He recommends that when it comes to new hires, “good planning can take some of the sting out” of the anxiety over the long wait for profitability.

He said the owner should calculate the cost of a new producer before putting the classified ad out–much of which can be determined through the company's spread sheet.

Mr. Kaland advises patience, noting that for the first two-to-three years a new producer will cost the agency more than he or she will generate. He suggests that owners not set their expectations for the new producer too high and put too much pressure on them. Too much pressure can lead to burnout before they hit their stride, he warned.

“To help alleviate these growing pains, a written professional development plan is a must,” he wrote. The plan should define the producer's goals as worked out between management and the employee.

Mr. Kaland strongly suggests the benefit of training, both inside and outside of the agency. Such training can provide a strong foundation for a new producer or staff person and allows the individual to better serve their customer, he noted.

He added that when solid recruitment, screening and training helps an agency develop that one great producer, the long-term payoff can be tremendous.

Callout:

Putting too much pressure on new producers can lead to burnout before they hit their stride.