How Do You Pay Your Employees

RayGroupInsurance

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117
Utah
I've recently switched over to the indy side and I'm looking for the best way to compensate employees. Ideally I'd love to do commission only but don't know if I can find people to work for that. What are some ways you have paid your people that worked well, and some ideas that failed?

FYI, they will be working out of their homes, setting their own schedules.
 
I've recently switched over to the indy side and I'm looking for the best way to compensate employees. Ideally I'd love to do commission only but don't know if I can find people to work for that. What are some ways you have paid your people that worked well, and some ideas that failed?

FYI, they will be working out of their homes, setting their own schedules.


With US currency :) No really if they are going to be working from home and setting their own schedules commission would be the way to go. Think about it how can you verify the amount of work if you pay by the hour. If they balk at commission only they might not be worth it...You might try a small salary plus commission to start to give them a ramp up time and move to commission only.
 
I am an indy in Utah as well, I have been trying the same thing that you are thinking of. I have a stay at home mom that I pay a flat rate to do csr work for me. And I have 1 salesperson who works from home, not producing much, he is commission only. I am still trying to find out how to effectively do this.
 
I'm definiely doing commission only but I was trying to think of incentives to keep them selling and to keep them around longer. Does anyone give a percentage of the renewals to their salespeople?
 
It depends on how you are paid as well. I have found that new agents without an existing income/book, new employees cannot afford to work commission only when the line is a small, monthly fee as it is in something like health insurance. Many employees are willing to give up some on the back end to receive more up front. Perhaps pay for x months up front, where x is less than however many months you would have paid them as earned. For instance, if you would have paid 50% of the total commission for 12 months, payable as earned monthly, maybe instead you pay a one time fee of 50% of the total commission of 6 months up front and payable immediately.

While this does require you to outlay more cash immediately, you save more on the back end. If you have a large existing book or a solid cashflow, this can be an attractive option.
 
Depends on duties/position - CSR's are salary plus production incentive Agents/producers who choose salary get a considerably lower % of commission than the straight commission option.
 
Do you offer them renewals? I would offer them renewals at a smaller percentage and vesting after 5 years or so. If this doesn't motivate them cut them while you can.
 
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