06/26/2021
Article just posted on Insurance Journal
"How to Find Producers" - to get the full article email me at [email protected]
Most of our agency clients tell us they have a hard time finding producers. They want to know where to look and how to bring them in. It is not an easy task to find someone especially that is experienced from another agency with a book, that can just come in free and clear with a book of business and easily fit into the agency’s culture. Every agency is different, has different levels of support staff, different markets, training, computers, perks and contracts.
Following are some of the ways an agency can find good people and be successful in this endeavor from our experience in working with thousand of agencies over the past 35 years:
Promote from Within
We have interviewed so many agency staff over countless agencies, that feel resentful that owners and managers often look outside the agency to bring in managers and new producers. They may be CSRs or Account Managers that have worked in the agency for a long, long time and know the customers well, the underwriters, the processes and procedures of the firm.
Often, we are told that they do not have an avenue to move up in the organization nor are they ever asked of their desire to do so even at performance review time. It is just “assumed” that they are not interested or willing to move up. They also have a big fear that if they did move into sales, they would have to go on straight commission.
With this concern, even if they have a sales personality and could handle most of the commercial lines or benefits call-ins, they won’t accept the job.
The answer can be a different role that some agencies have created called an Account Executive. These AEs, they are called can handle existing books as producers do and are not expected to bring in new clients. They are usually expected to cross sell the existing account with other coverage lines, such as umbrellas, EPLI, fiduciary responsibility coverages, business interruption, Cyber, etc. Most can do this if they have taken some CSR and CIC courses and have a good manager to lean on.
The key is how to properly compensate them. Most AEs that have that position compensate them on a percentage of the book they handle as a salary, usually in the 20% to 25% range. Usually AEs have CSRs to delegate to for clerical tasks and operate more as a producer on the accounts. If they cross sell or bring in new accounts, they should receive commission for this outside of their salary.
In most agencies the personal lines sales are handled by the CSRs/Account Managers and not specific producers.
Hire Professionals in the Community
This was an avenue taken by a CA firm we knew and they would hire people in their community that were coaches and teachers. These professionals knew everyone AND had a desire and drive to win. They are usually also unable to make a lot more money in their current profession AND are somewhat deadended in their careers.
The agency we knew that did this hired about forty of these people and they rarely ever left. They were extremely hardworking and grateful for the opportunity and were quick studies.
Salespeople connected to Agency Niches
Another source is to look at people that sell in the niches that the agency likes to write and already know that specialty well. An example would be a lumber salesperson or equipment dealer salesperson and the agency has a specialty in contractors or dealers. The salesperson already knows people to connect with that are contractors and the subs and can talk to them about the program the agency has, that would be perfect for their needs. Another example would be a car salesman and the agency writes dealerships, or an attorney who can easily write law firms.
College Marketing Projects & Internships
One of our clients has found two great long-term employees through this idea, a producer and a marketing manager. They started as college business students needing to do a marketing project for a business. They were invited in and got to know what the agency does, what its marketing efforts were, and concentrated on assisting with their website, mailings, ads, social media, etc.
For the full article, email [email protected]
