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In spite of a scary economy and a lingering soft market, top-performing agencies are investing in new production talent, according to the Big I’s 2008 Best Practices Study Update.

The study, which includes a “Rule of 20″ statistic that calculates if an agency is creating significant returns for its shareholders, reinforced that positive organic growth has been difficult for most agencies to achieve. Only the $1.25 million to $2.5 million revenue group achieved a “Rule of 20″ result greater than 20, the optimal threshold.Despite these statistics, among the Best Practices agencies that are adding new talent, most agencies with revenues over $2.5 million hired at least 1.5 new producers during the last fiscal year. The largest agencies, those with revenues over $25 million, hired an average of 9.4 producers. The average starting salary across all the revenue categories ranged from $52,000 to $95,000. The largest agencies hired more experienced producers, while those with lower revenue hired producers with either less sales or insurance experience.To view the complete study and a listing of the 2008 Best Practices agencies, visit www.bp.reaganconsulting.com.

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