When it comes to insurance employment, it's agood news/bad news scenario. The good news: The insurance industryis hiring. The bad news: Despite high unemployment in the past fewyears, it's still difficult to find skilled workers.  

The agency system is one segment of the economy that has ashortage of qualified individuals to fill openings. Notonly is it difficult to recruit experienced insurance employees,but it is also difficult to retain them.

Here are some steps to help evaluate your approach torecruitment and retention.

1. Make your agency attractive to candidates.Today's employees are looking for more than compensation andbenefits: They want to have a positive work environment whereemployees are rewarded for good performance and where everyoneshares in being part of a successful firm. 

Ask yourself if your agency has a positive image in thecommunity. Do you have a modern management approach with goodcommunication and support of employees' needs? Is your officecomfortable and attractive, with good automation support andequipment? Do you communicate your goals and reward your employeesfor achieving them?   

2. Utilize recruiters or searchfirms. In the past, agencies relied on referralsor used newspaper ads to recruit. Today,employment-centric sites and employee referrals can yieldcandidates, but it is time-consuming to review and screenthem. 

Because time is limited, most agencies prefer to use recruitersor search firms to fill positions. Search firms use theirdatabases and contacts to find quality people, and they start witha job description and a specific skills profile before making callsand screening the job candidates. They will also arrangeinterviews, facilitate communication throughout the process andassist with developing a compensationpackage.  

3. Examine how you selectemployees. Once a candidate is hired, he or shewill need to be trained and coached. An employee whoshould not have been hired will cost the agency not just in salaryand benefits but in the valuable time of other employees.

Two tools that can help managers make better hiring decisionsare behavioral interviewing and pre-employment assessment tools.Behavioral interviewing presents questions about the candidate'sactual job experience. For example, to assess serviceskills, the interviewer might ask how CSRs handled a difficultaccount or how they manage their time. Creating a standard list ofquestions to be used by all the agency interviewersassures good interviewing and enables the interviewing team tocompare notes. Pre-employment assessment tools can also avoidcostly hiring mistakes. Insurance tests can identify the level ofknowledge an individual has, and psychological testing can helpassess sales capability and predict the individual's ability tosucceed with the agency's sales approach.

4. Update your compensation plans. Compensationplans should be both competitive and rewarding. Periodically, theagency should review salary and benefits information to make suresalaries are truly competitive. It is also important to offer apay-for-performance compensation system that rewards employees forachieving results related to the agency's business goals.

Employees, however, also value rewards that are not monetary.Surveys conducted by The Society of Human Resources Managementindicate employees ranked interesting work, training, employerflexibility, feeling valued and advancement opportunities as topfactors influencing their decision to change jobs. 

Offering perks can also be a cost-effective way to attract andretain employees. Casual dress, flexible starting times, earningtime off (comp days, floating holidays or summer hours), jobsharing or using part-time positions provide the agency with apowerful advantage in the job market.

5. Ensure that your communication is effective.A good method for communicating individual expectations is throughthe performance-review process. Through periodic feedback,employees will understand how they're doing and what trainingopportunities they should pursue to develop their skills andknowledge.

Communication in general is important to modernemployees. They want to know how their work fits into thebig picture of the agency's vision and mission. They appreciatemonthly meetings that provide updates on plans and new developmentsand address their questions and concerns. They are also motivatedby public and personal recognition. Finally, they respectorganizations that ask for feedback on management and on the agencyoverall.

Finding and retaining good employees begins with a well-managedagency. Developing and promoting a positive organization andrewarding employees for their efforts are essential to performanceand maintaining a good reputation for your business, as well aseffective recruiting.