Doing More With Less

Steps to Ease the Stress of Customer Service Reps in Today’s Tough Times

When asked to list the major strengths of their agency, most owners usually include the agency’s quality of service to the client. In the typical agency, the customer service representative is the foundation of good service. Logically, one can say that the CSR is therefore a major part of the strength of an agency.

CSRs are a critical component to the retention of accounts because of their regular personal contact with clients. They must provide consistent, quality support to keep the business on the books. If accounts are lost, revenue drops and the value of the agency diminishes. In these tough economic times, client contact is what is needed to retain accounts.

The economic downturn has forced many agencies to let go some of their staff, due to lower commission income. The workloads have most likely not changed, unless some accounts have been lost. Some agencies have actually cut some of the compensation of managers and CSRs to make payroll due to the decline in revenues. So each CSR/account manager now has more work and most often the same or less pay.

Owners are telling staff that if they don’t agree to the compensation cuts that there may need to be more layoffs, which invokes fear in those left at the agency.

Yes, these are difficult times. Are there better ways to help employees handle the stress and fear that is left in those that remain to handle the increased workloads? Here are some suggestions:

1. Tell those that remain that their jobs are secure, if they are.
2. Let employees know that when times are better, their compensation levels will be restored and possibly a bonus will be given for the extra efforts they have been asked to give.
3. Managers need to check in on the customer service staff on a regular basis to see how they are doing and coping.
4. Suggest that along with the cut in pay, an occasional extra day off will be given, maybe once or twice a month, as a thank you from management.
5. Look into allowing CSRs to work from home, which often provides them with the needed flexibility to handle some personal business during working hours, such as taking care of their children.
6. Match CSRs to the responsibilities that are expected; see the following.

Define the Role

Write a job description spelling out the CSR’s tasks and responsibilities and make sure both parties agree to it.

The basic job of the CSR boils down to the collection, processing and distribution of information. Therefore, the collection of information tends to be the most significant skill. The CSR needs to know what information to gather and how to ask for it. Patience, determination and diplomacy are necessary whether probing the client for pertinent information to complete a claim form, getting a quotation for coverage or quizzing a producer when filling out an application.

The CSR needs to be a “people” person. Good social skills and the ability to act as a go-between for the different parties — clients, producers, underwriters and agency owners — are a must. A CSR needs to be able to handle complaints and negotiate a favorable outcome. A qualified CSR has the ability to say no, can take criticism from others and provides constructive input to resolve problems.

The typical CSR spends about half of his or her time talking to clients or insurance company personnel gathering and distributing information, and problem solving. The balance of time is spent on paperwork and computer input. Communication is a CSR’s most important skill because of this emphasis on listening and talking to clients and insurers. Look for it when hiring. It is a natural skill that the individual must already possess. Technical knowledge can be easily taught later.

Define Responsibilities

The responsibilities of a CSR vary based on the culture of the agency. Some agencies expect the producer to do a lot of the service work and the CSR to support the producer. On the other end of the spectrum, some agencies require CSRs to handle their own book of business with little input from the producer after the account is written. Some CSRs may be expected to sell or do some other duty as well, such as accounting or management of computers.

It is important to match the temperament of the CSR to the agency’s culture. Don’t hire a “go-getter fireball” when producers like to control the account service. A meek CSR will fail in an agency that treats the CSR as an account executive.

The most frustrating aspect of the job for most CSRs is dealing with difficult people. The inability to effectively communicate with someone prevents the CSR from properly doing the job.

When a CSR can’t get along with a person, management needs to act quickly and decisively. If the problem is with a client, the reassignment of that account to another CSR could solve the problem. A stickier problem is when that difficult person is another employee, such as a producer he or she works with.

Management should not jump to any quick conclusions without uncovering the facts. Reassigning jobs to minimize contact between the two parties may help the situation. However, if problems continue and the main instigator is determined, that person should be dealt with, even if he or she is a top producer. Failure of management to back up the staff will result in poor morale and even mutiny.

A CSR may feel that one producer dumps too much work on his or her desk, work that the producer or someone else should handle. If a rift erupts between the service staff and the sales staff, it can bring down the agency. The parties need to be a team to get the job done properly for the client.

The agency needs to make sure that specific ground rules are established and fairly enforced. Management should outline the role of the CSR versus the producer.

Another very common reason why people leave an agency is that management never clearly communicated what it expected from the employee. When responsibilities and authority are not specifically discussed, then miscommunication and hurt feelings can occur.

Define Expectations

A CSR needs to know what size book management expects him or her to handle. Management, on the other hand, needs to offer proper training and support to allow the CSR to get the productivity level expected.

Size of book handled by the CSR varies based on the size of account handled. In personal lines, most average CSRs handle between $75,000 and $120,000 in commission. High-performing CSRs are in the $105,000 to $180,000 range, again based on size of account. In commercial lines, $165,000 to $250,000 in commission handled per CSR is more common for the average CSR, once again with size of account driving the standards. For the high-performing CSR, commissions handled are in the $250,000 to $350,000 range.

These make a good comparison for the firm. However, for both CSR and producer productivity, the commissions and number of accounts handled by the best people working in the agency should be the benchmark. Remember again that with the lower rates due to the continued soft market and economic conditions, commissions may have declined in the past year or so, with the number of accounts still about the same. It may look like the CSRs are not holding their own, based on the lower commissions. However, keep in mind that it is likely renewals will go up, beginning in the fall.

Provide Support

Very often, CSRs struggle with time management. Sometimes, something as simple as an additional fax machine or better copiers can improve everyone’s productivity. With the exception of small agencies, CSRs should have technical and clerical support. A good ratio to follow is one assistant for three CSRs. Delegation is a great antidote for the time management disease. Work should be delegated to the least costly, qualified employee whenever possible. This is known as staff stratification and positively affects both productivity and profitability.

Management can also assist employees in balancing their business and personal life. Flextime is a good start. Giving an employee one day off per month, for appointments, a three day weekend, etc., is also recommended. Some agencies may even pay for daycare or provide the services of a financial planning expert for the employees to use. Sometimes a health club membership or in-house massages are provided to reduce stress and help keep the employees fit. Be creative.

A Final Analysis

The role of the CSR must never be underestimated — just ask any owner who just lost a great CSR. Take the time to find the person who possesses that perfect blend of diverse skills and knowledge. Helping CSRs through these stressful times by offering them reassurances, support to get their work done, restored or additional compensation, and other ideas in this article will benefit everyone in the agency. Happy, appreciated CSRs will also help retain the agency’s clients.

Topics Agencies