During the many years that I have placed people in insurance agencies, I have asked them why they were interested in leaving their current positions. Conventional wisdom would make you think that most people leave for more money, and some people do. However, although money is important, it is not the only reason why people leave.

Employees want to be paid a fair wage and have decent benefits for what they do. They also want to be rewarded for doing a good job with an annual raise or bonus. When they believe their pay is fair, they begin to focus on other factors which create job satisfaction. And when they have needs which are not met in their current work environment, they may believe the only way to meet those needs is work elsewhere.

Here are some of the most common reasons why people leave.

1. Financial recognition. Agency management walks a fine line between paying good wages and overpaying or underpaying. Some state associations publish salary surveys, but in general, there is not a lot of good information about salaries, particularly for non-service positions. As a result, some agencies are underpaying their employees. And when market conditions take their toll on agency revenues, some agencies decide to forgo raises, but do not substitute the raise with a cash bonus or other short-term financial recognition. For key employees, financial recognition can take the form of deferred compensation, additional benefits or ownership. An agency that wants to grow and maintain a certain level of success needs to share the wealth with the people who are helping it succeed.
2. Mergers and acquisitions. When a business is sold, employees must deal with a variety of changes, including a new organizational structure and position eliminations, a new compensation plan or reduced benefits, new management and sometimes a new computer system. Employees who hoped for ownership may be disappointed and others may fear their opportunity for advancement is gone. When changes in ownership occur, it is critical to communicate often and listen to the concerns that employees express.
3. The recession and the soft market. Declining revenues have forced agencies to cut costs by implementing new technologies, streamlining procedures and outsourcing work to India and China. As these productivity improvements have occurred, agencies have also reduced staff or not replaced positions when employees leave. As a result, some employees are struggling to keep up with the new demands or new ways of doing things. They may need additional training or management support in order to be successful. When this support is not there, employees may become discouraged and be more interested in leaving.
4. Uninvolved management. In some agencies, principals are busy with their own accounts and the day-to-day demands of running an agency. They are often not aware of the aspirations of the people who work for them. When owners and managers do not conduct annual reviews or have one-on-one meetings with their employees, they can fail to learn about their interest in having more responsibility, pursuing an opportunity or moving into a different position in the agency. In these situations, employees often believe they have no other choice but to leave.
5. Poor morale. Some agencies develop poor morale over time where employees are expected to do their jobs and not expect any management attention. In these agencies, management does not pay attention to employee concerns or provide recognition for their employees. Often management does not believe that employees should have a voice or that their concerns are important. The perception might be that a slow computer system or lack of training is not important. Or management may believe that CSRs do not need to be recognized when a producer retains a big account, or that flex time is not important to help them meet their family demands. In these agencies, some employees will deal with poor morale and others will leave for a more employee-friendly company.
6. Poor sales support. Some agencies focus more on retention than on new business sales. When talented sales people work in these agencies, they want the resources and support to produce additional business. In some situations, the principals are not willing to give their time to work with sales people or help them with lead generation or sales techniques. In other situations, producers want sales materials or other resources to help them manage sales activities and sales success. When management does not focus on new business and growth, these producers can become discouraged and seek other positions.

Any successful agency needs to retain its top people by listening to them, providing resources and financial incentives and solving problems in a timely fashion. Developing a positive work environment where there is opportunity for growth and recognition and where people are appreciated goes a long way toward retaining employees and maintaining continuity.