Part Two: Ten Recommendations for Hiring New Producers
In our previous post, Internal Growth Challenges, we discussed several obstacles that create a need for agencies to recruit and train their own producers. In this post, we offer recommendations for agencies that are ready to make that commitment. Building your own team is a substantial investment, both in time and money. It extends beyond finding candidates with a great sales resume or interest in the position. To get the most out of that investment, give some thought to the following ideas.
It All Starts with Office Culture
In 1983, Robert Quinn and John Rohrbaugh published the “Competing Values Framework,” which identified four unique types of company culture: Clan, Adhocracy, Hierarchy and Market. The whole idea of the CVF was to help organizations understand its culture and how to improve upon it. For agencies without a defined corporate culture, or for those that have not reassessed their culture post Covid-19, we recommend investing some time reading more about CVF.
While most insurance agencies exhibit a Market Culture (competitive and results oriented), we would argue that those with success in training new producers and staff members also embody a Clan Culture. Clan Culture, often observed in family run companies, emphasizes teamwork, workplace equality, mentorship, and personalized training for employees. Creating an environment that embraces these hands-on principles, particularly through detailed training and mentoring is crucial for the development of new producers. A Clan Culture allows them to feel like a valued team member from day one, it enhances their resilience and increases the likelihood of long-term loyalty to an organization as they achieve success.
Deliver One Consistent Message
Successful producer development is a challenge without direction and strong leadership by the agency principal. The tone must be set at the top for defining expectations relative to recruiting, onboarding, training and validation. Once expectations are established, the sales leader, department leaders, and production team must deliver the same consistent message, specifically to training since conflicting messages will slow down the development of new producers. By maintaining consistency and a shared vision, the team will collectively support the growth of new producers and create an environment for professional advancement.
Utilizing Outside Recruiters
Third party recruiters are not directly tied to an agency, which allows them to develop a personal connection with the candidates they represent. Recruiters probe into a candidate’s past and get legitimate answers to hard hitting questions that an agency representative will not get during the interview process. Recruiters learn about a candidate’s motivation, work habits and ethics by uncovering attributes that drive and influence their professional behavior. The right recruiting firm will serve as a trusted partner to find candidates who possess the qualities an agency is looking for. This partnership contributes to an efficient and informed hiring process which leads to better new hires.
Providing an Honest Description of the Job
Transparency about the producer role is the most important aspect of the interview process. It is far better for a candidate to leave the interview with a realistic perspective and never hear back from them than to hire someone who will inevitably burn out within six months. Being honest about the realities of building a book of business ensures the candidate genuinely understands the road ahead.
Agencies that present a validation schedule and a comprehensive compensation model take transparency a step further. Doing so provides candidates with a realistic understanding of the time frame to build a book of business, and the short- and long-term earning potential of the position. Some producers take three or four years to validate their salary, while others may take even longer. Setting accurate expectations and highlighting the challenges of the position will help attract candidates that are prepared for the difficulties of the job.
Creating a Contractual Job Description
When an agency hires new producers, both parties sign a formal job offer and an employment agreement. These are important documents, but not nearly as important as a written contract outlining performance expectations. A contract allows the agency and the new producer to understand their responsibilities in order to achieve the highest potential for success. Expectations of the new producer may include requirements for self-study, office attendance, daily and weekly performance goals, building inventory and setting appointments. Expectations of the agency typically include mentoring, education, marketing tools, sales training, a CRM platform and online subscriptions to generate leads and research prospective businesses. Detailing these expectations in writing leaves no doubt as to the responsibilities of both parties and allows for mutual accountability.
Detailed Training Programs
A new producer’s first year is demanding. They must learn about new products, build inventory, understand their competition, familiarize themselves with carriers and their specific appetites, schedule appointments, submit applications, and hopefully generate new business along the way. To navigate through this period and improve the odds of success, we recommend establishing two separate training plans.
The first training plan should focus on the initial 12 weeks of employment and provide them with basic knowledge and skills to hit the ground running. This plan will help new producers confidently engage with prospects, track their activity, and hit short term benchmarks. Once the 12-week training plan is completed, the second plan should focus on the remainder of their first year. This plan is geared towards providing technical education and a step-by-step approach to gathering renewal dates, establishing verticals, knocking on doors, conducting policy audits, scheduling appointments and eventually writing new business. By investing in these plans, agencies can effectively guide and support new producers and increase the likelihood of success.
Hire in Pairs
The saying “misery loves company” brings a humorous twist, but hiring new producers in pairs offers substantial benefits for their development and success. Pairing new producers provides each with a support system that fosters camaraderie through their first year together. Hiring in pairs creates a collaborative learning experience, as each will have their daily share of ups and downs to share. While new producers are encouraged to seek guidance from their mentors, this does not always happen. Having a peer to bounce ideas off, study with, or engage in discussions with becomes a resource that enhances the learning process and fosters teamwork. Hiring in pairs also creates friendly competition. Weekly contests and friendly bets such as lunch or an after-hours cocktail serve as motivation for both, keeping them engaged and focused on achieving their goals.
Contests, Recognition and Incentives
New producers should already be motivated to do the job, but there are additional things that can be done at minimal expense to further motivate them. Developing daily, weekly or monthly contests with modest financial rewards for high achievers is a great way to further motivate new producers. For organizations that understand the importance of celebrating success, a small trophy or visible praise can also serve as motivators. If your company offers an end-of-year trip or party for those who meet or exceed goals, this will also be a driving force for new producers to actively pursue and achieve their goals.
Earning Your Freedom
Post Covid-19, the desire for “flexible work” has become widespread and as a result one of the biggest challenges in hiring and training new producers. Working from home will inevitably come up during the interview process and sometimes it will keep a candidate from accepting an offer. The right candidates, however, will understand that the key to growth is physically being in an office where they interact with their peers, receive guidance from leadership, and collaborate with marketing and account managers. This is non-optional behavior but there are ways to incorporate flexibility. One approach is to tie flexibility to book growth. For example, as a new producer reaches specific milestones in building a book of business, grant them the opportunity to work remotely on a limited basis, say one day a week. As their book grows and they approach validation, flexibility may be extended further. Once a new producer validates, everything changes. Even though there will always be benefits to working from the office, a validated producer will always want the freedom to choose whether they do or not.
Marketing Department and Account Manager Feedback
The best evaluation of new producer hires often comes from individuals in a marketing department or from account managers. The agency principal, sales leader and producers have limited time during the day to directly observe the behaviors and habits of these new hires, but the marketing team and account managers do. If tenured, they have observed successful and unsuccessful producers come and go. As a result, they gain insight into how these new producers carry themselves throughout the day, allowing them to know relatively quickly who has the potential for success and who does not. Incorporating the perspectives of these team members will provide valuable input, enabling an agency to identify early on if a new hire is a long-term asset or someone that needs to find a new home.
Taking the Next Steps
Understanding the challenges and keys to building a team of producers is the first step in the process. Our team has over two decades of documented success in recruiting, training, mentoring and validating property & casualty and employee benefit producers. The Merit Team is eager to assist organizations that are committed to developing their own team. Please contact us if we may be of service now or as 2024 budgeting begins.