During the many years that I have placed people in insuranceagencies, I have asked them why they were interested in leavingtheir current positions. Conventional wisdom would make youthink that most people leave for more money, and some peopledo. However, although money is important, it is not the onlyreason why people leave.

Employees want to be paid a fair wage and have decent benefitsfor what they do. They also want to be rewarded for doing agood job with an annual raise or bonus. When they believetheir pay is fair, they begin to focus on other factors whichcreate job satisfaction. And when they have needs which arenot met in their current work environment, they may believe theonly way to meet those needs is work elsewhere.

Here are some of the most common reasons why people leave.

1. Financial recognition. Agency managementwalks a fine line between paying good wages and overpaying orunderpaying. Some state associations publish salary surveys,but in general, there is not a lot of good information aboutsalaries, particularly for non-service positions. As a result,some agencies are underpaying their employees. And when marketconditions take their toll on agency revenues, some agencies decideto forgo raises, but do not substitute the raise with a cash bonusor other short-term financial recognition. For key employees,financial recognition can take the form of deferred compensation,additional benefits or ownership. An agency that wants to growand maintain a certain level of success needs to share the wealthwith the people who are helping it succeed.
2. Mergers and acquisitions. When a business issold, employees must deal with a variety of changes, including anew organizational structure and position eliminations, a newcompensation plan or reduced benefits, new management and sometimesa new computer system. Employees who hoped for ownership maybe disappointed and others may fear their opportunity foradvancement is gone. When changes in ownership occur, it iscritical to communicate often and listen to the concerns thatemployees express.
3. The recession and the softmarket. Declining revenues have forced agencies tocut costs by implementing new technologies, streamlining proceduresand outsourcing work to India and China. As these productivityimprovements have occurred, agencies have also reduced staff or notreplaced positions when employees leave. As a result, someemployees are struggling to keep up with the new demands or newways of doing things. They may need additional training ormanagement support in order to be successful. When thissupport is not there, employees may become discouraged and be moreinterested in leaving.
4. Uninvolved management. In some agencies,principals are busy with their own accounts and the day-to-daydemands of running an agency. They are often not aware of theaspirations of the people who work for them. When owners andmanagers do not conduct annual reviews or have one-on-one meetingswith their employees, they can fail to learn about their interestin having more responsibility, pursuing an opportunity or movinginto a different position in the agency. In these situations,employees often believe they have no other choice but toleave.
5. Poor morale. Some agencies develop poormorale over time where employees are expected to do their jobs andnot expect any management attention. In these agencies,management does not pay attention to employee concerns or providerecognition for their employees. Often management does not believethat employees should have a voice or that their concerns areimportant. The perception might be that a slow computer systemor lack of training is not important. Or management maybelieve that CSRs do not need to be recognized when a producerretains a big account, or that flex time is not important to helpthem meet their family demands. In these agencies, someemployees will deal with poor morale and others will leave for amore employee-friendly company.
6. Poor sales support. Some agencies focus moreon retention than on new business sales. When talented salespeople work in these agencies, they want the resources and supportto produce additional business. In some situations, theprincipals are not willing to give their time to work with salespeople or help them with lead generation or salestechniques. In other situations, producers want salesmaterials or other resources to help them manage sales activitiesand sales success. When management does not focus on newbusiness and growth, these producers can become discouraged andseek other positions.

Any successful agency needs to retain its top people bylistening to them, providing resources and financial incentives andsolving problems in a timely fashion. Developing a positivework environment where there is opportunity for growth andrecognition and where people are appreciated goes a long way towardretaining employees and maintaining continuity.