How employee turnover can kill an agency
Author: Loren Levitan - Licensed Producer
Publication Date: March 15, 2017
"We didn’t know we had a problem until our planes were sitting empty on the runway." This is a quote from the former head of loyalty for United Airlines and a statement which I have carried with me throughout my career. The statement was made with regards to complacency and taking people for granted, in this case, their customers and their employees.
Employee satisfaction translates directly to customer satisfaction. Employees are on the front line with customers and, how they engage with a customer can be the difference between retention and defection. The same is true regarding you and your producers. How you treat, compensate and reward them can also be the difference between retention and defection of them and their book of business.
"Competition in the market to attract good people is challenging," says Bruce Crankshaw, chief sales officer of Cedar City, Utah-based Leavitt Group. Retaining good people is also challenging. Crankshaw also states that “He believes that what producers are looking for today is different than what they looked for yesterday”. So how you compensate and reward todays producers can influence their decision to stay or go.
There are so many compensation models out there for producers. There’s the tradition of offering a draw against commission for new producers, while other agencies look for newer approaches because they find that draws are not effective in attracting young recruits into insurance according to Andrea Wells of Insurance Journal. It takes a long time to achieve a sizable book and scale. So, you want to assure that you keep it.
Agencies are looking for alternative ways of rewarding and incenting their producers outside of the various traditional compensation models. Workplace benefits are being developed to address this need that motivate producers to achieve or who have already achieved a sizable book and that supports their individual lifestyle in and outside the office.
If you, as an owner and producer, can show your stars and up-and-comers that you appreciate them on a regular basis, employee retention, performance and overall wellness increases. According to Robert Half and Associates, pay is just one part of the equation for employee retention and satisfaction. A variety of traditional and non-traditional benefits, which you can be used to improve your produces’ financial standing and help you maintain that ever-important work-life balance is a necessity for today’s economy.
An example of a company at the forefront for workplace benefits targeting small to mid-size agencies is MyStaffPrivileges.com. What’s the difference between the traditional benefits you offer and workplace benefits? Price and everyday value. For instance, you pay a lot for health insurance. What if you could help bring down the cost of your overall health insurance costs by reducing the number of doctors’ visits while increasing easy access to health professionals? telemedicine, one of the fastest growing trends in the medicine helps do this and for very little cost. Companies like MyStaffPrivileges.com bundles together benefits like telemedicine – full family coverage, dining savings with a $25 Restaurant.com Gift Card every month, home buyer and seller rebate, full-family roadside assistance, pre-paid legal services, and more to bring the costs down even further. This allows small agencies the ability to offer employees workplace benefits which are normally only affordable by large companies. You keep your employees happy and you keep your best employees…and their book of business.
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