The insurance market faces a wave of retirements - often called the Silver Tsunami - and is struggling to attract new talent to fill the growing number of open positions. As skilled employees retire, agencies are working on transferring their knowledge to keep valuable expertise within the business and prepare the next generation.
Given these challenges, how can you create an environment where employees are motivated, productive, and aligned with your agency's goals? We interviewed Eric Kuhen, VP of Growth Advisory for MarshBerry, a global leader in financial services and consulting, to discuss approaches you can take to develop a high-performance culture for your team while fostering growth, development, and success. The interview has been condensed and edited for clarity.
Set Clear Goals
Clarity is crucial for high performance. Your team needs to understand what is expected of them and how their efforts contribute to the agency’s success. Clear, measurable goals and Key Performance Indicators (KPIs) provide direction and a sense of purpose. Communicate these goals regularly and update them as necessary to ensure they remain relevant and achievable.
As Kuhen adds, setting goals is just one part of the solution. “While having a target is important, the likelihood of failure increases without a structured and intentional plan to achieve those goals. In fact, only 23% of producers have established business plans that they actively follow on a weekly or monthly basis to stay on track. The correlating industry stat is that only 27% of new producers validate. Effective management plays a crucial role by consistently reinforcing and developing these plans to ensure success and holding team members accountable.”
Foster Accountability
Accountability is about ensuring that everyone takes ownership of their tasks and responsibilities. Implementing transparent systems for tracking goals and scheduling regular performance reviews or update sessions to help maintain this. When employees are held accountable in a respectful way, they are more likely to stay committed and focused on their objectives.
“A culture of accountability starts with leadership,” shares Kuhen. It’s baked into SOPs and how people work every day. People inherently do not embrace change unless they are shown the WIFM (What’s in it for me?) Failed initiatives typically fail because of the lack of accountability from leadership. Employees flounder or get stuck in one position because they are not being held accountable to meet minimum standards, let alone perform better.”
He continues, “If your firm lacks accountability, it can be toxic for your entire staff. It works both ways; leaders also need to be held accountable for their lack of action or follow-through. Deadlines should be checked and updated frequently so everyone is on the same page and has a chance to ask for assistance if needed.”
Lead by Example
Leadership sets the tone for the entire organization. Leaders who demonstrate hard work, integrity, and commitment inspire their teams to follow suit. Embodying the values and behaviors you wish to see in your employees creates a model for high performance.
Kuhen says he has seen mentorship have a huge impact in this area. “Establishing a clear path for leadership begins with fostering an environment that encourages and rewards mentoring. In fact, 87% of current leaders report that having a strong mentor played a crucial role in their development as effective mentors themselves. Leaders need to dedicate time to support their teams in paving a path forward. Additionally, as our population ages, projections indicate that more people will turn 65 in 2025 than at any other time in U.S. history, underscoring the urgency of developing the next generation of leaders.”
Avoid Fostering Bad Behavior
Addressing any detrimental behaviors promptly is vital. Ignoring or tolerating negative actions can erode morale and productivity. Never establish different standards for those who excel in other areas. For example, a producer who sells well but treats the team poorly is likely doing more harm than good. Establish clear policies and procedures for dealing with misconduct to maintain a healthy work environment.
Adapting to Individual Personalities and Skill Sets
One of the biggest challenges insurance agencies face is tailoring their high-performance culture to fit their team members' diverse personalities and skills.
“While many firms assert that attracting top talent is their biggest challenge, few invest in developing their existing employees,” adds Kuhen. “Implementing a comprehensive training program that focuses on the ongoing development of current staff, alongside a robust onboarding process for new hires, enables firms to hire for growth and leverage employees’ strengths to enhance the organization.”
He adds that knowing personalities before you hire can be key. “Another opportunity for improvement lies in conducting thorough assessments before hiring. By understanding what motivates candidates and identifying their key skills, firms can better nurture talent and inspire new hires to advance their careers.”
Recognizing and adapting to your team's unique personalities and skill sets will further enrich a culture of high performance, leading to sustained success and growth.
Ready to elevate your agency's performance? Begin by outlining your agency’s goals, determining your detailed plan to achieve that goal, determining who owns each task necessary to reach your goals, and holding yourself accountable to stay on task. If you need assistance, consider a consultant to help you develop and execute your approach. Investing the time and resources to plan for this development can lead to significant long-term improvement for your agency.
