Enlist multiple interviewers. Don't allow the candidate to interview you. Ask 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?) questions. Analyze your own interviewing skills and seek training, or involve a professional if need be.

Improve the odds of making a successful hire by developing a pool of candidates—and walk away from any who are not a good fit for your agency. Be prepared to act quickly if the opportunity to snag that textbook candidate should surface unexpectedly. Increase producer success by recruiting from the field. For example, hire a former contractor to pursue the contractor market.

Be Prepared

Newbies need lots of structure in the months following their hires. Creating this structure takes time and planning, but the payoff far exceeds the effort. 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.

Include Technical Training and Sales Training

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 5%.” 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.

Consider the National Underwriter's CLCS self-study program for training 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.

Review Compensation Plans with New Producers

Few new producers understand how they are paid, and 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 that meets their expenses, and need that income as long as it takes to establish their books of business. A compensation plan that gradually reduces subsidy will encourage failing producers to “self eliminate.”

Provide Close Supervision

Help the new producer establish good work habits with daily contact—even if it's just a cup of 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 and you can show them how to use it. After all, you have given this producer a wonderful opportunity to build a business with no financial investment.

Provide a Sales Manager

If the agency can't support a full-time sales manager for the new producer, identify someone as acting sales manager for the new producer. This could be an agency owner, an experienced producer or even an outside consultant. The manager will hold the producer accountable for meeting prospecting goals, conduct role-playing sales scenarios and accompany the producer on sales calls. New producers need lots of feedback and positive reinforcement.

Immediately Establish Prospecting Goals

Producers who are fast out of the gate are fast in the stretch. If the new producer consistently misses prospecting goals, the writing is on the wall: No prospects, no sales. Demand that prospecting goals are met.

Discourage New Producers from Practice Quoting

Besides wasting valuable time on the part of agency and company personnel, failing to close sales is demoralizing to the new producer. Producers, new and experienced, should focus on quoting accounts where they have a legitimate opportunity of closing sales.

Hire Slow, Fire Fast

Becoming a new producer is a life-changing decision that affects everyone in his or her life. The decision to hire a new producer 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.