The most important reason is that traditional methods of compensation will always remain an expense, with limited ways to measure profitability. As a result, staff is unmotivated because they lack a way to achieve higher income levels. Management must wait until the end of the year to determine if they have received sufficient benefits from their compensation plan.

The lack of increased income potential and objective, professional work environment will limits the quality of top performers willing to join your organization.

Symphony is a “staff driven” system. Once the compensation plan is implemented, Staff is responsible for tracking their achievements. Management’s primary responsibility is to monitor, coach and lead each individual to success.

Providing the agency management system has the option to assign unique activity codes to activities/logs then Symphony will import\ data from either an Excel or csv file downloaded from the agency management system.

The most significant and noticeable impact of Performance Based Compensation on the hiring process is the ability to identify and attract top performers and weed out prospective hires who are not a good fit for how you do business.

On their own, bonuses typically are not successful for two reasons:

    • Bonuses empower Staff to choose whether or not they are willing to achieve the goals in order to get the bonus. This means Staff determines how your agency does business.
    • Bonuses will at best produce temporary compliance; but never long term change.

Bonuses are most helpful when offered for 30 to 90 days for the purpose of focusing Staff’s attention on desired behaviours.  Bonuses may also be taken based on contingencies and rely on each Staff’s Performance Evaluation Score.

Staff’s response to change is directly related to how change is presented to them. When individuals clearly understand how change benefits their lives, resistance is significantly reduced. Staff who resist all change, even beneficial change, most often view income as an entitlement and simply do not responsibility for their actions to impact their income.

To significantly reduce pushback here is how we recommend Performance Based Compensation is introduced to staff:

“I want to apologize to our staff. As owner or management, I have failed to provide each of you with two critical tools for growing personally and professionally in your job. First, we have asked each of you to hit a bulls-eye without giving you a target. In other words, we have not provided you with a clear path to pursuing and recognizing your success as an insurance professional.

Second, the current economy has meant that we have been unable to offer each of you the opportunity for increased income as we grow. Very simply, the shaky economy has meant we could not afford to take risks because we have no idea what the economy will do next.

In order to correct our oversight, we made a commitment to look for resources that allow us to provide you with a way to pursue your success as well as look forward to increased income. We discovered a performance based approach to compensation and we are very excited to announce that we will begin the transition process soon.”

This is a proven approach to change which the majority of staff will welcome and support.

The system is specifically designed for any type of staff. Every job involves repeatable behaviours that are foundational to success in the position.
It is usually an easy adjustment assigning behaviours such as Referrals, Annual Reviews, Average Policy Count, etc. to licensed staff who interact with your customers. Performance Based Compensation allows you to assign these behaviours as KPIs (Key Performance Indicators) which can be objectively measured and rewarded.

However, positions such as Receptionist, Accounting and Processors sometimes require more thought.  Here are some examples:

  • Receptionist
    • Collecting email addresses
    • Scheduling annual reviews for licensed staff
    • Attendance
    • Peer Evaluation
    • Compliance with standards for appearance, following procedures and documenting phone calls.
  • Accounting
    • Attendance
    • Compliance with standards for how accounting actions are handled.
    • Standards for keeping accounts receivable up to date
    • Peer Evaluation
  • Processor
    • Attendance
    • Peer Evaluation
    • Compliance with standards for documenting customer service activities, processing in a timely manner and accuracy in processing customer service requests

“Manage processes.  Lead people.” is a one hour webinar explaining our unique approach to leadership The objective is to release owners from the job of getting staff to do their job and empower staff ti take personal responsibility for their success.”

Click Here To Watch