Retaining Your Agency’s Most Important Asset

υThe U.S. Labor Department issued a press release this month that’s getting a lot of attention: It said the Bureau of Labor statistics recorded a leveling off of hires and separations for the month of June, 2018. While employment openings seemed to have slowed down, unemployment is up slightly. The reason for this, experts say, is that people are quitting their jobs at a higher rate—in fact, the highest rate since April, 2001.

These figures reflect a strong job market, as well as optimism by workers who are seeing more employers willing to grow their workforce. Agencies should be concerned. Hiring and maintaining good staff is not a new challenge in our industry, and it won’t be getting easier any time soon. We have lamented for years how difficult it is to entice people to join the insurance industry; now, we are facing an uphill battle to keep them once they are here.

There is good news: Once a job seeker tries insurance, they realize what I have written about many times: Insurance is a great career. There are opportunities for any type of personality, from the introverted analytical person to the mushy extrovert. I have enjoyed the entrepreneurial aspect of owning my own business and knowing that what I do helps people; allows them to sleep at night; and it provides them solace during the toughest times in their lives. The compensation has been good, and I had the opportunity to build a staff of great people who I loved working with every day. I truly enjoyed working at my office, and my employees were like family to me.

We need to keep promoting the message that insurance is a great career. But, we agency principals also need to remember that the most important asset to our business is its people. Our clients work with us because they trust us; because they talk to a real person when they call our office; because they can hear in the true concern and compassion for their well-being in our receptionists’ and CSRs’ voices. We are successful beyond the funny commercials and cute mascots that direct writers use because our agencies reflect the friends, families and communities we serve. Our employees are the only thing that can do that. Not an agency management system; not a computer; not a 15-minute quote … So, what can we do to retain our best employees?

First, we can be explicit about how much we value them. Make a point of talking to your staff; Use compassion when you speak with them and tell them they are valuable to you and your clients. They need to talk, and they need to know their employer cares and respects them. When I look back at the time I was an agency principal, the memories I value the most are when I shared truly personal moments with my staff. I’ve written previously about my assistant Roberta—she, and others in my office, made going to work every day a joy. The tears we shared over each other’s trials were real, mutually beneficial and what we both valued most about the agency.

Time off is a benefit cited over and over again, particularly with regard to Millennials, but for anyone who has a family. People appreciate when you recognize that they have lives. I know of agencies that close early prior to a holiday or early on Fridays during the summer. How much business gets done at this time? Perhaps it’s worth closing your doors to maintain a culture of appreciation.

I know an agency that is a class outfit. Last month, the agency principal called a staff meeting about the Fourth of July, which happened to fall on a Wednesday this year. The principal explained that, while the agency had to be opened for the week, he wanted to ensure that staff had time to spend with their families. He gave them the option of choosing to take Monday and Tuesday or Thursday and Friday off. Employees were responsible for making sure there was coverage for each other when their colleagues took off. This did two things: It demonstrated that the agency cared about its employee’s personal lives, and it demonstrated confidence in their dedication to their jobs and their ability to work out their responsibilities.

Another way to demonstrate appreciation to your staff is by recognizing birthdays, work anniversaries and other landmark events for the individuals you employ. One agency I know sends new employees flowers when they hire them: Talk about a great way to start a positive relationship. Sending your staff a token of congratulations or appreciation is a small investment in making sure the relationship lasts.

I know many agencies demonstrate to their staff that they consider them professionals by providing them with continuing education. And, while licensing is a benefit to both the agency and the individual, what about encouraging them to join associations in their fields? Ask any PIA volunteer director: The benefit of participation in PIA to their agency is a hundred times their investment. But, perhaps your staff would benefit from joining PIA’s Young Insurance Professionals organization or a local marketing group or toastmasters club. There are endless organizations at which employees can build their skills, which helps cement loyalty and benefits your agency.

How important is the attire your staff wears? Many organizations have “dress for the day” policies, in which staff is allowed to dress down or casually. Allowing their comfort and discretion in choosing their attire says, “I trust you and I want you to be happy here.”

Speaking of being happy, many agency employees hold certain causes close to their hearts. Allowing them time to volunteer at local charities can instill deep satisfaction, and it has the added benefit of strengthening community relations and raising awareness for your agency.

Another idea to demonstrate you value your staff is closing your office and throwing them an employee appreciation event. Some agencies invite their staff’s families for picnics or bring in a caterer on slow summer Fridays.

The cost of these gestures is small when you consider how important your staff is to your agency. Consider in contrast, the cost of losing institutional knowledge, finding and training new staff.

Of course compensation is going to be a factor. But, report after report affirms that it’s not all about the Benjamins. Inc. magazine is just one publication that repeatedly has said pay raises and bonuses can’t keep salespeople and other staff happy.¹

“It’s well-known that monetary incentives do little to motivate people,” Inc. magazine printed on July 10, 2018. “Research shows that pay raises won›t turn your employees into productivity machines. In fact, giving creative people bonuses demotivates them and leads to poorer performance.”

Inc. magazine pointed to a recent survey conducted by Businessolver,² which found that 60 percent of employees would take a pay cut to work for an “empathic organization.” That’s one that provides supportive emotional connections, positive relationships, meaning and purpose.

The survey found that employees value certain displays of empathy by their employers more than pay. These include: Offering flexible hours and work schedules to promote work-life balance; understanding the need to take time off for family matters and caregiving; creating a climate to talk about challenges; and recognizing achievements and milestones. I believe, if you look at Millennials entering the workforce, you will find that they value these things even more than older cohorts.

Point made. Your employees are your agency’s most important asset. You make a living by reminding people to protect their assets. Don’t forget to do the same for your business.

Nowdays, it’s more important than ever. 

Footnotes:

1.
Inc. magazine, July 10, 2018  https://www.inc.com/melody-wilding/what-your-employees-want-more-than-money.html

2.
https://www.businessolver.com/who-we-are/news/businessolver-quantifies-empathy-in-the-workplace-#gref