Agencies need a detailed plan when bringing on newproducers. Here are the key steps for hiring and trainingproducers. Do your best in training the new producers so theycan do their best in providing revenue and accounts for youragency.

Click on the following pages to discover the ten steps you needto take to hire the best new producer for your agency.

1. Start with quality. Behavioral testing should bethe initial screening tool for every new producer candidate.Caliper, Omnia, and DiSC all have a proven track record. We like DISC because itcan be used as a selection tool, and as a management tool shouldthe candidate be hired. We also test the individual who will beresponsible for mentoring the new producer. Then we compare theresults to determine if there is a good fit. These behavioral testsare very accurate. Ignoring their advice can be a very expensivelesson.

2. Use athrough interview process. Enlist multiple interviewers,if possible. Don't allow the candidate to interview you. Interviewto both “can do” (Does the candidate have the skill set to do thejob?) and “will do” (Is the candidate motivated to do the job?).Seek training in interviewing skills if needed or involve aprofessional. It's time and money well spent. Don't settle formediocrity; walk away from any candidate who is not a good fit foryour agency. There are plenty of others available given the currenteconomy. Developing a pool of candidates to select fromimproves the odds of making a successful hire, but be prepared toact quickly if the opportunity to snag that textbook candidateshould surface unexpectedly. Recruit “from the market” if you can;hire a former contractor to pursue the contractor market, forexample.

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3. Beprepared. We know new producers want to succeed quickly,but starting up in our business is not easy. Newbies need lots ofstructure in the beginning. Creating this structure takes time andplanning, but the payoff can far exceed the effort required.Provide the new producer with a written training curriculum beforehe or she joins the agency. This document or Excel spreadsheetshould identify each training need to be addressed, the source ofthe training, and the date the training is to be completed. Thisway, the producer can be held responsible for completing thetraining program and it is one less detail for the acting salesmanager.

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4. Include both technical training and sales training for theproducer. But as insurance great John Savage used to say,“Technical skills only account for about 5% of my success. Theother 95% is people skills. But you've got to have 100% of the95%.” That was John's way of saying it's a given that a newproducer must have the necessary insurance knowledge to function inthe business. But a producer is not paid for what he knows, he'spaid for what he does. And this takes sales skills.

The NationalUnderwriter's CLCS self-study program is an excellent basiccourse in commercial coverages. A.M. Best's underwriting guides area great resource for new producers. The National Alliance'sDynamics of Selling seminar is hands down the best in the industryfor sales training.

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5. Carefully review the compensation plan with new producersbefore they start. Our experience has been that few newproducers understand how they are paid. This can be disastrous.There should be no surprises when the producer fails to qualify forthe bonus or falls short of the amount needed to validate salary.Regularly review the compensation plan with the producer. Newproducers need an initial income adequate to meet their currentexpenses, and for long enough to give them time to establish theirbook of business. We've seen good new producers leaveagencies because they couldn't pay their bills. A compensation planthat gradually reduces subsidy will encourage failing producers to“self eliminate.”

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6. Provide close supervision. Close supervisionis critical to help the new producer establish good work habits.This probably means daily contact at first, even if it's just tomeet for coffee each morning. New producers should stay out of theoffice during business hours. That time is reserved for prospectingand selling. Establish high expectations: 10- to 12-hour days, 5and a half days per week. Young producers have tremendous energy.Show them how to use it. After all, you have given this producer awonderful opportunity to build a business with no financialinvestment. New producers need lots of direction. Don't leave it upto them to figure it out.

7. Provide a sales manager; every new producer needsone. If the agency can't support a full-time sales managerfor the new producer, identify someone as acting sales manager forhim or herthe new producer. This could be an agency owner, anexperienced producer, or even an outside consultant. But someoneneeds to hold the producer accountable for meeting initialprospecting goals, conduct role playing sales scenarios, andaccompany the producer on sales calls. New producers need lots offeedback and positive reinforcement. This may be the mostimportant role of the sales manager.

8. Establish prospecting goals right away, and demand they bemet. Typically, producers who are fast out of the gate arealso fast in the stretch. If the new producer consistently missesprospecting goals, the writing may already be on the wall: Noprospects, no sales.

9. Discourage new producers from practice quoting.Besides wasting valuable time on the part of agency and companypersonnel, not closing sales is demoralizing to the new producer.Producers, new and experienced, should focus on quoting accountswhere they have a legitimate opportunity of closing the sale.

10. Hire slow, firefast. Becoming a new producer is a life-changing decision,one that affects everyone in his circle of friends and family.Likewise, the decision to bring a new producer on board affectseveryone in the agency, and the prospects and clients he or sheencounters. A lot is at stake for all parties. The new producerdeserves the best chance possible of becoming successful in ourbusiness. Effective training, supervision, and agency support arecritical. The agency is entitled to the new producer's commitmentof time and energy required to begin building a book ofbusiness.

If the required prospecting activity is not taking place, salescannot be forthcoming, so don't wait for the inevitable beforecutting the producer loose. It's no favor to the new producer toprolong an inevitable outcome. An unhappy producer can doimmeasurable harm to the agency. A bad attitude can spread to otherproducers and to staff. The agency's reputation may suffer. And thelonger it goes, the worse it gets. If you've provided the producerwith clearly stated prospecting and sales goals, a comprehensivecurriculum with both technical and sales training, regular reviewsof the validation plan, and lots of positive feedback, and he stilldoesn't succeed, it's time to cut your losses and allow theproducer to move on.