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1. The Five Major Hiring Mistakes Only Hire the Best Community Webinars www.insurancecommunitycenter.com

2. Insurance Community Center • Presents Monthly Webinars Free to Community Members • Community webinars are archived on the Community homepage under the right hand tab titled: Webinar Archive

3. George Nordhaus Chairman, Insurance Hiring System Sue Nordhaus President, Insurance Hiring System Today’s Presenters Insurance Hiring Systems www.agenciesonline.biz 888 985 3331 X 210

4. Cost of a Bad Hire • Wasted time in the hiring process • Money spent on the new hire/termination • Lost Business • Staff Alienation Today’s Presenters Insurance Hiring Systems www.agenciesonline.biz 888 985 3331 X 210

5. The Cost of Employee Turnover • Most hiring and promotion decisions are made in haste—during the first 5 minutes of an interview • The economy is having an effect on hiring, and on turnover, but.. • 80% of employee turnover is avoidable

6. The Cost of Employee Turnover • Hiring the “wrong” person for the “wrong” job can be a financial disaster. • Many employees do not have all the skills and attributes to do their jobs well Other vital factors need to be determined before successful hires can be made

7. The Cost of Employee Turnover • Understanding the financial (and other) effects of establishing more proficient hiring practices will provide you more reasons to spend time and effort on this vital growth subject.

8. The Cost of Employee Turnover • The Gallup Organization places the cost of a bad hire as being 3.2 times the individual’s salary. • Agency management consultants tell us bad hiring decisions that result in turnover cost the employer up to twice the person’s annual salary—for example a salary of $50,000 but cost of failed hire is up to $100,000.

9. The Cost of Employee Turnover Consultant Chris Burand says it costs a minimum of $200,000 to develop a producer.

10. How do you…. • Avoid frequent turnover? • Save money, time and aggravation? You learn to be more savvy when hiring your next employee…and stop making….

11. What This Course Will Cover The five major hiring mistakes… 1. Not identifying needs 2. Not understanding the “Hiring Triangle” 3. Not getting ALL the pertinent information 4. Not conducting a productive interview 5. Not measuring against specific “Job Match Patterns.”

12. Mistake #1—Understanding the Hiring Triangle • Failure to understand the concept of the Hiring Triangle

14. Mistake #2— Not identifying needs • What do we need to accomplish? • Exactly what positions are we trying to fill to accomplish those goals? • What do we need in terms of skill, character and competency? • Objective standards they need to meet • What education should they have • How about prior work experience • Technology skills

15. Understanding who we are looking for.. • Unless we understand the functions e want the potential hiree to perform (and agree on them with the candidate) the long-term probability of a successful hire is at stake. • Here, for instance are the fourteen job functions in agencies…

16. Mistake #2— Not identifying needs • Agency Principal • Benefits Account Manager • Benefits Producer • Bookkeeper/Financial • Claims Manager • Commercial Account Manager • Commercial Lines Producer • Information Systems Mangers • Marketing Manager • Operations Manager • Personal Lines Account Manager • Personal Lines Producer • Quality Manager • Receptionist

17. Commercial Lines Manager CSR • Prequalifies new business • Educates clients about coverage, exclusions & exposures • Helps clients make appropriate coverage changes • Makes each contact a marketing opportunity • Decides whether to use immediate or delayed invoicing • Provides producers with technical support (to help clients and agencies) • Follows up t ensure timely response • Explains audit procedures to clients and reviews interim reports • Provides binders, certificates, policies, etc. for clients • Explains audit procedures • Seeks referrals from client base • Summarizes schedules/proposals • Remarkets, contacts clients and follows up with producers • Renews policies • Verifies accuracy of direct billed cancellations • Follows agency credit and collection policies • Review's walk in payments

18. Mistake #3—Getting all the pertinent information • Hirers primarily use resumes only to screen out non-qualifying candidates. • But resumes, if used and understood properly, can play a major part in the hiring process • Employment apps not standardized, have little probing questions…so.. • We are not getting all the information we truly need

19. What to watch-out for in a résumé • Believe it or not, lying on resumes is on the rise. Over 60% of H.R. professionals say they find inaccuracies on resumes.

20. What to watch-out for in a resume • What do applicants lie about? • Education • Number of years they have worked on a job • Accomplishments such as taking credit for that they did not do • Reasons for leaving the previous job • Salary at previous jobs • References

21. What to watch-out for in a resume • There are a variety of outside services (Google “Background checks’…51 million entries) that will help you verify the resume’s authenticity: • Comprehensive Background Check • Education Verification • Criminal, Civil and Sex Offenses

22. What to watch-out for in a resume • Employment Verification • Reference Check • Professional licenses and certification checks • It is very easy to simply put initials after your name. • Many accreditations, such as CIC, require the individual meet the accreditation requirement on an annual basis. Has the candidate kept current with the requirement?

23. Make sure you have an in-depth employment application

24. Get all former employment history

25. Three smaller mistakes – well-intentioned, but..— • Infatuation • Blindly promoting from within • Recommendation from a friend

26. Mistake #4—Not conducting a productive interview • Three basic tips of interviewing.. • Holdthe interview in a quiet, private area and schedule plenty of time • Put the applicant at ease by being friendly and conversational • Let the candidate talk, but control the question and answer flow— You learn a lot more by listening then talking Profiles International, Waco, TX.

27. Group Interviews • Group interviews are useful because a big part of cultural fit is whether or not the group actually accepts the person. • So bring people from different parts of your organization to the interview. INC. Magazine

28. Mistake #4—The Interview Process • Five interview questions you should ask: 1. If you stayed with your current employer, what would have been your next move? 2. What makes you stand out from others in your business? 3. Tell me your greatest accomplishment.

29. Mistake #4—The Interview Process 4. Give me an example when you took the time to share a co-worker’s achievement 5. Will you agree to take our assessment tests so that we can jointly determine whether you fit the specific job qualifications? NOTE:Make sure that all people conducting interviews use these same questions and document their answers in their employment file.

30. Standardizing interview questions and procedures in your agency • Create a list of these and have everyone who is involved in hiring use it…always!

31. Types of Question NOT to ask: • Age or date of birth • Unless you can prove that the applicant needs to be a certain age to qualify (such as for licensing or driving a car), don’t ask • Gender • The only place this applies is for rest room attendants • Language Spoken • Use caution. You may require effective communication, but you may not eliminate a candidate due to a slight accent

32. Types of Question NOT to ask: • Number of children, child care arrangements, marital status: • This is confidential information • Club memberships: • Don’t ask, this can reveal religious affiliation or ethnic background • Emergency Information: • Wait until the person is hired to ask for this information

33. Mistake #5: Not measuring against specific job match patterns • Not measuring applicant’s abilities against people successful in that position. Need to know learning style, verbal and numerical ability. Need to know behavioral traits such as attitude, social ability and energy level.

34. Bringing it all together 1. Utilizing the hiring triangle 2. Defining expectations 3. Getting the right information 4. A productive interview 5. Job-matching

35. www.insurancehiringsystem.com

36. Every step in the hiring process

38. Fitting the performance model

39. For Information about the Community and University • Laurie Infantino • laurie@insurancecommunitycenter.com • 714 803 5830 • Marjorie Segale • marjorie@insurancecommunitycenter.com • 714 206 9583 • For Information about Insurance Hiring System • Sue Nordhaus • sue@insurancehiringsystem.com 505 6o3 5503

40. Upcoming Webinars • Upcoming CE Classes • Voluntary Benefits • Ethics • Business Income • Upcoming Community Webinars • Commercial Property Forms • Insuring Winery’s