The Five Major Hiring Mistakes Only Hire the

The Five Major Hiring Mistakes Only Hire the Best Community Webinars www. insurancecommunitycenter. com

Insurance Community Center �Presents Monthly Webinars Free to Community Members �Community webinars are archived on the Community homepage under the right hand tab titled: Webinar Archive www. Insurance. Community. University. com 2

George Nordhaus Chairman, Insurance Hiring System Sue Nordhaus President, Insurance Hiring System Today’s Presenters Insurance Hiring Systems www. agenciesonline. biz 888 985 3331 X 210

Cost of a Bad Hire üWasted time in the hiring process üMoney spent on the new hire/termination üLost Business üStaff Alienation Today’s Presenters Insurance Hiring Systems www. agenciesonline. biz 888 985 3331 X 210

The Cost of Employee Turnover �Most hiring and promotion decisions are made in haste—during 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 www. Insurance. Community. University. com 5

The Cost of Employee Turnover �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 www. Insurance. Community. University. com 6

The Cost of Employee Turnover �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. www. Insurance. Community. University. com 7

The Cost of Employee Turnover �The Gallup Organization places the cost of a bad hire as being 3. 2 times the individual’s salary. �Agency management consultants tell us bad hiring decisions that result in turnover cost the employer up to twice the person’s annual salary—for example a salary of $50, 000 but cost of failed hire is up to $100, 000. www. Insurance. Community. University. com 8

The Cost of Employee Turnover Consultant Chris Burand says it costs a minimum of $200, 000 to develop a producer. www. Insurance. Community. University. com 9

How do you…. �Avoid frequent turnover? �Save money, time and aggravation? You learn to be more savvy when hiring your next employee…and stop making…. www. Insurance. Community. University. com 10

What This Course Will Cover 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. ” www. Insurance. Community. University. com 11

Mistake #1—Understanding the Hiring Triangle �Failure to understand the concept of the Hiring Triangle www. Insurance. Community. University. com

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Mistake #2— Not identifying needs �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 www. Insurance. Community. University. com

Understanding who we are looking for. . �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… www. Insurance. Community. University. com 15

Mistake #2— Not identifying needs � 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 www. Insurance. Community. University. com 16

Commercial Lines Manager CSR � � � � 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 www. Insurance. Community. University. com 17

Mistake #3—Getting all the pertinent information �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 questions…so. . �We are not getting all the information we truly need www. Insurance. Community. University. com

What to watch-out for in a résumé �Believe it or not, lying on resumes is on the rise. Over 60% of H. R. professionals say they find inaccuracies on resumes. www. Insurance. Community. University. com 19

What to watch-out for in a resume �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 www. Insurance. Community. University. com 20

What to watch-out for in a resume �There a variety of outside services (Google “Background checks’… 51 million entries) that will help you verify the resume’s authenticity: Comprehensive Background Check Education Verification Criminal, Civil and Sex Offenses www. Insurance. Community. University. com 21

What to watch-out for in a resume 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? www. Insurance. Community. University. com 22

Make sure you have an in-depth employment application www. Insurance. Community. University. com

Get all former employment history www. Insurance. Community. University. com

Three smaller mistakes – wellintentioned, but. . — �Infatuation �Blindly promoting from within �Recommendation from a friend www. Insurance. Community. University. com

Mistake #4—Not conducting a productive interview �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. www. Insurance. Community. University. com 26

Group Interviews �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 www. Insurance. Community. University. com 27

Mistake #4—The Interview Process �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. www. Insurance. Community. University. com 28

Mistake #4—The Interview Process 4. Give me an example when you took the time to share a co-worker’s 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. www. Insurance. Community. University. com 29

Standardizing interview questions and procedures in your agency �Create a list of these and have everyone who is involved in hiring use it…always! www. Insurance. Community. University. com

Types of Question NOT to ask: �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), don’t 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 www. Insurance. Community. University. com 31

Types of Question NOT to ask: �Number of children, child care arrangements, marital status: This is confidential information �Club memberships: Don’t ask, this can reveal religious affiliation or ethnic background �Emergency Information: Wait until the person is hired to ask for this information www. Insurance. Community. University. com 32

Mistake #5: Not measuring against specific job match patterns �Not measuring applicant’s 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. www. Insurance. Community. University. com

Bringing it all together 1. Utilizing the hiring triangle 2. Defining expectations 3. Getting the right information 4. A productive interview 5. Job-matching www. Insurance. Community. University. com

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Every step in the hiring process www. Insurance. Community. University. com 36

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Fitting the performance model www. Insurance. Community. University. com 38

For Information about the Community and University �Laurie Infantino laurie@insurancecommunitycenter. com 714 803 5830 �Marjorie Segale marjorie@insurancecommunitycenter. com 714 206 9583 �For Information about Insurance Hiring System Sue Nordhaus sue@insurancehiringsystem. com 505 6 o 3 5503 www. Insurance. Community. University. com 39

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