A Few Ways to Reduce Employee Turnover

There are several ways to reduce employee turnover.

First, review agency compensation packages to ensure commission rates, salaries and benefits are in line with the market. Start by benchmarking compensation by position against insurance agencies of a similar revenue size, with similar average account sizes, or in a similar region or metropolitan area. Next, develop salary bands or ranges for each position.

To retain key employees, it is important to link pay to performance. Recognize above average employees and reward them for their efforts.

Before posting an open position, develop a position description to outline the roles and responsibilities, and identify the necessary skills for the position. It is critical to select the right person for the position. Utilize employee assessment tests to screen the candidates and identify whether their personality characteristics will match the position.

Once hired, employees need to know what is expected. Communicate the roles, responsibilities and goals for each position. In addition to annual performance evaluations, employers should regularly praise good efforts and provide feedback on the individual’s performance.

Create career paths to illustrate how an individual’s career could progress through the organization. Implementing a four-tier service model allows service personnel to progress from an entry-level processing role to a high-level account executive.

Provide opportunities for employees to share their knowledge. This can occur through one-on-one training sessions and mentoring. For example, the mentor assigned to a new producer should be an experienced producer who provides direction about the types of business to target and assists with sales training by going on new business calls.

Employees will leave. Use the departure as an opportunity to get feedback on ways to improve the organization. Conduct exit interviews with employees to understand the positive and negative aspects of the agency.