Focusing your attention on where your skillset is generating the most value and traction while others are helping fulfill other functions of the agency is the primary way that you will achieve the growth you desire . •
AGENCY HIRING investment in growing your team will yield greater long-term results . By anticipating when you should hire , you can also make efforts to reduce some of the lost opportunity costs when you are going through this transition .
What are some ways to plan when it is the right time to hire ? Knowing your agency ’ s numbers can keep you ahead of the curve in preparation for when inviting others in to keep the traction going . Every agency is different , so understanding the data behind your workload can help you put indicators in place on when to consider bringing on someone else .
If you notice a shift in service work and less availability for production activity , pull a book of business report to gauge your current client and policy count . There are measured standards for productivity that agency staff can reasonably handle . Based on your agency ’ s book of business mix it could be a threshold of a certain policy count , revenue threshold , or combination of the two . Knowing where the “ tipping point ” is once your book gets to a certain size will help you look ahead to start searching for the appropriate support role before hiring out of desperation because one of the three functions is suffering .
This is something we help agencies recognize quite often through a productivity study . We can use your agency ’ s book of business and other service level data to help determine if staff is handling an appropriate amount of workload based on a few key data points . So , whether you are a team of one , a small team , or a large agency there are ways to evaluate productivity and see if you are appropriately staffed .
HIRING CAN SEEM EXPENSIVE , BUT THE RIGHT HIRE WILL PRODUCE MORE VALUE
One of the biggest hurdles to hiring is the next question , “ Can I afford to hire someone ?” The answer to this question can certainly depend on the amount of revenue the agency is generating , but also on determining which role you need to fill .
Outsourced services can seem expensive when you first start , but delegating roles to someone who is better equipped to complete the job provides you the support to reallocate your time to more valuable tasks like production or client service .
Are you struggling with administrative or data management tasks ? Virtual assistants are a great way to delegate admin or operational functions of your business that may not require a licensed agent to complete . Part of the onboarding process when hiring a virtual assistant is ensuring high confidence in training to accomplish the assigned roles . So again , this is a system that allows you to outsource transactional roles to someone skilled in completing those roles efficiently .
If outsourcing or non-licensed contract hires are not the right options for the first role you need to be filled , then understanding the cost of hiring an employee becomes a little more important . Hiring a W2 employee requires a few other residual costs that should be accounted for when budgeting for your first hire . You ’ ll likely need to cover payroll taxes , potential benefits costs , workers ' compensation insurance , and others depending on your local labor laws .
Focusing your attention on where your skillset is generating the most value and traction while others are helping fulfill other functions of the agency is the primary way that you will achieve the growth you desire . •
Colby Allen is a consultant and financial analyst for AgencyFocus , a financial consulting firm that works with independent agencies on valuation , perpetuation , M & A , CFO services and more . He has over 11 years of experience working in analytics for insurance agencies and carriers . He ' s worked with hundreds of producers on managing profit and achieving growth at the same time .
He may be contacted at colby @ agency-focus . com for more information .
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