An independent agency can be no better than its producers. Let's consider some ways you can find good candidates, eval-uate their strengths and help them bring in business.

Let's start with a few considerations. The worst time to look for a producer is when you need one. According to industry statistics, up to two-thirds of all new producers fail to last two years in the business. Hiring any producer is costly, but hiring the wrong one can be catastrophic. The odds are not in your favor when the choice is made from a "field of one." Develop a pool of prospects from which the candidate with the greatest potential can be selected.Making a bad hiring decision can be costly. It can result in lost contacts, bad client relations, and poor office morale. The total cost could be four to six times salary.Analyze the agency's needs before you begin. Scrutinize your business plan to identify markets that can help you achieve long-range plans. Then determine if it's possible to recruit to that market; i.e., someone currently employed in the type of business you would like to target. This gives your new producer the advantage of working the market from the "inside."There are additional things to consider before bringing a new producer on board. They include the following:oWho will be responsible for training and managing the new producer? Are there training resources in the agency, or will you need to turn to outside sources? New producers need direction, want to succeed quickly and want to do what's right, but they become discouraged easily. They require daily contact during initial training–probably for the first three to six months.oHow will the new producer be compensated? Each approach to new-producer compensation (straight salary, straight commission, draw against commission, salary plus commission) has advantages and disadvantages. Consider what's most appropriate in each situation.oIs adequate administrative support available? The new producer will need letters mailed, submissions marketed, proposals generated, etc. Your administrative staff probably think they're already maxed out. What will be their reaction to the additional workload triggered by the new producer?oWhat will be your expectations of the new producer? Are you prepared to wait out the learning curve until significant production begins?Like prospecting for new business, searching for a new producer needs to be an ongoing effort. Set aside time on a consistent basis to prospect for new producers. The cumulative effect of just an hour a week can be dramatic.Like prospects for new business, the best producer candidates come from referrals. Meet with one person every week who can refer candidates to you. Cultivate these relationships. It's important that the centers of influence understand the opportunity for new producers in the insurance business. If they're "sold" on the business, they will refer quality candidates to you. Occasionally, a center of influence will become a candidate! Here are some potential centers of influence:oCollege placement offices. Meet with the placement officer and describe the candidate you're looking for. Otherwise, you may be overwhelmed with unqualified job seekers.o Commercial clients. Commercial clients will be flattered you asked for their help and may even refer an employee who is overqualified or has maxed out his or her potential.o Anyone in a leadership role. Look for people who are leaders in their churches, companies, schools or communities.o Insurance carrier human resource managers. Cultivate this relationship and you can add a no-cost "recruiter" to your staff. If carriers are experiencing layoffs or downsizing, they may refer employees to you. Ask for introductions to their contacts at other employers and colleges in the area.oBankers. These people know what's going on in your community before almost anyone else-and are excellent candidates themselves.You can supplement the information you receive from centers of influence with the results of your own efforts. Here are some people and places to check for potential candidates:oBankers. The financial services industry attracts many college grad-uates. They may discover their earnings potential is limited or be unwilling to relocate for that next promotion. They're well-spoken, look professional and have a solid work ethic. Commercial loan officers are good candidates.oFriends and family of the agency staff. Give your staff the opportunity to select their next co-worker. Your staff member will take a personal interest in the success of any friend or family member you hire.oCompany underwriters. Besides being grounded in the technical side of the business, company underwriters know the financial opportunities in sales. Underwriters with less than five years of experience may be the best candidates.oCar rental agents. These energetic young men and woman are used to working with corporate travelers. Moving up in their organizations often requires relocation, which can make your agency an attractive option.oCollege interns. Bringing a college intern into the agency provides an opportunity to observe a potential producer candidate over an extended period–and gives them the opportunity to learn more about your business. This is a definite "win-win."oInsurance majors. Many young people become interested in the insurance industry while they're in college.Not everyone can be a successful salesperson. If you know the characteristics to look for, you can improve your odds of hiring the right person. What you want are people with the following traits:oDisciplined work habits. More salespeople fail because of poor time management and poor self-management than for any other reason. Were they organized in school? Did they work or participate in sports while in college and still maintain a solid grade point average?oIntrinsic motivation. The desire to succeed comes from within. Are your candidates competitive? Have they been generally successful at whatever they've done?oThe ability to build relationships. The ability to network is one of the most important skills a salesperson can have. Have they gravitated toward activities that involve other people, or have they been more independent?oThe ability to close a sale. Have candidates role-play sales presentations with you. Do they ask you to buy, or do they shy away from a closing question?To help evaluate producer candidates, you can use a personality-profiling test. It doesn't matter which test you use. Hire a producer against the recommendation at your own risk. Eliminate candidates who are not a good fit for the business before you put them on the payroll.Learn to interview, or hire a consultant to interview for you. Resum?s tell you what candidates wants you to know. They will give you safe references, and former employers are reluctant to say anything negative. Involve the agency staff in the interviewing process. They may learn things a candidate hasn't shared with you. You may want one of your commercial clients to interview for you as well.Finding new producers is challenging. Be proactive. Establish an ongoing system to locate producer candidates and follow up on the leads. Use your prospecting, sales and management skills to find people with sales potential for your agency.Ken Fields is an assistant vice president with The State Auto Insurance Cos. As co-developer of the nationally recognized PaceSetter new-producer sales development program, Ken has been a personal coach to nearly 500 new property-casualty producers over the past 10 years. He is also on the national faculty for the National Alliance Marketing and Sales James K. Ruble Seminars. For information on The National Alliance for Insurance Education & Research and their Dynamics of Selling program, call (800) 633-2165 or visit www.TheNationalAlliance.com.