I'm just curious if any of your agency's offer a bonus to all employees based on profit sharing monies received from carriers? If so, how do you split it up, is it a flat percentage to everyone or does it vary based on dept? Any other type of incentive offered to employees?
Thanks.
Due to so many carriers cutting contingencies, and the fact that what is received often is all that keeps the agency from being in the hole - haven't seen this done for a while. Have used incentives to encourage types of business wanted - CSRs for rounding out house accounts, producers for increasing commission income over prior period by certain percent.
Quote from: Robin Deatherage on July 14, 2010, 12:12:48 PM
I'm just curious if any of your agency's offer a bonus to all employees based on profit sharing monies received from carriers? If so, how do you split it up, is it a flat percentage to everyone or does it vary based on dept? Any other type of incentive offered to employees?
Thanks.
Because we as agents (principals, CSRs, producers, everyone) really have little control over whether we receive a contingency payout or not, I don't think it's a good model to use for bonuses. About the only degree that we have over it is being selective about who we insure, but that still doesn't affect weather, the unfortunate bad accident or work comp claims that can prevent getting one. Lance's suggestions about account rounding, retention, growth and others are better goals to reward. Even the best screening is still a crap shoot - that's why we sell insurance!
Thanks for the feedback Lance and Jim.
I've seen it done, and it's never something I would recommend.
In short, you're tying the bonus of one person to the production of another. If the Producers write lots of business and you get a bonus, it's a happy day. If the Producers fail to do so and you don't get a bonus, there's a LOT of animosity.
Support staff already feel like they're riding at the back of the bus. No need to add insult to injury.
Performance-based incentives are a great way to motivate existing staff and attract the right kind of new hires. The incentives need to be based on their actual performance, not the performance of others.
If it's a team bonus, you need to make sure there are mechanisms in place so that members of the team have some control over outcome (i.e. the ability to fire/remove under-performing members.)