

Let’s talk a little bit about what’s different between these agency employees and how they were thinking about things. That Enthusiastic group, which was 27%, are just like the dream situation for an agency owner. They feel very good about their ability to succeed at their agency. They’re proud to work in their agency. They are giving their agency high marks for things like professional development, opportunities, compensation, culture. They say leadership is really in touch with the needs of employees. They think working in agencies is more fun than the client side, and these are people who have done both for that question, and they think the best way to build a career is to stay in one agency for many years. That’s really an excited, supported, enthused group of agency employees, but that’s 27% of our total group.

Drew McClellan:

Unfortunately, those dream employees are the smallest group-

Susan Baier:

Yeah, yeah.

Drew McClellan:

… and by the way, as usual, one of the things that’s always interesting about our studies is when we look at, “Okay, does it matter what part of the country they live in? Or does it matter how big their agency is or their age?” What you will see on October 4th, because we don’t have time to dig into it now other than just to say, none of those things were really factors in where somebody’s attitudes fell into. There is one other group’s that tended to be the younger employees, if I remember it.

Susan Baier:

Yeah, yeah. We’re going to talk a little bit about some tendencies, but as you said, we found all of these segments across all ages, all genders, all agency sizes, so if you have assumptions about who’s enthusiastic and who isn’t based on their generational position, you would be wrong.

Drew McClellan:

Yeah, yeah. Now, the second group, the Self-Reliant group at 45%, is actually… In all the years we’ve done the studies, we’ve never had one group this large before I don’t think.

Susan Baier:

No, I don’t think so. This is really, really interesting, and I think the tendency is going to be for people to hear about this group, to make some assumptions about how they feel about agencies. These folks actually would like agencies, but they’re not very happy with their current agency, and they really feel like their career success is solely their own responsibility. They are not relying on anybody else, including their current or future employer to carry their career happiness and success.

Drew McClellan:

I do think it’s not that they wouldn’t welcome better support from their agency-

Susan Baier:

Oh, of course not.

Drew McClellan:

… on our, or their agency, but they feel kind of their out on an island. They feel very responsible for their own career success, which I think for many agency owners sounds like great thing, but it’s the words “solely responsible” that is the concern. They don’t really feel like the agency owner to agency leadership is that invested in them, and they find the work to be a little pedantic, that many of them have a side hustle just to kind of fulfill themselves in terms of their creativity.

Susan Baier:

Well, and they say they need that.

Drew McClellan:

Right.

Susan Baier:

They say like that’s a requirement for them because it’s not being fulfilled someplace else, and when we talk about how they’re feeling about their current agency, not only are they not feeling sort of that their career is being nurtured at the place that they are right now, but they say things like, “Success at an agency depends on who you know, how well you perform, and that a small number get the credit for everything that happens at the agency.

Drew McClellan:

One of the interesting things I think about this group is I think they feel invisible inside your shop. They’re not getting the pats on the back that they need, and I know for many agency owners, the whole patting people on the back thing is sort of a burr under your saddle. that people should just know they’re doing a good job cause they’re not getting in trouble. Or a lot of times I’ll hear, “My God, I can’t compliment them enough to make them happy,” but again, almost half of the people we talk to are feeling underappreciated and kind of invisible. They also believe right now that they would have a better work experience at another agency than the agency they’re at now. They don’t find working at multiple agencies to be a problem. They actually see some value in moving around.

Susan Baier:

Yep. I think these folks are really looking for the opportunity to exercise their creative expression and really try some other things. They’re just not seeing that, and so what they’ve decided is that they have to manage that themselves. This is why so many of them want to side hustle. I think the interesting thing about the side hustle is it’s not about money. One of the things that I think we expected to thread through this research was compensation, money, money, money, you know? That’s not what it’s about for these folks. They really want to be able to stretch their creative muscles, and that’s why a side hustle is so important for them.

Drew McClellan:

Yep, and I will say that this group is less likely, understand less likely meaning not everybody, but-

Susan Baier:

Right.

Drew McClellan:

… less likely to be responsible for strategy, project or account management, or leaderships. This is more likely to be the folks on your production side of the business, the people who are producing the work.

Susan Baier:

That’s exactly right.

Drew McClellan:

Yeah.

Susan Baier:

That’s exactly right.

Drew McClellan:

Yeah.

Susan Baier:

All right, so that’s 45%, and then we come to this group that I thought about the name for this group, and I don’t think there’s a better name than At-Risk. This is 29% of our employees. These folks really expect their agencies to help employees be successful, be engaged. They want agencies to show concern for their employees’ well-being, and these are least happy with their career trajectory, their compensation, their path for advancement. Here’s the scary thing about this, Drew, this is the group that is most likely to be responsible for strategy, leadership, project management, and account management. These people are at the very center of how your agency works or doesn’t work, and they are the least happy with how things are going for them right now in their agency. Even though they say their agency is doing well, they are really struggling, and of all the groups, as we’ll talk about in a minute, this is the group mostly likely to look outside the agency business completely.

Drew McClellan:

Right. They’re so burned out.

Susan Baier:

They’re so burned out, and-

Drew McClellan:

If I remember right, Susan, these are the people who are working the most hours, too, right?

Susan Baier:

They are. They’re working the most hours. They’re carrying most of the sort of senior type of load. Even though we see these folks at all age ranges, they’re really doing a lot of the work, that really strategic high-level stuff. They’re struggling with it, and this is the group that has the compensation concerns more than anybody else. I think that’s one of the reasons that they are looking outside the agency business, not just outside their current agency, but leaving the business completely and going over to the corporate side. We’ll talk about that, I think, a little more.

Drew McClellan:

Yeah. You know, one of the things that I think is interesting, and again, we often talk about that, it’s very rare that a segment is driven by age or gender or geography, but there were some… While we saw people of all age groups, genders, job levels, years of experience, all of that in all of the groups, there were a few things here that I think are worth [inaudible 00:18:21]-

Susan Baier:

That are different-

Drew McClellan:

… like, yeah.

Susan Baier:

… that are statistically different for certain segments. As you said, all age groups, genders, job levels, time in the agency business, agency revenue, budgets, all of that kind of stuff we see across this spectrum of all three segments. That middle group, the Self-Reliant, 45%, are significantly more likely to be Millennials. 63% of them are Millennials, compared to about 45% for the other two segments. They’re not all Millennials and not all Millennials are going to be in this group, but there is definitely a lean towards that generation in that group.

That third group, the At-Risk group, are significantly more likely to be women, Drew. 66% of the At-Risk are women, which compares to only 40 to 50% on the other two segments. Those are big differences from a demographic standpoint. Those Self-Reliant folks are also more likely to be working at bigger agencies, a hundred or more employees at multiple offices. The At-Risk folks are more likely to work in that 10-to-25 employee range agency and to say their agency is a generalist, which is kind of interesting. When you think about what the Self-Reliant are dealing with and what the At-Risk are dealing with, for a lot of them their experience is pretty difference with respect to their gender, their age, and the size and type of agency that they’re in.

Drew McClellan:

Yeah. Well, and again, I think when we hear the struggles of the At-Risk people, you can see. You can understand why more women would fall into that category, so it’s not unlike what I’m hearing agency owners say, which is their ability to juggle their life and work and all of that is a challenge. As we said earlier, the other thing about the At-Risk group is they are more likely to be working longer hours, so most employees, everyone’s always wondering how many hours everybody’s working.

Most of the people in the survey reported that they work 40 to 45 hours a week. Again, what all of you have been saying about employees at 5:00, they’re checking out. After they’ve done their 40 hours, they’re done, the data supports that, but the At-Risk people are much more likely to be working longer hours than the average of 40 to 45 weeks.

Susan Baier:

They are. Yeah, they are, and you can understand given the load that they’re carrying, and a large percentage of them are carrying that load in an agency that has at most 25 employees. There’s a lot of work to go around, and these folks are bearing the breadth of that. We also looked at where people are working, how people are working. Alost half of our group is working hybrid. 32% are fully remote and 21% in person, and most of them say that the way they’re working now is the way they want to be working.

That At-Risk group is most likely to have a hybrid setup, 68%, and they, too, say that’s what they prefer. I know you hear a lot from agency owners about what we should be doing in terms of coming back to the office and all that kind of stuff. Our data suggests that there’s a mix out there, and most folks are in the situation they want to be in.

Drew McClellan:

Right. It’s not the working environment that is causing these problems, what we’re saying. They’re content with the working environment.

Susan Baier:

Exactly right. Here’s what really struck me, Drew. We asked all of these folks if they had considered leaving their agency job, and they got the options definitely, sort of, not really at all. The enthusiastic, only 10% say they’ve definitely thought of leaving their agency job, and almost 40% said, “Nope, not even considering it at all.” Okay, that’s great. The Self-Reliant, that middle group, 22% of them have thought about leaving their agency job, and we know because of what they told us that they’d go to another agency. The At-Risk folks, 26% said they’d definitely thought about it, and only 12% said that they have not considered it at all.

Drew McClellan:

Right, and, in fact, over 50% of them said either definitely, or sort of-

Susan Baier:

Yes-

Drew McClellan:

… so again-

Susan Baier:

… yes.

Drew McClellan:

… these people are At-Risk.

Susan Baier:

They’re At-Risk and they’re carrying a lot of the really important work in the agencies. The other question we ask that really shows this problem is we asked a net promoter score for working in the agency business. Would you recommend it to a friend or colleague? Would you recognize just not your agency, but just the agency business? 63% of the Enthusiastic are promoters. They’re like, “Absolutely, absolutely.” They have a net promoter score of 59, which is good.

Self-Reliant, 38, not bad. The At-Risk, 12, because only 30% of them promoters, 18% are detractors, and they have a huge… More than half of them are in that passives group, meaning even if they’re feeling okay about things, they’re not talking about it and they’re not recommending the business to anybody else. We know that these are the most likely to say that if they left, they would be welcoming at client side work.

Drew McClellan:

Well, and again, remember, these are the people who are driving account service and strategy and all of that in a bigger volume than the other two groups, so to most agency owners, these are the critical employees.

Susan Baier:

Yeah, absolutely, and I don’t think they’re the people that agency owners think are the problem.

Drew McClellan:

Right.

Susan Baier:

You know, I think that when we look at the… For example, we’ve heard since our initial study, before our initial study, “Oh, Millennials are the problem.” When you looked at that Millennial group, these are no more likely than the At-Risk than the Enthusiastic. It’s the Self-Reliant who are more of those folks, so I think that if you’re looking at age, you’re missing this story and you’re potentially missing how at-risk some of your really crucial employees may be.

Drew McClellan:

Well, and I think it’s important to note that, and then we’re going to take a quick break, but I think it’s important to note that these are the people who you are thinking are your superstars. They’re working longer hours, they’re driving the client relationship, they’re driving strategy, so the cost of losing one of those people is exponential to your agency. You have to recognize they may not be vocal about it, they may be suffering in silence, but they are hurting, and they’re hurting to the point that they want to leave not only your agency, but the industry.

Susan Baier:

Yep. That’s exactly right.

Drew McClellan:

All right, so let’s talk about… Well, when we come back, we’ll talk a little bit about choosing and staying in agencies, but first, let’s take a quick break.

Hey there. Just a quick interruption. I want to make sure that you are aware that you are cordially invited, not just invited, but cordially invited to join our Facebook Group, our private Facebook Group. All you have to do is go to Facebook and search for Build a Better Agency, and you’ll find the Facebook Group. You have to answer three quick questions. You have to put in the agency URL. You have to talk about what you want to learn from the group and you have to promise to behave yourself, and that’s it.

Then, we’ll let you