Hiring a New CSR for Our Agency

[Pannagpamp]

Our agency is looking to hire a CSR and my business partner and I are going back and forth on how to, and how much to pay them. I did a search, but the responses i found were from 2007-2011 or so.

We'd be looking for a licensed individual to handle service work for our book of primarily personal lines policies. We've kicked around hourly, salary with small commission on cross sell and biz they bring in, or straight salary. How has it worked for you all that have tried one of these options?

A second question with that, how much are you paying? What's the going rate?

 

[LostDollar]

(My caveat, not an agent, have never owned my own business.)

http://www.insurance-forums.net/for...fice-staff-duties-advice-welcomed-t86803.html

My first suggestion would be to read the link DHK posted, with consideration to what the author says about service and sales. Then consider if you think that is applicable in the personal insurance industry and BOTH of you be in agreement as to why or why not.

My initial thought on the compensation would be to hourly.

See what the going rate in your area is for an office person; phones, typing, filing. Consider how much skill you think you are needing to add to that basic level and add something for that, say 10%-20% and see where you come out.
I would then bring the person in on a 90 day trial, with half the differential.

For example (numbers selected to make the math easy) if the basic office worker rate is $10 / hour and you decide your job is worth another 20%, start with $11.00 for the 90 days. At the end of that, they are either out or advanced to $12 per hour.

The company I last worked for also used temp agencies for employees during the trial period. Then if they worked out, they went ahead and hired the employee and paid the temp agency fee. There was a higher cost there in one way, but it also removed a lot of problems with "reasons for termination" from the employer's plate.
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http://www.insurance-forums.net/forum/senior-insurance-forum/temp-helper-during-aep-t85465.html

http://www.insurance-forums.net/for...ent-discussions/all-work-no-pay-t35664-2.html

http://www.insurance-forums.net/for...health-insurance-numbers-then-now-t70683.html

http://www.insurance-forums.net/for...ssions/appointment-setter-how-much-t6857.html

 

[InsCommentary]

A CSR is far from a basic office worker. Very very far. A good CSR knows the products of all the carriers you represent and an outstanding CSR is familiar with the products of the competition. A good CSR understands exposure analysis, what questions to ask about ownership, family relationships and residency, and other loss exposures. A good CSR can make the agency a lot of money. A bad "basic office worker" type CSR can run the agency into the ground and expose it to substantial E&O claims.

You are paying for knowledge and competency. There are online product tests a candidate can take (e.g., VMBhits) and personality tests (such as Caliper and Omnia) that can determine how suited the applicant is for service and sales work. The final compensation plan depends on many factors, including workload, degree of automation, involvement in claims handling, and on and on.

If you're looking for regional comparisons, I believe Marsh Berry still publishes salary information annually.