csr bonus/commissions?

[indiana_country_girl]

I was just wondering that the "norm" was for paying staff bonus/commissions. Every agent I have worked for has paid this, however I moved from one state to another and took a position with the same company, but new agent and when I asked about writing bonuses or commissions, the response was "oh no, I don't pay that"

My question is, which is common practice among agents... to pay or not to pay?

Thanks!

[Big Dog]

Each state/region/area seems to have a different "standard". The issue comes down to how much does the agency/owner value their support staff.

I work for a large multinational broker in their service center. They don't pay the service center employees bonuses (let alone commission). However, the producers and account managers get bonuses based on their production and overall profitability. FWIW this has had a negative effect on the moral of the service center employees (employee retention is a big problem).

That would be one question amonst many that I would ask in the initial interview. As noted above, it will give you a good indicator as to how they view their support staff.

FWIW, most places I worked at before (all in Kalifornia) did pay some type of bonus.

[indiana_country_girl]

I'm a producer, the office staffs the agent, myself and a secretary. I discussed commissions with him before accepting the position. Then I was told after that he's decided against it, but would offer some kind of bonus throughout the year. I can rack up some commissions and I feel mislead, but wanted to know if this was a normal way and if I have just been spoiled at my previous jobs.

Thanks!

Indiana_Country_Girl

[CATHIEA]

Kind of depends on what you're being paid. I pay my csr/front office person a modest salary ($20,000 range) plus provide medical & dental coverage. She also has 12 days paid time off (not including holidays) and commission. The commission is only 10% but it's motivation for her to sell. However, if I was paying her a higher salary - I would have to remove the commission because it wouldn't be cost effective for the agency. After all, it is part of the job description to write new business for a salaried csr - so you might want to weigh out whether you're being paid more than those positions that offered commission.

[indiana_country_girl]

Kind of depends on what you're being paid. I pay my csr/front office person a modest salary ($20,000 range) plus provide medical & dental coverage. She also has 12 days paid time off (not including holidays) and commission. The commission is only 10% but it's motivation for her to sell. However, if I was paying her a higher salary - I would have to remove the commission because it wouldn't be cost effective for the agency. After all, it is part of the job description to write new business for a salaried csr - so you might want to weigh out whether you're being paid more than those positions that offered commission.

Being paid around $25k per year, hold P & C and L & H, my previous jobs paid the same plus commission, usually 2 months premium, on what I prospected, not everything that I wrote, but what I prospected myself. Other benefits are 10 days a year, no health or dental though. I don't believe asking for commissions is out of the ? even being paid $25k per year. Even though I love my job, it makes it even better when I have a hand in how much I can make and if I am given an honest incentive to produce and prospect, it only helps all the way around. I was getting paid commission once on a policy and that's it, the agent gets the commission and renewals.... my only point is the drive is lost when there isn't commission. I just wondered if this was out of the norm or not.
Thanks

[rhare]

I hope the poor sec. making only $20k is getting very good health care package. If he/she is licensed by the State, he/she is MORE than a receptionist/secretary and deserves more than $20k. Yikes. I say give her more responsibility, increase her pay AND offer her flat bucks for obtaining Home or Auto ex dates from customer you don't write all lines.

Anyway, in Western NY (WNY) it is common, but not all, for agents to pay any licensed rep in the office a flat fee or commission (first year only) for anything they wrote or add to existing; it has to be something the csr prospected to write (i.e. add Inland Marine, get the rec veh policy, add something substantial, etc.). Of course PRoducers are on their own plan. SOme 50% comm first year, then much less after that.

I've been in the business since 1984. I would NOT accept a job without some kind of incentive offer - every little bit helps with the motivation and effort.

[MrBill]

Wow I could quit and go to work for some of you guys! The real problem starts with what commission level is being paid to start with, also the cost of living for that area etc. What is a "fair wage" in one area may not be in another. In our area CSR's start at $8.50 Hour with no benefits.

[indiana_country_girl]

Wow I could quit and go to work for some of you guys! The real problem starts with what commission level is being paid to start with, also the cost of living for that area etc. What is a "fair wage" in one area may not be in another. In our area CSR's start at $8.50 Hour with no benefits.

Even if they are licensed that's what they start at?

[MrBill]

[quote="indiana_country_girl"][quote="MrBill"]Wow I could quit and go to work for some of you guys! The real problem starts with what commission level is being paid to start with, also the cost of living for that area etc. What is a "fair wage" in one area may not be in another. In our area CSR's start at $8.50 Hour with no benefits.[/quote]

Even if they are licensed that's what they start at?[/quote]
Licensed is a different story. Benefits have to be factored in also. What ever your region will determine the pay. Same as the terr. you rate in.

[CATHIEA]

Yes my CSR/front office person is licensed - which I paid for - and the health care package is worth about $350. per month. Cost of living here in AZ is much lower than other areas and the pay reflects it - average wage for a licensed (can't have them unlicensed) CSR is around $10. per hour. More experience with commercial and larger agency they can get around $35,000 per yr. The majority of agencies are small because the large ones gobbled up most of the medium size agencies (5 mil + avg size) a few years ago. Competition is fierce for those higher paying jobs and the pressure is high so most of the CSRs are just plain happy to work for a lower wage with better working conditions. Health care is a true bonus - not something most agencies provide.
However, back to your question about the commission. If the agency owner is not concentrating on growth, they might not feel they need to incent you to produce - or if they pay for all the advertising and you are there to just write policies when the phone rings. You indicated you're a producer - are you going out cold calling or are you an inside person? My producers are paid straight commission - no benefits.

[Porter]

Mr. Bill,

What area is your agency in India? If I was a CSR in your area I would get the heck out of there quick.

indiana_country_girl,

I think MR. Bill is your boss. If you don't like the situation you are in and feel misled by the agent start interviewing at some other agencies. If you are worth more you will find someone that is willing to pay you more.

Porter

[jctwindad]

I am in East Tennessee, city of 60,000. CSR compensation (not including bonus) averages $30,000 plus benefits. I also pay 20% of first year commission on new policies written, however I pay 35% commission on additional (account rounded) policies. I have no turnover, and all of my CSRs have CISR designation. Several also have AAI and/or CIC designations (I pay 100% of education expenses).

You get what you pay for!!!

[indiana_country_girl]

Thanks for all the replies! I will be looking for another agency to work for. I paid for my own licensing, I came to this office already licensed and already having knowledge of the system since I worked for the same company in another state, only minor differences. I do cold calling daily, prospecting, making review appointments, etc. I enjoy challenging myself to see if I can beat my own goals. I don't get healthcare here, which I know is expensive, I asked for it and it was offered, then fell through the cracks, like my commissions. I just feel that I should be getting what I agreed to come to work for. Thanks for letting me vent and giving me your opinions. I just can't quit though, I have to have another job before I can leave here, I have a son to think about. Thanks everyone! I know I'm worth $25k plus commissions, if I wasn't I wouldn't have been at my last agent for 5 years. I think I just got sucked into empty promises here, which happens in life.

[mhutch69]

Guys and gals, every market is different. In CA. the average "licensed" CSR is probably paid $40,000-$50,000 plus, [u][b]not[/b][/u] including commissions.
Every agency set-up is different. As Cathie states, it is what the market will bear...

I have one of the "mid" sized agencies with Sales/CSR's combined to reduce payroll and employee count. It only works with the correct individuals. My newest agent has been with me over 5 years. I pay major medical 100%, 401k, and holidays. I do not provide paid vacation as I do not have the personnel. Everyone gets timeoff, so do not feel too sorry for them. I pay an average salary approaching $30k plus an incentive on auto apps, fully earned via my in-house motor club plans. The incentive ranges from $10 - $30 per app. depending upon the motor club sold. (it is controlled at the time of quote)

AZ. licensing is paid for by the agency. CA. and NV. is a long and expensive licensing process. AZ. is not.

As all of the agency owners do, I DO pay for E & O for the agency, advertising, office supplies, T-1 lines for phone and internet, provide all competitive markets available and make sure the air conditioning is on in the summer.

If an agent wants commission on top of the other benefits I provide, I tell them we can go straight commission? That typically slows them down. I prefer to avoid the monthly calculations of paying commissions and chasing chargebacks due to limited agency management systems at this time. I know it can be done simply, but upon departure, the agency eats all the chargebacks and normally benefits minimally from the remaining book. As well, without the proper producer agreement in place, the debate begins as to who owns the book. I pay the bills, I own the book.

Just my way. Everyone needs to be happy.

Hutch

[rhare]

You DO GET WHAT YOU PAY FOR and unfortunately, many women CSRs are taken advantage of by small agencies. Move on girl! Go to interviews, sell your self motivation etc. PLEASE DON'T ANYONE take any of this as a criticism, this is my opinion and what I have seen since out of college in 1983. It is still a man's world in the isnuracne business., It stinks. In past, I worked for agents who paid for Continuing Ed and broker license. But for designations, CPCU, AAI, (which I have) and I have one more CIC to complete this Spring, some agents limit the reimbursement; but my current emloyer (since 2001) pays 100%. I earned my CPCU (1991-1996) on my own, at my cost for about 75% of it. I changed agencies with 2 CPCUs left, and that agent paid for them and gave me a $500 check once completed. I started there in 1996 and was making more than any of the piddling salaries discussed herein. I live in an area that is very LOW cost of living, so I don't get how the respect for a CSR has not been realized by so many Agents. It's sad. If you have the mind set that "She is just a girl, a secretary, a clerk, etc." - then you're ripping off the employee and she will leave...Sorry, but I've been there, done that. Took many years of busting my ass for ungrateful chauvanist men to realize I was being handled as a kid. - THERE ARE AGENTS who will pay educated CSRs what they are worth, and then some! I have a four year degree in business and I'll be damned if I'm going to work for pennies or nickels or dimes. I'm worth every dollar, and so are most of the ladies I work with. Young ladies hired heere START at $25,000 with NO insurance EXPERIENCE. SELL YOURSELF, you will find the right agent eventually. WHere I work now - all education and licensing is paid for, we have retirement plan paid by agency, 401k, health & dental which is partial ee pay (I don't need it since husband has coverage thru his employer plan), we start with 2 weeks off and 8 days personal time and 11 holidays. 3 wks vacation at 5 yrs. We work 40 hrs/wk. I usually put in 45-50 (no OT applies, salaried). And there are many more agents in this area who do match most of what I have now. But there are many who don't. YOU HAVE TO GO OUT AND INTERVIEW AND ASK ASK ASK !!!! GOOD LUCK!