Producer compensation may be one of
the biggest factors in agency profitability. It’s
likely to be your largest expense. But more than that,
how you compensate your producers affects producer satisfaction
and effectiveness. An effective compensation program
should help you with the three R’s:
best staff available
Retain these employees through
motivation and incentives
Reward behavior that helps
the agency meet its overall business goals
compensation program should also ensure that each producer
generate more revenue than it
costs to support his or her sales efforts and
the book of business. In other words, each producer
return a profit to the agency.
Viewing each producer
as a “profit center” has
- Evaluating individual producer
performance--not only on the size of their book of
on its ability to generate a sufficient return on your investment--lets
you accurately measure the effectiveness of
your sales force.
- Measuring individual profitability
facilitates individual goal setting for new and experienced
also a great management tool for helping
producers understand the economic drivers of the business as well as their
contribution to agency profits.
all the costs associated with producing business permits you to make more
intelligent business decisions about adding to the
sales force. It also provides
insight into the amount of service staff
required to support a producer’s book of business.
- Reviewing income and expense at the
producer level enables you to know what you can afford
to pay your
producers. It allows you to measure the success of your compensation
plan and make adjustments where necessary.
agencies analyze departmental and producer profitability
is a specialty of
Advisors, Inc. We can
help you identify all the costs associated
with each producer and, if the results
of the analysis
not getting an adequate return on your
investment, we have strategies to help
you make necessary
improve your performance.
To take profitability
to whole new level. For truly meaningful
measures of performance.
standards of excellence...
Fill out our on-line
form or call Transformation Advisors at (530)