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...000 in total commissions you could award them a bonus equal to 50% of the comm...t in mind when setting up incentive programs. The average insurance agency spe...

...gnized by everyone that zero bonus awards are inevitable in some years. Agency...however, that these success-sharing programs will only work in successful agen...

...icle, we discussed the practice of awarding deferred compensation to producers..., Surety). In those situations, the programs can be set up to reward the produ...

... variety of incentives: CSRs may earn financial rewards either on an individual bases (such as cash payments for prospects or X-dates, or sales commissions-if the employee is licensed) or as members of the agency (through a profit-sharing plan, bonuses, or a share of contingency commissions) . Non-financial rewards might include anything from free trips, home appliances, or even a car to such warm fuzzies' as a CSR of the month' award. To give you some idea of how creative agents can combine these incentives to develop effective ... compensation plans, here are several examples chosen from interviews with hundreds of agencies, large and small, throughout the nation over the last five years: Afton Insurance Agency, Houston, Texas. CSRs receive a fixed commission for each sale they make, with the money deposited each month into savings accounts the agency has opened for them. The CSRs love the program: one has earned a piano, another has a new VCR, and all of them have hefty balances in their accounts. Anderson Insurance, Valdosta, Georgia, Principal ... (customers' questions about billings, endorsement, claims, and so forth that arise after the sale) whenever your producers are out selling-which should be at least 80% of their working day. In other words, your CSRs form the backbone of the customer relations program which you need to survive-and thrive-in today's consumerist society. CSRs who are producing sales and earnings for your agency deserve a compensation system that is: a) based on financial and extra-financial incentives; b) consistent or equitable (applies equally to every CSR); ...

... variety of incentives: CSRs may earn financial rewards either on an individual bases (such as cash payments for prospects or X-dates, or sales commissions-if the employee is licensed) or as members of the agency (through a profit-sharing plan, bonuses, or a share of contingency commissions) . Non-financial rewards might include anything from free trips, home appliances, or even a car to such warm fuzzies' as a CSR of the month' award. To give you some idea of how creative agents can combine these incentives to develop effective ... compensation plans, here are several examples chosen from interviews with hundreds of agencies, large and small, throughout the nation over the last five years: Afton Insurance Agency, Houston, Texas. CSRs receive a fixed commission for each sale they make, with the money deposited each month into savings accounts the agency has opened for them. The CSRs love the program: one has earned a piano, another has a new VCR, and all of them have hefty balances in their accounts. Anderson Insurance, Valdosta, Georgia, Principal ... (customers' questions about billings, endorsement, claims, and so forth that arise after the sale) whenever your producers are out selling-which should be at least 80% of their working day. In other words, your CSRs form the backbone of the customer relations program which you need to survive-and thrive-in today's consumerist society. CSRs who are producing sales and earnings for your agency deserve a compensation system that is: a) based on financial and extra-financial incentives; b) consistent or equitable (applies equally to every CSR); ...

...ional sessions, panel discussions, award presentations, and networking opportu...s not afraid to experiment with new programs and member incentives and often f...

...issions (or per-policy flat dollar awards) for sales. The CSRs would be reward... in the past, the majority of these programs paid the CSR a percentage of new ...

... number of years with or without interest or it can be based upon the retention of the business over a two or three year period after the producer leaves [note: we prefer the latter] . Option for Conversion of Vested Value into Agency Stock-Can be guaranteed, contingent upon reaching production goals, at agency owners' option in the future, not included as an alternative at all. All producer vesting contracts should clearly state that this is simply a right to receive deferred compensation and that the ownership of the expirations remains with the ... yet. &# 160 EMPLOYEE OWNERSHIP OPPORTUNITIES by Carol Hammes One of the key elements in creating a team of employees dedicated to achieving agency objectives is to provide meaningful incentives that will reward individuals for their support of the group effort. When commissions, bonuses, and awards are used in conjunction with a participatory management style and an overall atmosphere of mutual respect, such performance-based rewards will help maintain the necessary level of enthusiasm. But sooner or later most agency owners will be faced with the question of whether to give employees the opportunity ... upon the desire to reward performance. When the best producers lack the other qualities that you want in fellow owners, you should offer other types of incentives. In evaluating the many options now available, it is important to remember that implementing any type of equity sharing program is more permanent than simply giving a raise or bonus. Before entering into any arrangement that ties individual performance to the value of a book of business or to the value of the agency as a whole, it is essential that all of the owners come to ...

...rt. When commissions, bonuses, and awards are used in conjunction with a parti...e phantom stock or performance unit programs can be expanded to include all em...

... that the reward is high enough to provide real incentives and yet not so rich that it breaks the bank. It should also be recognized by everyone that zero bonus awards are inevitable in some years. Agency Incentive Plan-Payout is 5% (more or less) of contingent income received and/or 5% (more or less) of commission growth in agency or department. Employees may have bonus shares based simply upon head count for people who have been with the agency for the full year and pro rated for others. Or ... and for the payout. Make sure that the objectives can be reasonably be accomplished in your agency and that the reward is high enough to provide real incentives and yet not so rich that it breaks the bank. It should also be recognized by everyone that zero bonus awards are inevitable in some years. Agency Incentive Plan-Payout is 5% (more or less) of contingent income received and/or 5% (more or less) of commission growth in agency or department. Employees may have bonus shares based simply upon head count ... or an increase in compensation; each employee has the opportunity to advance as far as he/she wants to and is capable of; there is a systematic and fair method of adjusting compensation based on performance. There are five steps involved in implementing a salary administration program: 1. understand the job involved; 2. determine what the job is worth; 3. relate compensation to similar jobs in other agencies; 4. reward individual achievement; 5. establish policies, guidelines, and procedures for administering pay. The starting ...