Every insurance agency wants to make more sales, generate more profit, and eventually expand operations. But the responsibilities grow as you get more clients. It is not just about selling insurance anymore. There are many other essential roles to fill, such as customer services, marketing, and even legal and compliance.
These additional responsibilities can be hard to handle even for an experienced jack-of-all-trades worker that uses tools like Jenesis, an insurance agency management system. The best solution is to hire more people for your agency.
When To Hire More Employees
Hiring a new employee is expensive; it usually accounts for over 50% of an agency’s revenue. So, it is understandable to maximize your resources. But if you or your employees are having a hard time finishing tasks, it may be time to add more people to the workforce.
Here are other signs it is time to hire more employees:
Administrative Duties Bog You Down
Selling is the most important thing in the insurance business. But as an agency grows, so do administrative tasks. If you spend more time on admin duties than revenue-generating and customer-acquisition activities, there is no doubt it is time to add more people to your team.
You’re Working Unrealistic Hours
Running an insurance agency means long hours. But if your work responsibilities are keeping you from spending time with your family and friends or doing your hobbies, it is time to consider getting help.
The Morale Among Current Employees Is Low
Even the highest-performing employees will be exhausted if they do not receive enough support. So, if you notice a decline in your team’s productivity, find out the reason behind it. Burnout is real and could result in lower productivity and higher turnover. It is time to hire additional team members if your current staff feels constantly swamped.
The Agency’s Growth Is Getting Slower
All roles in your insurance agency are important in growing the business. But it is the producer that has the most significant impact. So, if you’ve filled out non-sales roles and noticed slow growth, it’s probably time two add a producer to your team.
You Want More Profit
Hiring new employees may sound counterintuitive when you want to boost profits. But as long as you employ the right people, hiring new staff can help you generate more income. Just make sure not to hire more than what you need.
Factors to Consider When Hiring New Staff
While employees have a limited influence on your agency’s decisions, they can still affect your business directly. For example, a licensed insurance agent who isn’t productive will waste your time and money.
To make sure the right people join your team, here are a few things to consider when hiring new staff:
Assess Your Business’ Needs
If your agency is just starting out, a customer support agent is an excellent first hire. You can delegate non-sales tasks to them, like preparing insurance proposals and issuing documents requested by clients.
When hiring customer support stuff, look for someone with solid communication and organization skills.
Determine the Number of People You Need
Hiring more employees may seem like a great way to ramp up productivity for agencies in the growth phase. But having more people isn’t always a good thing. It can lead to the inefficient use of your resources. So, hire only as your agency needs and can afford to pay.
If you want to know how many more people you need on your team, determine the difference between your average revenue per person and the average compensation per person in your insurance agency. Then compare the result to other agencies of your size in your location. If the difference is lower than the average, you probably have too many employees.
Hire Tech-Savvy Individuals
Embracing technologies is essential now more than ever. Countless insurance tools are available that make work easier and faster. You would want someone who can quickly adapt and utilize these tools to maximize productivity and efficiency.
Hire Insurance Agents Who Can Convert
Your insurance agents can accelerate your business growth or kill it. You need to make sure your agents have the skills needed to bring in more clients. Look for individuals with ambition, drive, and a solid work ethic. They must also be competitive and have a proven track record of success.
Hire Employees Instead of Independent Contractors
When you hire producers as independent contractors, you are giving them ownership of the book of the business. Independent contractors become similar to partners who could earn more than you do. So don’t make this mistake – set new people as your employees instead. It will be more cost-effective in the long run.
Let Them Sign a Non-Compete Agreement
Agents leave jobs – it’s normal. But there are instances when they solicit the clients of their previous employer. A non-compete agreement will prevent your employees from soliciting or stealing your clients, protecting your agency.
Takeaway
Increasing the number of your staff is necessary to achieve constant business growth. But make sure to hire the right number of employees at the right time. Keeping your agency adequately staffed and using time-saving insurance management systems like Jenesis can be helpful in boosting your bottom line.