6 ways brokerages are hurt by their own hiring practices
November 13, 2014 3:25 AM
'Troubling' data
"Troubling is the best word to describe the industry's producer hiring data over the past five years," says Reagan's President Kevin Stipe. [Image: Fotolia]
Lack of success
Over the past five years, just 56% of employees who are new to the insurance industry were either successful or on track to becoming successful, according to a recent Reagan Consulting study. [Image source: Reagan Consulting]
An aging industry
The average agency owner is in their 50s, while the average broker is in their "very late 40s," says Reagan Consulting Executive Vice President Tom Doran. [Image: Fotolia]
Firms under hiring
Reagan Consulting found that 55-60% of firms aren't hiring enough new employees. Many should be hiring more new brokers than they anticipate because nearly one out of every two new hires won't be successful, says Reagan Executive Vice President Tom Doran. [Image source: Reagan Consulting]
Discrepancy among firms
New hires at the top 25% of firms are significantly more successful than those at the bottom 25% of firms. Reagan Consulting found that new employees have an 84% success rate to top firms compared to a 22% success rate at bottom firms. [Image source: Reagan Consulting]
Making matters worse
Experienced brokers moving from agency to agency "were by far the largest category of producer hires, representing 55% of the hires over the past five years," Reagan found. [Image: Fotolia]
New blood needed
Over the past five years, a majority of new hires were already in the insurance industry. Of the 35% who came from outside the industry, just 6% were recent college grads, says Tom Doran, executive vice president at Reagan Consulting. [Image source: Reagan Consulting]
Where the data came from
Reagan's study gathered baseline data from 4,641 brokers from 562 firms and conducted a follow-up survey with 112 firms that hired 1,505 new employees over the past five years. [Image: Fotolia]
Also see: Brokers need to change hiring practices
Also see: Brokers need to change hiring practices
