Incentivizing Through Compensation
For hiring managers, different options exist for compensating producers and customer service representatives. After all, compensation can consist of way more than a salary; perks like paid time off, benefits, flexibility, bonuses, and incentivized rewards are all key components to a well-considered compensation package. Figuring out compensation can be a major headache for a small business. Additionally, in the insurance industry, which is so frequently commission-based, managers run into difficulty when trying to find the option that will make themselves and their employees the happiest.
Some agencies choose to offer high salaries, with limited or no reward for commissions. Often when choosing this option, employers may also contribute to the IRA’s and health insurance plans of employees. Other employers choose to offer a percentage of the commission received on sales. With this option, employers will often opt out of contributing to employee benefits. Still other hiring managers will offer commission-only plans, with additional bonuses paid out for renewals and a percentage of the firm’s entire revenue stream.
While many argue that commission-based payment plans are the most incentivizing, others choose to think of a salary and the stability it offers as a great solution for developing long-term, trusting relationships with performers - by investing in their development and offering them job stability, they are more likely to feel positive about their working environment and want to give back to the company.
- Small businesses big winner with reinstatement of Health Reimbursement Arrangements
- Insuretech startups Hippo, Lemonade on the attack against agents who sell homeowners coverage in California
- 4 industry trends to watch for in 2017
- Shopping up, enrollment channels shift for Medicare Part D as more consumers rely on brokers
- Why companies can’t get marketing right
- Optimism rebounding among independent P&C agencies; leads to aggressive growth plans in 2017
- Lessons from the U.K.’s bold new retirement initiatives
- Annual review of client needs only makes sense