It might come as a surprise to you, although I can't imagine why, that I am just a bit opinionated. And some things I am just down right passionate about.  One of them is compensation plans for staff. I realize there are many different ways to look at staff compensation; however, only one of them is right.  Staff should always be paid fairly. but always in a way that benefits the agency and the staff. Here are three very specific and measurable guidelines that will help.

First, always base compensation on the amount of new business brought in by the staff; and this includes Producers and CSRs. New business includes prospects, account rounding and new markets.  What it does not include is an entitlement just because of their job title.

Second, base compensation on Personal Performance.  Sometimes we are tempted to base compensation on tenure, personality or just a feeling that we should do something.  But effective compensation rewards results.

Third, base compensation on Agency Profitability; and this is the most important criteria. It doesn't benefit anyone for a Producer to make money at the agency's expense. If the agency makes money, everyone wins.

If you are re-examining your compensation plan and need help, just let us know.  This is one area of agency life that must be done right.