EP 475: Thinking holistically about agency employee compensation, benefits, and perks with Drew McLellan

Nov 11, 2024

Agency owners are loving their teams more than ever, despite business challenges. They explore why holistic compensation is key to employee retention, emphasizing that it's not just about salary. Personalized recognition and understanding individual contributions can greatly enhance workplace satisfaction. The discussion also touches on innovative reward systems that promote a culture of gratitude and support, showcasing how these approaches can keep top talent engaged and motivated.

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ADVICE

Compensation from Gratitude

Approach employee compensation from gratitude, not obligation or fear.
Recognize employees' contributions and demonstrate your appreciation regularly.

ADVICE

Raises Based on Performance

Give raises based on improved performance and added value, not merely longevity.
Use clear career pathing and salary bands to communicate raise eligibility.

ADVICE

Bonuses Linked to Performance

Tie bonuses and profit sharing to agency performance goals like AGI and profitability.
Educate employees on how their efforts impact those goals to align incentives.

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Many agency owners reported in 2024 that one of the best things about their agencies are their employees. Despite continued biz dev struggles and slow sales cycles, agency owners have had a hard time shrinking their teams because they just love them that much.

So, this week, let's talk about some of the ways we can think about agency employee compensation more holistically to show them our gratitude and continued support.

Agencies continue to be really competitive environments, and many of our best employees will inevitably be approached by recruiters and other agencies at some point in their careers. And the best way to keep them around is through their compensation packages.

But these shouldn't just be about high salaries and bonuses. While important, that's just the tip of the iceberg in showing our gratitude and support to our employees. In fact, the most impactful forms of compensation come from deeply knowing and respecting your team, and showing your personalized gratitude for their efforts and commitment to your agency.

Join me on this week's solocast to dig a little deeper in how we can really get thoughtful about how we compensate our employees, not just with more money, but investing in their continued growth and your personal relationship with them.

A big thank you to our podcast's presenting sponsor, White Label IQ. They're an amazing resource for agencies who want to outsource their design, dev, or PPC work at wholesale prices. Check out their special offer (10 free hours!) for podcast listeners here.

In This Episode:

Looking at agency employee compensation not as an obligation, but something you do out of gratitude
Using raises as a reward for employees adding more value to the agency
Giving bonuses or profit sharing to celebrate hitting monthly or quarterly goals as a team
How a good benefits package gives you a competitive advantage against other agencies
Personalized perks and thank-yous to reward individuals go a long way
How to know when one of your employees has gone above and beyond
Spending time getting to know your employees and caring for those personal relationships
Develop your compensation philosophy based on your goals and values