Community Webinars www.insurancecommunitycenter.com The Five
Major Hiring Mistakes Only Hire the Best
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www.InsuranceCommunityUniversity.com Presents Monthly Webinars
Free to Community Members Community webinars are archived on the
Community homepage under the right hand tab titled: Webinar Archive
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Todays Presenters Insurance Hiring Systems
www.agenciesonline.biz 888 985 3331 X 210 Sue Nordhaus President,
Insurance Hiring System George Nordhaus Chairman, Insurance Hiring
System
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Cost of a Bad Hire Wasted time in the hiring process Money
spent on the new hire/termination Lost Business Staff Alienation
Todays Presenters Insurance Hiring Systems www.agenciesonline.biz
888 985 3331 X 210
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www.InsuranceCommunityUniversity.com Most hiring and promotion
decisions are made in hasteduring the first 5 minutes of an
interview The economy is having an effect on hiring, and on
turnover, but.. 80% of employee turnover is avoidable 5
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www.InsuranceCommunityUniversity.com Hiring the wrong person
for the wrong job can be a financial disaster. Many employees do
not have all the skills and attributes to do their jobs well Other
vital factors need to be determined before successful hires can be
made 6
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www.InsuranceCommunityUniversity.com Understanding the
financial (and other) effects of establishing more proficient
hiring practices will provide you more reasons to spend time and
effort on this vital growth subject. 7
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www.InsuranceCommunityUniversity.com The Gallup Organization
places the cost of a bad hire as being 3.2 times the individuals
salary. Agency management consultants tell us bad hiring decisions
that result in turnover cost the employer up to twice the persons
annual salaryfor example a salary of $50,000 but cost of failed
hire is up to $100,000. 8
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www.InsuranceCommunityUniversity.com Consultant Chris Burand
says it costs a minimum of $200,000 to develop a producer. 9
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www.InsuranceCommunityUniversity.com Avoid frequent turnover?
Save money, time and aggravation? You learn to be more savvy when
hiring your next employeeand stop making. 10
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www.InsuranceCommunityUniversity.com The five major hiring
mistakes 1. Not identifying needs 2. Not understanding the Hiring
Triangle 3. Not getting ALL the pertinent information 4. Not
conducting a productive interview 5. Not measuring against specific
Job Match Patterns. 11
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www.InsuranceCommunityUniversity.com Failure to understand the
concept of the Hiring Triangle
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www.InsuranceCommunityUniversity.com
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What do we need to accomplish? Exactly what positions are we
trying to fill to accomplish those goals? What do we need in terms
of skill, character and competency? Objective standards they need
to meet What education should they have How about prior work
experience Technology skills
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www.InsuranceCommunityUniversity.com Unless we understand the
functions e want the potential hiree to perform (and agree on them
with the candidate) the long-term probability of a successful hire
is at stake. Here, for instance are the fourteen job functions in
agencies 15
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www.InsuranceCommunityUniversity.com Agency Principal Benefits
Account Manager Benefits Producer Bookkeeper/Financial Claims
Manager Commercial Account Manager Commercial Lines Producer
Information Systems Mangers Marketing Manager Operations Manager
Personal Lines Account Manager Personal Lines Producer Quality
Manager Receptionist 16
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www.InsuranceCommunityUniversity.com Prequalifies new business
Educates clients about coverage, exclusions & exposures Helps
clients make appropriate coverage changes Makes each contact a
marketing opportunity Decides whether to use immediate or delayed
invoicing Provides producers with technical support (to help
clients and agencies) Follows up t ensure timely response Explains
audit procedures to clients and reviews interim reports Provides
binders, certificates, policies, etc. for clients Explains audit
procedures Seeks referrals from client base Summarizes
schedules/proposals Remarkets, contacts clients and follows up with
producers Renews policies Verifies accuracy of direct billed
cancellations Follows agency credit and collection policies
Review's walk in payments 17
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www.InsuranceCommunityUniversity.com Hirers primarily use
resumes only to screen out non-qualifying candidates. But resumes,
if used and understood properly, can play a major part in the
hiring process Employment apps not standardized, have little
probing questionsso.. We are not getting all the information we
truly need
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www.InsuranceCommunityUniversity.com Believe it or not, lying
on resumes is on the rise. Over 60% of H.R. professionals say they
find inaccuracies on resumes. 19
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www.InsuranceCommunityUniversity.com What do applicants lie
about? Education Number of years they have worked on a job
Accomplishments such as taking credit for that they did not do
Reasons for leaving the previous job Salary at previous jobs
References 20
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www.InsuranceCommunityUniversity.com There are a variety of
outside services (Google Background checks51 million entries) that
will help you verify the resumes authenticity: Comprehensive
Background Check Education Verification Criminal, Civil and Sex
Offenses 21
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www.InsuranceCommunityUniversity.com Employment Verification
Reference Check Professional licenses and certification checks It
is very easy to simply put initials after your name. Many
accreditations, such as CIC, require the individual meet the
accreditation requirement on an annual basis. Has the candidate
kept current with the requirement? 22
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www.InsuranceCommunityUniversity.com
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Infatuation Blindly promoting from within Recommendation from a
friend
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www.InsuranceCommunityUniversity.com Three basic tips of
interviewing.. 1. Hold the interview in a quiet, private area and
schedule plenty of time 2. Put the applicant at ease by being
friendly and conversational 3. Let the candidate talk, but control
the question and answer flow You learn a lot more by listening then
talking Profiles International, Waco, TX. 26
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www.InsuranceCommunityUniversity.com Group interviews are
useful because a big part of cultural fit is whether or not the
group actually accepts the person. So bring people from different
parts of your organization to the interview. INC. Magazine 27
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www.InsuranceCommunityUniversity.com Five interview questions
you should ask: 1. If you stayed with your current employer, what
would have been your next move? 2. What makes you stand out from
others in your business? 3. Tell me your greatest accomplishment.
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www.InsuranceCommunityUniversity.com 4. Give me an example when
you took the time to share a co-workers achievement 5. Will you
agree to take our assessment tests so that we can jointly determine
whether you fit the specific job qualifications? NOTE: Make sure
that all people conducting interviews use these same questions and
document their answers in their employment file. 29
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www.InsuranceCommunityUniversity.com Create a list of these and
have everyone who is involved in hiring use italways!
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www.InsuranceCommunityUniversity.com Age or date of birth
Unless you can prove that the applicant needs to be a certain age
to qualify (such as for licensing or driving a car), dont ask
Gender The only place this applies is for rest room attendants
Language Spoken Use caution. You may require effective
communication, but you may not eliminate a candidate due to a
slight accent 31
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www.InsuranceCommunityUniversity.com Number of children, child
care arrangements, marital status: This is confidential information
Club memberships: Dont ask, this can reveal religious affiliation
or ethnic background Emergency Information: Wait until the person
is hired to ask for this information 32
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www.InsuranceCommunityUniversity.com Not measuring applicants
abilities against people successful in that position. Need to know
learning style, verbal and numerical ability. Need to know
behavioral traits such as attitude, social ability and energy
level.
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www.InsuranceCommunityUniversity.com 1. Utilizing the hiring
triangle 2. Defining expectations 3. Getting the right information
4. A productive interview 5. Job-matching
www.InsuranceCommunityUniversity.com Upcoming CE Classes
Voluntary Benefits Ethics Business Income Upcoming Community
Webinars Commercial Property Forms Insuring Winerys 40
