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Recruiting, Training and Leading the Next Generation

Join Kevin Stipe on March 4-6, 2019 for a class on improving employee performance, identifying hiring needs, and implementing effective recruiting strategies. Learn how to lead your team to success and grow your agency.

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Recruiting, Training and Leading the Next Generation

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  1. Recruiting, Training and Leading the Next Generation Kevin Stipe March 4-6, 2019 Class 4 Session 1

  2. “If we get the right people on the bus, the right people in the right seats, and the wrong people off of the bus, then we will figure out how to take it someplace great.” Jim Collins Good to Great

  3. How is your bus? Do you have the right people on it? Are they in the right seats? Are they performing at a high level? Are there people you need to get off the bus? Are you getting enough new people on your bus?

  4. 5 Key Measures of Employee Performance Revenue per CSR Organic Growth Profitability Revenue per Employee Producer New Business & Book Size 2 3 4 5 1

  5. Agencies underperform because of… We will separately address each of these issues Lack of quality and consistency in business written Weak systems, structure and processes Poorly qualified or trained staff Ineffective or unmotivated producers

  6. Major problem: inadequate production staff of agents not hiring enough producers to grow and perpetuate 55%-60% Source: Reagan Consulting Producer Recruiting & Development Study

  7. Our industry is aging

  8. Generational Capacity The Effects of Producer Age Distribution (Based on RVI Data) Age Distribution of Production Force (Based on RVI Data)

  9. Number of Producers by Age Band Number of Producers by Age Band Source: Reagan Consulting Producer Recruiting & Development Study. Includes only validated producers.

  10. How to Determine Producer Hiring Needs For 92 CIC Agents, Annual Hiring as % of Current Producers: Median 8.0% Top Q: 11.3% Bottom Q: 5.0% 1 / Year 0.7 / Year 1.5 – 2.0 15-20%

  11. Best Practices Hiring AdequacyBased on growth rate targets Sufficient Hiring Under Hiring Note: Hiring sufficiency percentages represent the (positive or negative) difference between the number of hires and the required number of annual hires needed to achieve the target growth rate. For example, if 10 annual hires are needed and only 9 were hired, the firm “under-hired” by 10%.

  12. What investment generated the highest return between 2012 and 2017?(assume $1,000 invested) 17.4% $2,226 24.5% $2,990 36.1% $4,662 70.7% $14,513 Successful Producer 86.3% $22,467

  13. Assumptions defining a “Successful Producer” • Validates in • 3-5 • years • Investment breaks even in • 5th • year • Builds a book of profitable, recurring clients worth • 1.5x • commissions

  14. Best Practices Agency annual “portfolio” return: 5 years of producer hires 5% 16% 24% 43% 55%

  15. How many producers should we hire? It depends on… Generational Health Targeted Growth Rate (3%, 5%, 8%, more?) Investment Opportunity (how much can you invest?) Your Hiring Success Rate Your Capacity to Hire and Train Producers

  16. Producer Recruiting and Development StudyCritical Success Factors: Define hiring needs Determining who to hire

  17. 19 BPSNew Producer Hiring Stats 36% of BPS agencies between $1.25 and $5.0 million in revenues hired new producer(s) last year 64% of BPS agencies between $5.0 and $10.0 million in revenues hired new producer(s) last year $49,592 Average annualized wages per producer hired at BPS agencies between $1.25 and $5.0 million in revenues $71,533 Average annualized wages per producer hired at BPS agencies between $5.0 and $10.0 million in revenues

  18. Where New Producers Were Found (BPS Agencies between $1.25 and $5.0 million in revenues) 14% Over 35 from outside the insurance industry 43%Over 35 29% Over 35 from inside the insurance industry 30% Under 35 from outside the insurance industry 57%Under 35 27% Under 35 from inside the insurance industry 20

  19. Commonly Used Recruiting Sources (BPS Agencies between $1.25 and $5.0 million in revenues) 46% Used social media 39% Used outside recruiters 23% Used targeted college recruiting efforts and programs 21

  20. Producer HiringTargets/Strategy

  21. Producer Recruiting and Development StudyCritical Success Factors: Define hiring needs Determine who to hire Build the candidate pool (prospect list) Elevate the ability to select winners Someone must own and lead the hiring strategy

  22. Breakout Session How is your producer “Generational Health”? How much do you want to grow? Do you need to elevate your hiring? Who will you target to hire?

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