When asked, “What do you like least about your job,” many agency owners reply, “HR!” Most are born salespeople. They like selling, helping customers, building relationships and making people happy. It's what makes them tick.

These same agency owners do not get a thrill from tracking vacation requests, monitoring employee attendance or managing sick days. They don't particularly enjoy buying health insurance or conducting employee reviews and they definitely prefer to steer clear of settling employee disputes or playing peacemaker. As agencies grow, however, so too does the responsibility for human resources. Owners need to treat their own people well and provide for their well-being.

HR offers agencies a tremendous opportunity to create a competitive advantage. Investing time and resources upfront can yield significant dividends for your agency down the road. How?

1) Better hires. Too many agency owners approach HR by taking shortcuts, hoping to get past whatever issue they face, so they can get back to marketing and selling. That can lead to hiring substandard employees or those who simply are not a good fit.

Don Phin, an employee relations consultant, has developed HR tools that can lead to better hires. (Check out www.hrthatworks.com to learn more about his tools.) Using his tools takes a little time and effort, but they can save you from having to address the same employee issues over and over, while increasing your workforce's stability.

2) Better systems. A lot of HR problems result from poor procedures and weak job descriptions. If an agency does not have good procedures, it is inviting trouble. Without good policies, uncertainty prevails. Inevitably, someone steps in with his or her own procedures.

A lack of job descriptions can cause similar problems. Without standards or explanations of responsibilities, people cannot be held accountable for their work. Good procedures and well-crafted job descriptions significantly decrease E&O exposure and can increase morale and improve productivity.

3) Better employee relationships. A lack of procedures and job descriptions also can create a leadership vacuum. HR problems proliferate when people fight for turf. While employee bickering sometimes might appear petty, it is not petty to the participants. Fighting over turf and establishing a pecking order is normal human nature, and if leadership is lacking, more battles will be fought. Because the agency owner will likely be brought into these battles, wouldn't it be better to establish leadership through HR efforts and possibly preempt such fights?

4) Better dynamics within the agency. People who “connect” to their place of employment tend to be better workers. People who feel their employer cares–about them, about their opinions, ideas and aspirations–often work better and contribute more. People who feel “neglected” may strike out on their own, apathetic to their impact on others or the agency.

An HR plan establishes boundaries, goals and direction for employees. It welcomes employee input and establishes a sense of team. The whole becomes greater than the sum of its parts.

5) Better business. Establishing a good HR plan is simply good business. Commitment to it should yield a better agency, one you can more fully enjoy. A good HR plan is your employees' guide to expectations. If an employee is allowed to take advantage of you or the system, others may rebel, retaliate or become disgruntled. Your HR plan should “pull the plug” on the initial bad behavior, because it holds you and your employees accountable for undesirable actions.

6) Leadership. Creating a good HR plan is leadership. Invest in it.

Special Reports /

For The Manager: Why agency owners should address HR issues

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