So, here’s the question I want to tackle today:

First, let me say that I’m a big fan of agency retreats. There are few things as effective at improving team unity and aligning everyone with your agency’s goals.

Second, successful retreats are about finding the sweet spot between motivating your team and managing the costs effectively.

How much should you budget?

A good rule of thumb is to budget between $2,000 and $2,500 per person for your retreat. This budget will dictate where you can go, the activities you can plan, and the overall length of your stay. Aim to keep the retreat to around three days—long enough to make a meaningful impact but not so long that people start getting tired of each other.

Manage Big Costs Internally

Cover major expenses like airline travel (if necessary) and lodging directly through your company. This keeps control over significant costs and simplifies planning. For smaller expenses, consider reimbursement unless employees have a company card.

You will want to create a clear expense reimbursement policy outlining details such as the number of checked bags covered, types of ground transportation allowed, and per diems for daily meals. Having a detailed document helps avoid confusion and sets clear expectations, especially for employees who haven't traveled on the company dime before.

How should you handle employee compensation?

1. Salaried Employees (Exempt): Salaried employees will receive their normal salary for the duration of the retreat. Since retreats are part of their job responsibilities, their regular pay covers their participation.

2. Hourly Employees (Non-Exempt): Compensation for non-exempt employees, who are paid hourly and eligible for overtime, can get tricky. Pay them for their regular workday hours. For example, cover from 9 a.m. to 5 p.m., but not for overnight hours, like 5 p.m. to 9 a.m. It’s important to communicate this clearly upfront to avoid misunderstandings. If you invite part-time or hourly employees, consult an advisor to ensure compliance with local labor laws.

3. Contractors: Contractors should be paid a day rate. Keep in mind that attending the retreat may prevent them from taking other client work. However, there's no obligation to cover their costs beyond the standard working hours, as the day rate compensates them for what they'd typically earn in a day.

Key Takeaway

The goal is to make sure everyone feels valued and appreciated, without putting undue strain on your budget. By budgeting effectively and clearly communicating compensation policies, you can create a retreat experience that is rewarding for your team and sustainable for your agency.

Got Questions?

If you have any questions or topics you'd like me to cover in a future issue, feel free to reply with an email! I’d love to hear what’s on your mind, and your question could even end up in an upcoming issue.