Before we dive into today’s topic — I first want to say thank you for your listenership and loyalty! We are downloaded in over 85 countries and I’m grateful for every listener. This solocast is Episode 150 of Build a Better Agency and I’m grateful for your time and the conversations we’ve had over the last three years.
Way back in Episode 35 (in early 2016), we talked about the employee shortage and the challenge the shortage was creating for agencies and agency owners. If anything – things have gotten tougher.
As you know, I see the financials for about 120 AMI agencies a year. I review their P&Ls, balance sheets, ratios, and some other information. And I will tell you that even though agencies may have had a good year financially in 2017 — they didn’t actually get to keep a lot of the money they earned. And the reason why they didn’t is because their employees are taking more and more of that money. This is happening because of scarcity. The truth of it is…scarcity wins. And right now, your employees are in control.
There are fewer good agency employees than there are agency needs and jobs. And I don’t think this is going to change any time soon. I thought it might be helpful if I shared how some agencies are addressing this challenge. I will walk you through some creative benefits employees consider to be brag-worthy, as well as the benefits that scored at the top of our research with over 1,000 agency employees. The truth is, 401k programs and insurance coverage no longer differentiate you from your competitors — they are table stakes.
Here’s the reality — we have to understand what today’s workforce wants and you have to make sure that your culture and your benefits package match those expectations if you want to attract and retain the talent you need to grow your agency.
What you’ll learn about in this episode:
- How to attract and retain quality talent using today’s tools and why you need to build a pipeline for talent in the same way you build a pipeline for new business
- How long you should reasonably expect your employees to stay with your agency
- What are some brag-worthy benefits that will get your employees talking about your agency with their fellow professionals
- How you can provide your employees the opportunity to have flexible work hours or work from home days without losing the valuable in-office collaboration
- Why your employees will actually take less time off if you provide them with unlimited PTO
- Why we cannot dismiss the changes in the needs of today’s workforce as just a millennial thing
- What your employees consider to be the most important thing keeping them in a job – or – how they decide to accept a job they are offered
- How treating all of your employees fairly does not mean you have to treat them all equally
- Why just because someone is good at their job does not mean they’re going to be good at supervising other people doing that job
- What are “boomerang employees” and why you should consider circling back to them
Drew McLellan is the CEO at Agency Management Institute. He has also owned and operated his own agency since 1995 and is still actively running the agency today. Drew’s unique vantage point as being both an agency owner and working with 250+ small- to mid-size agencies throughout the year gives him a unique perspective on running an agency today.
AMI works with agency owners by:
- Leading agency owner peer groups
- Offering workshops for owners and their leadership teams
- Offering AE Bootcamps
- Conducting individual agency owner coaching
- Doing on site consulting
- Offering online courses in agency new business and account service
Because he works with those 250+ agencies every year — Drew has the unique opportunity to see the patterns and the habits (both good and bad) that happen over and over again. He has also written two books and been featured in The New York Times, Forbes, Entrepreneur Magazine, and Fortune Small Business. The Wall Street Journal called his blog “One of 10 blogs every entrepreneur should read.”
The Golden Nugget:“The most important thing you can do to invest in your employees is to give them your time, your attention, and your mentorship. Share your expertise. Nothing is stickier to your employees than you.” - @DrewMcLellan Click To Tweet
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