| HIRING THE RIGHT PRODUCER by Peggy Mika The personality traits of a Commercial Lines producer are different from those of a Personal Lines specialist. However, experts agree that selling either line requires empathy, ego drive, and ego strength. 'We had a guy in the agency this morning trying to sell us coffee. After he left, I looked at my partner and said, 'he should be selling insurance with us!'' According to professional hiring experts and agents who hire regularly, that kind of thinking is the key to success. Prospecting for new producers should become second nature to agency owners and managers as prospecting for clients. Keeping a formal filing system on recruits can make the hiring process orderly and successful. The other alternative is 'hiring a body' under the gun, which can be expensive, frustrating and demoralizing. And it usually brings in a poor candidate. Ronald Wood says he and his partners have attacked the problem both ways. They are satisfied that 'hiring bodies' just doesn't work. Wood is executive vice president with McGee & Thielen Insurance Brokers, Inc., Sacramento, CA. Once the partners recognized that their hiring techniques were faulty, they developed a hiring 'process.' It turns out that their process is similar to those advocated by other successful agents and industry consultants. The process begins before a new producer is actually required. 'We have a backlog of potential prospects,' Wood said. 'The individuals who are in this pool may or may not be aware that the agents consider them prospective recruits.' he added. Among the prospects are competing agents who might have 'stolen' an account from McGee & Thielen, people who have submitted resumes which look promising, and the individuals who have caught the attention of a partner. Often someone who is satisfied with his current job, is the agent's best potential new employee. If the agent keeps in touch with that person, and watches for him or her to become discontent, the person can be recruited. When It's Time to Hire If it's time to hire, it might also be time to review agency job descriptions, according to management experts. By reviewing everyone's current workload, the agency managers can determine exactly what job is open. When the opening calls for a producer, look for empathy, ego drive, and ego strength traits in your candidates. According to personality studies a successful salesperson will have all of those characteristics. With empathy, the salesperson can relate to the client. The ego drive fuels his energy to work and with ego strength, he won't become defeated by the negative responses he encounters along the way. But agents should be aware that there are personality traits to look for in a Commercial Lines producer which are different from those required in a Personal Lines specialist. Agents who are planning to hire a Commercial Lines producer should be aware of some of those traits. Empathy, ego drive (motivated by a positive response), and ego strength (the ability to take the 'no' response) are the characteristics found in all good salespeople. Most experts agree on those three 'facts,' according to Caliper Assessment. However, Herbert Greenberg, chairman and CEO of Caliper, offers a list of 10 personality traits which his firm has found in successful Commercial Lines producers. They include: 1) A very strong level of personal organization and persistence. This isn't the 'quick-and-dirty sale,' which can often be associated with Personal Lines. 2) Excellent product knowledge. Commercial insurance products are organized and reorganized by the producer into a package which suits the many needs of the client. In Personal Lines the products are usually more generic, so product knowledge is less important to the sale. 3) The ability to present a 'consultative demeanor.' That is, to present oneself as an expert whom the client can call upon to consult regarding insurance matters. 4) Detail orientation. The Personal Lines producer often turns the details over to the agency staff after the sale is made. However, the Commercial Lines producer must be able to learn the details of the client's business and must know the details of his products, so he can create not only a salable package, but so that the client is properly covered. 5) Service motivated. The Commercial Lines producer is more involved in services than the Personal Lines producer is, so he must also be gratified when service is required. 6) The ability to think on your feet. The Commercial Lines producer must be able to adjust his presentation and package to different audiences and as new information is presented-even if it comes to light during the presentation. 7) The ability to be a team player. The Commercial Lines producer often has to call upon company people or other members of the agency for help with coverages out of his area of expertise. Some salespeople have too great an ego to admit that they need to be part of the team. 8) Assertiveness. The Commercial Lines producer must deal with 'tough' people. These people are accustomed to running things and are busy and powerful. So the Commercial Lines agent must be more assertive than the Personal Lines producer. 9) Strong presentation skills. 10) Self-starter. While many Personal Lines leads are walk-in or call-in business, Commercial Lines sales require more initiative on the part of the producer. Prospect Sources There are many sources to consider when the search for a new producer is on. The first should be the agency's pool of potential candidates. Others include recommendations from office employees, clients, and company officials; students graduating from college with a degree in marketing or insurance; and employment agencies. The agency might also run an advertisement in the newspaper or a trade journal. The ad should carry a complete job description, but many experts advise against looking for actual insurance sales experience. Instead, they say, describe the personality characteristics of a good salesperson and consider all applicants who have those qualities. Wood points out that he and his partners decided they do not have the time to be trainers. So, they look for demonstrated sales skills, but don't require an insurance sales background. Step by Step McGee & Thielen Partners follow a five-step hiring process which takes about five weeks, Wood said. First, one or two of the partners meet a candidate in a brief interview. If the candidate passes that interview, he is asked to fill out a 'very standard' application and submit a resume. A resume is often more revealing than an application, Wood said. Some professional recruiters recommend that the first interview be conducted over the telephone. Since many insurance sales begin with a phone call, a conversation over the phone with a potential candidate can be very telling for the hiring agents. Every partner at McGee & Thielen reviews the resumes and applications of potential producers, Wood said. This is step three. If the candidate passes this scrutiny, he will be asked to meet with all four partners. In this interview, they assess the candidate's appearance, responsiveness, and ability to communicate. They also try to get a feel for whether he will fit in with the current staff members, Wood said. In addition, they try to assess the candidate's insurance skills. They ask the candidate how he would get leads, what type of support system he would require, and how he would put together a proposal. This interview, or another get-acquainted interview, can be done away from the office, some consultants say. By conducting the interview in a social setting-at dinner or on the golf course-the hiring agent can see how the candidate reacts in a different setting. Some also suggest that it's appropriate at this point to meet with the candidate and his or her spouse. It can be important to be sure that the spouse is aware of the time involved in insurance sales and is supportive. A candidate who passes through the interview phase at McGee & Thielen is asked to come into the agency and take a personality test. McGee & Thielen use the Caliper test, which is endorsed by IIAA. 'Nine times out of 10, we take the advice from Caliper,' Wood said. If the test says don't hire, they don't. 'We've been surprised a couple of times to get negative test results on a candidate we thought was promising,' Wood said. Even if the test results are positive, the partners review all of the information they have about a candidate before offering the job-which is done in the fifth and final step, Wood said. In six years, his agency has hired 11 Commercial Lines producers using this system and only one hire did not work out, Wood said. Overall, the partners are looking for a person who 'will get out and knock on doors.' That is, someone who has the drive and desire to be a salesperson, Wood said. They are also looking for a person who agrees with the philosophy and operation of the agency, he said. 'We pride ourselves in maintaining a professional image and a candidate must display that image,' Wood said. Their best hires have been people who have 'grown up' in the industry, he added. Veteran or Rookie? The question of whether to hire a person with an insurance sales background or hire a rookie and train him always brings a different response. An experienced insurance producer who is willing to move to a new agency may be trouble for the new agency, according to many advisers. He may have several years of experience-all bad. He may be planning to retire. He may have been in the wrong job for many, many years. He will almost always command a higher salary than a newcomer. One agent who has had luck hiring producers over the years points out that previously the partners in his office were a bread man, a teacher, and a mailman. Steve Goodfellow, Ph.D., CPCU advocates hiring a young person - a college grad with sales aptitude - and training him or her in the insurance business. Goodfellow is president of Business Insurance Services in Tallahassee, Fla., and was previously director of management programs for the Florida Association of Insurance Agents. While he was with the Florida association, he conducted a program called 'Up-Start' in which he recruited and hired 14 college graduates and placed them in sales positions throughout Florida. About Tests Many agents are skeptical about using personality or psychological profile tests when hiring. They prefer to go by a 'gut reaction.' But there are persuasive arguments for using them as part of the hiring process. The interview process is really a kind of 'theater,' says Greenberg. 'Tests can get beyond the facade of the interview to reveal more about the personality' of the candidate, he said. 'They can be an objective tool' to use in addition to the interview. Personality tests are considered very accurate (up to 90%). With a good job description, the tests can be very specific about whether an individual will work out in a particular job. If the screening company has information about the agency's staff, it can also offer an opinion about whether the candidate will fit in at the office. The Caliper test costs $150 per analysis (there is a discount for IIAA members), while the cost of a hiring mistake can run in the thousands of dollars. Some experts suggest that five times the salary of a new hire is an accurate estimate of what can be lost with a bad hire. The Interview Steve Goodfellow, president of Business Insurance Services, recommends a few 'key' questions when interviewing recent college graduates: - What course did you like the best? Responses indicated whether the candidate was detail-oriented and organized, for example.
- Describe your 'ideal job.' Goodfellow says that the response can reveal a quest for power and an ego. Both traits are found in good salespeople. It can be used to weed-out dreamers as well.
Kinder Brothers, well-known life insurance producers and lecturers, offer these tips on listening skills: - Try not to dominate the conversation.
- Put the applicant at ease.
- Show the person that you want to listen.
- Remove any distractions.
- Empathize.
- Be patient.
- Avoid arguments or criticism.
- Ask questions.
- Hold your temper.
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