Hiring and Firing

Aug 4, 2014

  1. AdvisorsIns
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    AdvisorsIns Guru

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    I have a producer that has generated 78k in personal lines home and auto premium in the first nine months. Including some base pay I'm in the whole 8k. Considering cutting him loose. I was thinking at least 300k in first year in sales.

    Thoughts?
     
  2. djs
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    djs Super Moderator Moderator

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    Is he a seasoned producer? $300K is doable, but you have to hit the ground running to make it happen. A new producer doesn't have the systems and familiarity to hit this benchmark in the first year.

    Is his production growing? Is he doing the right things?

    Its always hard to tell what the right thing to do is without a LOT more information.

    Big question is though, how is he doing versus the rest of the agency? Is production on par? Below or above average?

    Dan
     
    djs, Aug 4, 2014
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  3. CaptiveGuy
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    CaptiveGuy Guru

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    I wouldn't waste my time with any producer who could not produce $250k+ a year in premium. Not worth the payroll taxes, time training, and managing in my opinion if they can't sell.

    I have a CSR and an admin who can take down quote info and issue policies. I do the marketing they write it. Much safer for me to not depend on a producer to bring in the business.
     
    Last edited: Aug 5, 2014
  4. xrac
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    xrac Guru

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    You can give them a sales goal to hit for the next three months or be let go. They will either rise to the challenge or quit before three months is up.
     
    xrac, Aug 5, 2014
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  5. VolAgent
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    VolAgent Guru

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    I'm with Dan. If he is growing and on or close to a pace to write 250k+ in the next twelve months, I'd think about keeping him. Particularly if his business is especially profitable, going to help you hit some bonuses and/or he is a good employee.

    Food for thought, how much did you write in your first year? If it was more, what did you do differently and maybe it is time for some coaching? If it was less, why are you holding him to a higher standard?

    To expand on that, when was the last time you talked with the producer about his production, his marketing methods, hitting and achieving goals, etc? He is failing as a producer, but did you fail him as a boss?
     
  6. F150
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    F150 Guru

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    your first mistake is placing a GWP quota.....

    While a HO policy in florida or Texas can be in the $2-4000 range, in my area, its $800....

    What if they are issuing alot of policies, but you find out they are renters policies...which means, they are active, just in the wrong area....

    Secondly, What have YOU done as a mentor to help them? did you train them? did you just hand them a phone book and say start dialing?

    Dont always blame the producer, its up to YOU also.
     
    F150, Aug 5, 2014
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  7. shawnmwalker
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    shawnmwalker Guru

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    $8,666 in Monthly WP dos seem very low. 10%of that is $866. You might have a player. Set standard at 30k and when he hits 22k next month everyone is smiling. Add pay and he might be bringing home 2k a month.

    I'm with Voltron: Set a goal of X wp a month and reevaluate in three.
     
  8. Sales71
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    Sales71 Guru

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    If he is only selling and no service then fire him/her. That is low production sand bag.:swoon::cool::skeptical:
     
    Sales71, Aug 5, 2014
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  9. AdvisorsIns
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    AdvisorsIns Guru

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    I have set clear goals for him. 20k minimum written business and no less than 30 new policies per month. That is 1 per calendar day. 1 a day will keep the man away. He is aware of them and is underperforming. We have a CSR and all major carriers on service centers.

    Do you think nine months is enough time?
     
  10. xrac
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    xrac Guru

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    Trust your gut............he is not your man.
     
    Last edited: Aug 6, 2014
    xrac, Aug 5, 2014
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