2. Use a through interview process. Enlist multiple interviewers, if possible. Don't allow the candidate to interview you. Interview to both “can do” (Does the candidate have the skill set to do the job?) and “will do” (Is the candidate motivated to do the job?). Seek training in interviewing skills if needed or involve a professional. It's time and money well spent. Don't settle for mediocrity; walk away from any candidate who is not a good fit for your agency. There are plenty of others available given the current economy. Developing a pool of candidates to select from improves the odds of making a successful hire, but be prepared to act quickly if the opportunity to snag that textbook candidate should surface unexpectedly. Recruit “from the market” if you can; hire a former contractor to pursue the contractor market, for example.

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3. Be prepared. We know new producers want to succeed quickly, but starting up in our business is not easy. Newbies need lots of structure in the beginning. Creating this structure takes time and planning, but the payoff can far exceed the effort required. Provide the new producer with a written training curriculum before he or she joins the agency. This document or Excel spreadsheet should identify each training need to be addressed, the source of the training, and the date the training is to be completed. This way, the producer can be held responsible for completing the training program and it is one less detail for the acting sales manager.

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4. Include both technical training and sales training for the producer. But as insurance great John Savage used to say, “Technical skills only account for about 5% of my success. The other 95% is people skills. But you've got to have 100% of the 95%.” That was John's way of saying it's a given that a new producer must have the necessary insurance knowledge to function in the business. But a producer is not paid for what he knows, he's paid for what he does. And this takes sales skills.

The National Underwriter's CLCS self-study program is an excellent basic course in commercial coverages. A.M. Best's underwriting guides are a great resource for new producers. The National Alliance's Dynamics of Selling seminar is hands down the best in the industry for sales training.

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5. Carefully review the compensation plan with new producers before they start. Our experience has been that few new producers understand how they are paid. This can be disastrous. There should be no surprises when the producer fails to qualify for the bonus or falls short of the amount needed to validate salary. Regularly review the compensation plan with the producer. New producers need an initial income adequate to meet their current expenses, and for long enough to give them time to establish their book of business. We've seen good new producers leave agencies because they couldn't pay their bills. A compensation plan that gradually reduces subsidy will encourage failing producers to “self eliminate.”

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6. Provide close supervision. Close supervision is critical to help the new producer establish good work habits. This probably means daily contact at first, even if it's just to meet for coffee each morning. New producers should stay out of the office during business hours. That time is reserved for prospecting and selling. Establish high expectations: 10- to 12-hour days, 5 and a half days per week. Young producers have tremendous energy. Show them how to use it. After all, you have given this producer a wonderful opportunity to build a business with no financial investment. New producers need lots of direction. Don't leave it up to them to figure it out.

7. Provide a sales manager; every new producer needs one. If the agency can't support a full-time sales manager for the new producer, identify someone as acting sales manager for him or herthe new producer. This could be an agency owner, an experienced producer, or even an outside consultant. But someone needs to hold the producer accountable for meeting initial prospecting goals, conduct role playing sales scenarios, and accompany the producer on sales calls. New producers need lots of feedback and positive reinforcement. This may be the most important role of the sales manager.

8. Establish prospecting goals right away, and demand they be met. Typically, producers who are fast out of the gate are also fast in the stretch. If the new producer consistently misses prospecting goals, the writing may already be on the wall: No prospects, no sales.

9. Discourage new producers from practice quoting. Besides wasting valuable time on the part of agency and company personnel, not closing sales is demoralizing to the new producer. Producers, new and experienced, should focus on quoting accounts where they have a legitimate opportunity of closing the sale.

10. Hire slow, fire fast. Becoming a new producer is a life-changing decision, one that affects everyone in his circle of friends and family. Likewise, the decision to bring a new producer on board affects everyone in the agency, and the prospects and clients he or she encounters. A lot is at stake for all parties. The new producer deserves the best chance possible of becoming successful in our business. Effective training, supervision, and agency support are critical. The agency is entitled to the new producer's commitment of time and energy required to begin building a book of business.

If the required prospecting activity is not taking place, sales cannot be forthcoming, so don't wait for the inevitable before cutting the producer loose. It's no favor to the new producer to prolong an inevitable outcome. An unhappy producer can do immeasurable harm to the agency. A bad attitude can spread to other producers and to staff. The agency's reputation may suffer. And the longer it goes, the worse it gets. If you've provided the producer with clearly stated prospecting and sales goals, a comprehensive curriculum with both technical and sales training, regular reviews of the validation plan, and lots of positive feedback, and he still doesn't succeed, it's time to cut your losses and allow the producer to move on.