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...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...

...as, it might not be appropriate to award shares based on the value of the tot... phantom stock or performance unit programs to include all employees, rather ...

... 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); ...

... 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); ...

...ng plan, bonuses, or a share of contingency commissions). Non-financial reward...h CSR receives 10% of the agency's contingency commissions, plus a pro-rata sh...

...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 ...

... a lot more than you'd anticipated. There are several ways to create an agency or department bonus pool. One or a combination of several might be right for you: Difference between base salaries and a target of 22% -23% of revenues 25% of contingent income Percentage of overall increase in agency, department, or unit commissions or revenues Percentage of total revenues or commissions Percentage of agency profits before owner bonuses If revenues per employee increase over a certain threshold, a percentage of this amount could create the pool After you ... book of business of around $250,000 in commissions. An agency can set up incentives that reward producers who develop books that are in excess of their average. For example, if a producer has more than $300,000 in total commissions you could award them a bonus equal to 50% of the commissions in excess of that level, an increase in their car allowance, or a higher commission percentage for that year. You can treat accounts that are part of a separate marketing program differently. You can also ... extra points or dollars on accounts for which the producer has provided leads that have resulted in employee benefits or Life sales. There are hundreds of possible bonus formulas that you can use to encourage producers to perform at higher levels. Keep the plan relatively simple, however, in order to avoid administrative gridlock. Another reward can be some sort of equity, either in the producer's book or in the agency itself. The best way to provide equity in the book of business is to set up a deferred compensation plan while still maintaining ...