Back in the 1920s, the Western Electric Co. conducted a series of experiments to determine the relationship between lighting and productivity. The expectation was that test results would encourage industries to use artificial lighting in place of natural light. Researchers were surprised to find that productivity increased in both the group that had been provided improved lighting and those who continued to work in a poorly lit environment.
Then they conducted a second series of studies to determine how working hours, rest periods, bonus incentives and supervision affected workers' productivity. The conclusion was that although these factors had an impact, the attitudes of the employees experiencing the factors were of greater significance.
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In addition to the individuals who participated in these studies, Western Electric interviewed more than 21,000 workers to determine the specific features of their jobs they either liked or disliked. The objective was to identify areas where reasonable improvements might lead to greater job satisfaction and increased efficiency and productivity.
Researchers concluded that prior life experience had an important influence on worker attitudes, and that manipulation of lighting, pay, supervision and working conditions could not solely bring about a desired change. The one consistent conclusion was that employees felt more positive about the work environment when an interviewer or listener showed an interest in them.
In these experiments, when management made workers feel valued and aware that their concerns were taken seriously, greater productivity resulted.
Fast forward 85 or so years to a recent study called "Independent Insurance Agents and Brokers: The Generation Gap." This study surveyed 47 agencies and brokerages, all affiliated with Assurex. The objective was to determine perceived generational differences in the workplace among baby boomers (born 1946 to 1964), Generation X (born 1965 to 1979) and millennials (born 1980 to 2000). Nearly 5,000 respondents participated in the survey.
Among the findings: "Millennials prefer frequent and exhaustive feedback on their performance, as well as lots of coaching, guidance and mentorship—more than their managers ever received when they started out in the business." On the other hand, the typical response from boomers and Gen X was, "I never had a lot of handholding and training when I was their age, so why should they?"
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Of course, the boomers and Gen X responding belong to that elite group of agents who survived this "sink or swim" methodology, and are still in the business. Today, many of them are in management or are agency owners. But could it be that the reason two-thirds of the producers in their generation didn't survive even through the second year in the business is because of the lack of handholding and training?
My business partner and I have coached more than 1,600 new property-casualty producers over the past 17 years. They were required to report in detail all prospecting and sales activity for 12 months, and they were held accountable for meeting specific prospecting and sales goals during weekly phone coaching sessions. The documented survival rate of the new producers we've coached is about twice that of the industry; about two-thirds of our producers survive into the second year, compared to the industry average of one-third. The lessons we've learned in large part mirror the findings of both the Western Electric and the Assurex studies:
Lesson #1: New producers need positive reinforcement
New producers want to succeed, and they want to do what's right. But they become discouraged easily. Given the amount of rejection and negativity inherent in sales, it's not surprising that standing back while new producers try to find their own way results in failure most of the time.
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And rejection doesn't just come from prospects. The office staff may also be a source of rejection for the new producer. Some staffers take the attitude that the new producer creates extra work for them, asks a lot of dumb questions, has a low close ratio, and may not be around in 6 months. This can create a jaundiced attitude on the part of the agency support team, and influence how they respond to future new producers. It's important for agency staff to understand the value of a new producer to the future of the agency and to their futures as well.
The new producer's family may also be a source of negativity. "You're going to miss the soccer game again, Dad?" "Are you ever going to get off that computer?" If the new producer is hearing little in the way of positive reinforcement from agency management and receiving negatives from prospects, agency staff, and family, then it should be no surprise when performance drops off.
Lesson #2: New producers need close supervision
A recent survey of newer producers identified "freedom" as the No. 1 reason they were attracted to the business. That same survey indicated "time management" as their No. 1 challenge once they entered the business ("The Young Producer Study," Reagan Consulting).
This is no coincidence. Most new producers have been accustomed to close supervision throughout their life from parents, teachers, coaches, commanding officers and supervisors. Conversely, most new producers receive very little supervision when they begin working in an agency.
Again, it's no wonder so many fail. New producers need and want structure and close supervision at the beginning of their careers. It's unreasonable and unfair to assume they can figure it out on their own.
Lesson #3: New producers need a formalized training curriculum
Every agency, regardless of size, needs a formalized training curriculum for new producers. This can be as simple as compiling a list of topics, training resources and required completion dates. Written case study assignments that focus on specific types of risks can be an effective training tool. In addition to technical insurance education and sales training, new producers also need to understand office procedures, learn how to use agency automation and understand relationships with agency and company personnel. Training should be sales oriented and results driven.
Lesson #4: New producers need a structured sales process
Sales will happen when a process has been put in place and new producers are required to follow it. New producers need an organized, systematic sales procedure that is activity driven. They need to understand the underlying steps in the sales cycle that drive sales, and how that affects time management. Weekly objectives for prospecting calls, appointments scheduled and proposals presented must be developed appropriate to the market being targeted. It's this accountability that helps producers develop work habits that over time become "hard wired." They also need to know when to walk away from a prospect that has low closing potential.
New producers have made a life-changing decision to enter the insurance business. They deserve the close attention of agency management, which can be time consuming and inconvenient. But a successful new producer can ignite sales and become a catalyst for agency growth.
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