Pennsylvania Primary Agent - March 2019

MARCH 2019 | PENNSYLVANIA

BRAD ROSENKILDE

ON AGENCY & INDUSTRY PERPETUATION

Exclusive Member Magazine

TIPS FOR EMPLOYEE GROWTH CREATING A CULTURE OF EXCELLENCE

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IN THIS

8 ON THE COVER: Q&A WITH BRAD ROSENKILDE Brad Rosenkilde talks family business, perpetuation planning, Millennials, and more.

14 TIPS FOR EMPLOYEE GROWTH

Score strategies to meet your agency goals through employee development.

20 CREATE YOUR CULTURE OF EXCELLENCE

For your business to thrive, your employees need to be engaged. Learn best practices on how to strengthen your team.

IN EVERY ISSUE 2 3 4 6 10 12 26 28 28

Chair of the Board’s Message Claire-ification Preventing Errors & Omissions Coverage Corner News & Notes IA&B Partners Pics & Posts Education Classified Ads

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About IA&B IA&B is the premier resource and champion for independent insurance agents in Pennsylvania, Maryland, and Delaware.

Periodical postage paid at Mechanicsburg, Pa. and at additional mailing offices.

Postmaster: Send address changes to Insurance Agents & Brokers, 5050 Ritter Road, Mechanicsburg, PA 17055.

Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2019-3, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

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Copyright 2019. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and/or other professional advisors concerning specific matters before making any decisions. We disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in Primary Agent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of IA&B. Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&B endorsement of the products and/or services.

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CHAIR OF THE BOARD’S MESSAGE

BOARD OF DIRECTORS INSURANCE AGENTS & BROKERS 5050 Ritter Road | Mechanicsburg, PA 17055 800-998-9644 | IABforME.com

OFFICERS

Chair of the Board

John B. Hollister

PERPETUATION PERSPECTIVES

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erpetuation – at an industry level and, for many of us, at an agency level – has been weighing on us for years. We focus on each new generation’s “otherness” and wonder how to attract, let alone manage and retain, Millennials and now Generation Z. I hate to break it to you, but … our predecessors undoubtedly fretted over our differences, too – everything from our work ethic and spending habits, to our tastes in music (The Band, Allman Brothers, Grateful Dead, Bob Dylan, the list goes on) and clothing. And while I may be biased, I think we turned out just fine (according to my mom).

It’s all about perspective – and harnessing each generation’s strengths.

Today’s young professionals are more than just tech savvy. They’re “digital natives.” Who better to advance our industry’s technology adoption?

They’re also representative of the very clients whose market share we fear that independent agents could lose. So who better to sell to Millennials and Generation Z than their cohorts?

Finally, I’ll share that, as a board member, I’ve had the opportunity to attend the last two IA&B Futures Conferences for young insurance professionals.

And let me tell you: These people are movers and shakers. They’re extremely bright, and they think outside the box. We – as agency principals – need to begin discerning how to get them involved in agency perpetuation. If not, these young professionals will find someone else who will.

Milford, PA

Vice Chair of the Board

Craig S. Mader Crofton, MD

MEMBERS

Emory Stephen Burnett, CIC, ARM Wilmington, DE

Richard F. Corroon, CPCU Wilmington, DE

Michael P. Ertel Sr.+ Columbia, MD

Len Gieseler, LUTCF Pottstown, PA

G. Greg Gunn, CIC* Lemoyne, PA

Bryan C. Hanes, JD Hagerstown, MD

Lisa A. Leach Goth, CIC New Bethlehem, PA

Shannon Lipniskis Indiana, PA

Elizabeth H. Martin, CIC Millersville, PA

Mark J. Monroe

West Chester, PA

Richard M. Rankin, CIC Lancaster, PA

D. Bradley Rosenkilde Jr. Hunt Valley, MD

Tara S. Silfies, CPCU Bethlehem, PA

Robert L. Smyrl Jr., CIC Hatfield, PA

Best,

Glenn R. Strachan

Ft. Washington, Md

Lawrence A. Wilson, CIC, CPIA, CPCU, ARM** Newark, DE

J. Marshall Wolff, CIC, CPCU

John Hollister Chair of the Board

Easton, PA

* Pa. IIABA National Director ** Del. IIABA National Director + Md. PIA National Director

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MARCH 2019

Claire-ification IA&B Vice President - Advocacy Claire Pantaloni, CIC, CISR provided this month’s answer.

QUESTION: A contractor client is thinking about converting a couple of employees to independent contractors. Could I get in trouble if I proceed with the workers’ comp policy?

ANSWER: Yes. It is never a good idea to attempt to cut costs by misclassifying employees as independent contractors. In addition, our three states have enacted laws that: • Define specific criteria an individual must meet in order to be classified as an independent contractor, and • Increase the penalties for misclassification.

Delaware’s Workplace Fraud Act of 2009 establishes definitions of an employer-employee relationship, defines an independent contractor and an exempt person, and spells out civil penalties for intentional infractions.

The law applies to the construction and landscaping services industry.

Additionally, a person who “knowingly conspires with, aids and abets, assists, advises, or facilitates” an employer to misclassify employees is subject to a civil penalty of up to $20,000. There is no safe harbor provision for insurance producers.

Maryland’s Workplace Fraud Act of 2009 distinguishes between intentional and unintentional misclassification, but it provides civil penalties for both.

The Maryland law also focuses on construction and landscaping services.

There also, a person who “assists, advises, or otherwise facilitates” an employer to misclassify employees is subject to a civil penalty of up to $20,000. Again, there is no exemption for insurance producers.

Pennsylvania’s Construction Workplace Misclassification Act of 2010 spells out criteria to determine if an individual truly is an independent contractor, as well as the civil and criminal penalties for intentional violations. Not surprisingly, the construction industry is again the focus of this law. Those who face penalties include not only employers, but also their officers and agents, and those who knowingly contract with another employer violating this law. There is no safe harbor provision for producers under this law either.

WHY (KNOWING) LESS IS MORE This is an interesting situation where it is better for your clients to know more, and for you to know less! If your clients start confiding in you on improper classification of employees as independent contractors, not only do they risk increased penalties, but so do you. Remember that none of the three state laws have any safe harbor provisions for producers who know of the misclassification and go along with it.

In addition, your clients also could be charged a hefty audit premium when their carrier revisits their criteria in light of the new law.

Bottom line, you can give a heads-up to your affected clients that these laws are now in place, but do not get involved in the classification process, or you could end up on the wrong end of the violation.

To read more on this topic and review specific definitions and criteria, visit IABforME.com/coverage_issues/WC.

Ask our experts!

Have a question? Rely on our team to find the answer.

Contact Claire: 800-998-9644, ext. 604 ClaireP@IABforME.com IABforME.com

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PREVENTING ERRORS & OMISSIONS

IS YOUR AGENCY ‘GOOD’ OR ‘LUCKY’ REGARDING E&O?

By Curt Pearsall, CPCU, AIAF, CPIA

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here are many agencies that have not experienced an errors and omissions (E&O) claim in the last 10 years. Does that mean they are a good agency from an E&O standpoint? It certainly speaks to the fact that they must be doing some things well.

When they look at the allegations being made against them by their client, typically the agency will discover that the claim could have been avoided or, at a minimum, the agency could have built a more solid defense to increase their chances of prevailing on the E&O matter.

Unfortunately, many of those agencies seem to feel that they are immune and that an E&O claim will never happen to them. And then one day, a lawyer shows up at their office and presents them with a summons and complaint. That is when they possibly discover that they were not as good as they thought.

When it comes to E&O, relying on luck is definitely not suggested. It is best to have some element of an E&O loss prevention program in place. Some agencies may feel that developing a strong E&O prevention program is an overwhelming task, so they do nothing.

A better approach would be to start by MARCH 2019

designing and implementing a plan.

Then, every year look to strengthen the program by adding new loss prevention measure or building upon the ones already in place.

Some of the building blocks for a strong program would include: Documentation of the conversations with the clients. Not only should documentation be in the agency system, but the essence of the discussions should be memorialized in a document back to the client.

Some agencies may feel that developing a strong E&O prevention program is an overwhelming task, so they do nothing.

— Curt Pearsall Exposure analysis checklists/ questionnaires. Since exposures change, a review of the exposures should be done when the risk first becomes a client and then each year (at a minimum every other year) through the use of a questionnaire that is sent out to the clients or done in a face-to-face environment.

Solid marketing efforts to ensure the applications reflect the current exposures and that all carrier and wholesaler proposals are reviewed to compare the coverage requested with the coverages proposed.

Adherence to securing written confirmation of purchase decisions and mid-term changes.

Policy checking. The policies being issued by your carriers and wholesalers are not always perfect. They should be checked to compare the policy against the coverages requested by the client.

A solid commitment to education and training. Too often, E&O claims develop as a result of incorrect information being provided to the client. Clients are relying on your

knowledge and expertise. Ensure that the appropriate staff members are getting the training necessary.

By adhering to solid E&O practices, you are increasing your chances of success. You may be able to achieve E&O success and never have to read a summons and complaint. You are certainly increasing your chance of E&O success by being “good,” and “good” just doesn’t happen. It takes hard work and personal commitment. There is no doubt that you will enjoy many benefits that a strong program brings.

Curt Pearsall, CPCU, AIAF, CPIA, wrote this article for Utica National Insurance Group. IA&B is the exclusive agent for the Utica E&O program in Delaware, Maryland, and Pennsylvania.

The material contained in this article is for informational purposes only and is not for purposes of providing legal advice.

You should contact your attorney to obtain advice with respect to any particular issue or problem.

COVERAGE CHECKLISTS STAY INFORMED of your customers’ changing exposures by using coverage checklists, as recommended by author Curt Pearsall.

The Virtual Risk Consultant is a comprehensive sales and service resource that helps you properly document your customers’ files with a comprehensive checklist of the coverages offered, accepted, and rejected.

Receive discount pricing on the Virtual Risk Consultant through our affiliation with the Big “I”. Visit our website, or contact our Advocacy team, to learn more.

IABforME.com/discounted_services/VRC

Claire Pantaloni, CIC, CISR Vice President – Advocacy 800-998-9644, ext. 604 ClaireP@IABforME.com

Don Bankus Legal & Corporate Affairs Director 800-998-9644, ext. 603 DonB@IABforME.com

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COVERAGE CORNER

A TRUCK AND COSTCO A Producer’s Role in Supply-Chain Planning

By Kevin C. Amrhein, CIC Where do you get your product?

“A truck comes every week.”

What if the truck doesn’t show up?

“Costco.”

In my food and beverage insurance class, I discuss supply-chain management.

Specifically, how every business, big or small, has a place in a chain of suppliers and buyers. It doesn’t take long to reach the conclusion that food and beverage insureds, like most commercial insureds, don’t plan for supply-chain interruptions.

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And as much as I love Costco, paying retail prices for goods (like food and beverages) that an insured must sell for a profit is not very … um … profitable.

Everyone knows that a supply-chain interruption caused by anything – hurricane, fire, cyber-attack, etc. – can easily and quickly kill an unprepared business.

So why the lack of planning?

Because business owners are really good at what they do: serving food, selling electronics, building houses, etc. And

MARCH 2019

they really stink at what we do: predicting and planning for disaster.

What role should a P&C insurance agent play in a commercial insured’s supply-chain planning?

Yes, there may be opportunities to sell insurance products that can help.

Truthfully, outside of what’s included in a BOP or available by endorsement to a Business Interruption policy, the insurance products in this space are often complicated, non-standard, and/or expensive.

But there’s more an agent can do.

Insurance is only one piece of supplychain planning. It’s my belief that a P&C producer is in prime position to play a pivotal part in the planning process.

(Alliteration is my jam. Go ahead, try me.)

What follows is not the equivalent of a comprehensive (and expensive) analysis – the type available through specialized counsel – of an insured’s supply-chain, its resiliency, and contingencies. Rather, the purpose of these three suggestions is for you – the agent – to help get the insured’s wheels turning and kickstart their planning.

No one else is talking to your insureds about this stuff. This exercise will be frustrating and rewarding. It could save the life of the insured’s business.

1. START WITH TWO IMPORTANT LISTS The first list will include all of the insured’s primary suppliers/major buyers and where they’re located. Next to each entry, list the likely exposures that could cause a supplychain interruption based on the location (hurricane, earthquake, etc.).

Don’t limit thinking to exposures caused by natural events. For many businesses, supply-chain interruptions could occur due to cyberattack, prolonged loss of internet, etc. Write ‘em down.

to engage quickly. However, the backup supplier’s warehouse was only a few hundred yards away from the primary supplier’s warehouse and was also damaged by the hurricane. Sheesh!

Regarding the entries on the second list: How quickly could the insured engage the alternative and at what additional cost?

2. REVIEW INSURABILITY Are any of the exposures in the first list covered by the insured’s Business Interruption insurance program?

Are any of the exposures that are not currently covered insurable? Some policy actions – such as adding/endorsing additional Causes of Loss or adding/ increasing Dependent Properties coverage – may be within the scope of your current program.

Other exposures – like a loss occurring outside of the coverage territory, or caused by flood, earthquake, or governmental action – are difficult to insure. I’m fond of saying, “There’s very little insurance companies won’t do for more money,” and you likely could find a broker somewhere with access to a policy to address just about anything.

Most insureds won’t bite on such niche insurance products, but it’s good for them to know that you’re willing to exhaust your resources to help them.

The second list will include alternative suppliers/major buyers to those in the first list and where they’re located. If it’s likely an alternative is exposed to the same loss as the primary, the insured may consider exploring a different option.

3. REVIEW RISK MANAGEMENT

For example, an agent recently told me his insured owned a few restaurants around New York City. The warehouse of their primary supplier suffered damage from Hurricane Sandy. Unlike most insureds, this one had a backup plan with another supplier which they were able

For example, if your insured is a restaurant, what obligations does the food wholesaler make should their truck not show up? If the answer is “none,” perhaps the plan should include shopping for an alternative supplier.

If the insured is the buyer, review any purchase agreements with suppliers.

Is the supplier under any obligation to indemnify the insured in the event of an interruption to supply?

If the insured is the supplier, are there any contractual obligations to indemnify buyers in the event of an interruption to supply? Are there exception clauses for any specific causes of loss (act of God, delay due to government action, etc.)?

For example, if your insured is the food wholesaler, what does the insured owe to its restaurant buyers? If the answer is “too much,” perhaps the plan should include hiring counsel to review and improve contracts.

That’s all for now. Until the next round … cheers!

Kevin C Amrhein, CIC, is IA&B‘s newest education consultant.

He works with our CISR and CIC programs, as well as our special topic seminars and live webinars. Catch him at one of our upcoming professional training offerings: IABforME.com/education.

HEAR MORE FROM KEVIN AUTHOR KEVIN Amrhein delivers lively discussions on emerging coverage issues.

Join him for our upcoming special topic seminar.

EPL & D&O: Insurance Protection for Leadership April 2 | Philadelphia, PA April 3 | Baltimore, MD May 14 | Pittsburgh, PA Oct. 17 | Newark, DE Register today.

800-998-9644, option 1 IABforME.com/education

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Q&A WITH

BRAD ROSENKILDE

B

rad Rosenkilde is managing partner of R&A Insurance Inc. – a Hunt Valley, MD-based independent agency founded by his father and uncle in 1987. He is also chairman of the IA&B of Maryland Board of Directors.

Q. With you in the role of agency principal, it appears the R&A perpetuation plan is well underway.

What advice would you give to other families as they transition agency ownership from one generation to the next?

Q. Was it a given that you’d enter the family business? If so, what appealed to you about the industry?

A. First and foremost, to consider thirdparty intervention with a consultant.

We started the process before we had one, and we made a lot of mistakes on that first go-around. The consultant provided guidance and served as a mediator.

A. Being in the business has always been my number one goal. In my fifth grade yearbook, I wrote that I wanted to be a professional soccer player or an “insurance guy.”

It really was what I always wanted to do, and I was given the opportunity at a young age. I spent the summer after my junior year in high school prospecting and making cold calls for my uncle. He would give me $1 for an x date and $10 for an appointment. That’s how I started, and I fell in love with the sales process early.

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My second piece of advice is to check your egos at the door. Everyone needs to be level headed, let others speak, and actually hear them for what they say and not how they say it. There’s a lot of emotion involved.

You need mutual respect. It’s a fresh melding of culture, an assimilation as your agency grows between generations.

Identify your common goal, and find a way to get there.

MARCH 2019

Q. What are the best – and worst – parts of operating a family business?

A. The worst is separating your business relationships from your personal relationships. You can’t let it bleed over and bring personal issues into the workplace or vice versa. It can make family time uncomfortable. Building boundaries really helps.

The best part is sharing the reward of your hard work with the people you care about most. Whether it’s a family vacation or an afternoon out on the golf course, it’s the ability to spend time with your family as a direct result of the business you do together.

Q. If you were to generalize about Millennials, what would you say?

A. The first thing that comes to mind is a comfort level with technology. But there’s also a big paradigm shift on the cultural side. Millennials are living a more simplistic life. It’s not about big houses, country club memberships, huge SUVs, and swimming pools. They’re happy with a MacBook, Prius, and loft apartment.

Acquiring information and experiences is more gratifying than acquiring things.

Q. Speaking as a 30-something and as an agency principal, what advice can you offer on recruiting and retaining young talent?

A. Recruiting is the hardest part. I mean, we’re competing with tech companies.

Q. You’ve been involved with IA&B for several years – first on a Member Agent Panel input group, then on the Maryland Government Relations Committee, and most recently on the Board of Directors. What drives your commitment to IA&B?

When we talk about Millennials being comfortable with technology and liking simplicity, a lot of them want to work remotely – at a coffee shop or a park.

We need to allow people to work in their element to have happy employees.

And that’s especially important in our business because our product is our people. They are the face of the transaction. Our clients buy us.

A. It’s because of the value IA&B has brought to our agency. The association has helped us forge relationships with peers, consultants, regulators, politicians, and life-long friends. IA&B has been in my life for 15 years because of my dad.

[Brad’s father, David Rosenkilde, served as chairman of the IA&B Service Group from 2010-2011.]

Now we need to get the client to buy into the idea of remote work. We are a commercial-heavy agency, so we have a lot of face-to-face meetings with C-suite clients. There are still older folks who don’t appreciate Skype and virtual office meeting software in these settings.

Until you get involved, you don’t see how much the association does for us.

The fact that these people wake up every single day and fight for our interests is humbling. Just last week, I had IA&B’s HR consultant on the phone. And I talked to Claire [Pantaloni, vice president – advocacy

for IA&B] three days in a row this week because she’s working with the Maryland Insurance Administration for us.

You don’t realize the value of membership until you use it. Reach out. Take the help.

The IA&B staff is more than willing.

Q. What’s the best piece of advice your dad or uncle gave you about working in the industry?

A. They always say, “The sweet smell of commission never outweighs the stench of a bad account!” They taught me the importance of making decisions I can look back and be proud of. To treat clients and staff and carrier partners with respect.

You see first-hand how the decisions made before you impact the business today. You want to make your family proud of you. And I hope when Tripp [Brad’s young son] is sitting here in 20 or 30 years, he’s proud of the decisions I made before him.

Q. You bring a unique perspective as a young professional and an industry leader. So how do you view the future of the independent agency system?

A. The gloomy, worst-case scenario is that personal lines is on borrowed time. Not so much home and renters’ insurance, but it makes sense that auto insurance will become more pay to play as people reserve Zipcars and want to buy insurance coverage by the mile.

But why can’t we have both? Why can’t customers change their expectations and we keep up with them? We need innovation and new product development from our carriers. I don’t know how it will all play out, but a lot of our carriers only distribute through our channel, so they’re motivated to maintain our market share.

GET INVOLVED WITH IA&B IA&B RELIES heavily on agent input to meet members’ wants, needs, and expectations. Find a volunteer opportunity that best suits you, whether it’s on an input group or government relations committee, the board of directors or a grassroots action event. It’s a great way to expand your network and give back to your profession.

Contact IA&B Vice President – Membership Tim Wonder 800-998-9644, ext. 351 TimW@IABforME.com

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NEWS & NOTES

WELCOME

HOW TO MAKE SMARTER BUSINESS DECISIONS WITH DATA

REPERCUSSIONS OF LANDMARK PA SUPREME COURT CASE

BARRY CASPER INSURANCE AGENCY LLC Perkasie, PA

Competition is fierce, and it’s forcing all of us to work smarter. That’s why IA&B is pleased to announce its investment and partnership with IntellAgents LLC, a new industry-specific, analytics-driven organization.

The Supreme Court of Pennsylvania recently addressed an employer’s proper treatment of its employees’ personal information. In Dittman v. UPMC, the court held that:

NEW MEMBERS

DERLE K. WILLIAMS AGENCY Mountville, PA HELKOWSKI INSURANCE AGENCY Ambridge, PA JOSEPH DEFINIS INC. North Wales, PA KUTNEY INSURANCE AGENCY INC. Williamsport, PA MEEDER INSURANCE LLC Greensburg, PA PATRICK MCNEALIS INSURANCE & FINANCIAL GROUP Allentown, PA THE ORRINO AGENCY INC. Richboro, PA THE TODD LORENZI INSURANCE AGENCY LLC Uniontown, PA

Our end goal is to provide you with actionable insights to make more informed business decisions. The first phase is a compensation study – a study specific to independent agencies’ roles and to your geographic region.

In addition to IA&B, other IntellAgents investors include the Florida Association of Insurance Agents, Independent Insurance Agents of Illinois, Massachusetts Association of Insurance Agents, Michigan Association of Insurance Agents, and Independent Insurance Agents of North Carolina.

The insurance industry thrives on data analytics, and now it’s time for our member agencies to take advantage of it. Watch for more information in the weeks ahead.

THOMAS D. FROST AGENCY Pittsburgh, PA WEISSER INSURANCE Pittsburgh, PA

Employers have an independent duty to safeguard their employees’ personal and financial information collected and stored on its computer systems, and

• Employees can pursue a negligence claim against the employer when they have only suffered economic loss without physical injury or property damage.

Based on the arguments made and retained, this legal duty is likely to extend beyond employment. Therefore, the need to exercise reasonable care in safeguarding against a possible data breach is more necessary than ever.

What about Agencies?

The Dittman v. UPMC case is expanding the safeguards from customer and consumer information to include employee information. More importantly, the nature of the duty that is asserted in Dittman makes a negligence claim for “economic damages only” easier against a business that was breached.

This decision should serve as a reminder to all businesses that they must exercise due diligence in assessing their risks and use adequate cybersecurity measures, even though what adequate measures are or what qualifies as “reasonable care” have not yet been determined with any certainty.

This decision could also have repercussions on the cyber insurance market, both in terms of coverage and pricing.

BROOKS MCCALL & ASSOCIATES Wilmington, DE Learn more about membership by contacting IA&B Vice President – Membership Tim Wonder.

800-998-9644, ext. 351 TimW@IABforME.com IABforME.com/membership

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•

MARCH 2019

MEMBERS RECEIVE NEARLY $10,000 IN SCHOLARSHIPS Congratulations to our first-ever IA&B scholarship winners. In total, 37 individuals from 15 agencies benefited from $9,737 in education scholarships.

Member Agency – CISR Seminar Scholarships (valued at $200 each)

Karen Stahl Purdy Insurance Agency Sunbury, PA Melissa Yealy Keller-Brown Insurance Services Shrewsbury, PA

The Blessing Agency Muncy, PA Hamilton Insurance Agency Edinboro, PA

Member Agency – CIC Institute Scholarships (valued at $450 each)

The Jacobs Company Columbia, MD

Individual – Full CIC Designation Scholarship (valued at $2,200)

Apple Insurance Services Nottingham, MD

Keller-Brown Insurance Services Shrewsbury, PA

Shayne McIntosh JPI Insurance Associates, Dillsburg, PA

Jacob H. Ruhl Manheim, PA

Mosholder Insurance Agency Confluence, PA

Individual – Full CISR Designation Scholarship (valued at $1,000) Alexandra Yeity Cross Keys Insurance, Reading, PA

Keller-Brown Insurance Services Shrewsbury, PA One Stop Insurance Agency Silver Spring, MD

PA P&C Pre-Licensing Study Scholarships (valued at $399)

Snyder Insurance Agency Bethlehem, PA

Endrias Gebreab Murdoch Insurance & Investments Harrisburg, PA

Member Agency – Live CE Webinars (valued at $75) Apple Insurance Services Nottingham, MD The Jacobs Company Columbia, MD

Troast-Singley Insurance Agency Philadelphia, PA IABforME.com/scholarships

John A. Fiesta Agency Connellsville, PA One Stop Insurance Agency Silver Spring, MD

IA&B education scholarships are available to individuals and member agencies and can be used toward our pre-licensing education (Pennsylvania only), designation, and online CE programs. We’ll award another round of agency scholarships in June. Apply (no essay required!) by May 31.

STICK WITH US FOR RESOURCES THAT SAVE TIME & MONEY RENEW YOUR MEMBERSHIP & GET EXCLUSIVE ACCESS TO: ▲ ▲ ▲ ▲ ▲

Legal & compliance advice Discounted professional training Industry news Advocacy & government affairs Data for your business

Questions? Contact VP – Membership Tim Wonder at TimW@IABforME.com or 800-998-9644, ext. 351.

Renewal is easy! Your invoice is in the mail.

Or visit IABforME.com/Renew 11

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HR HEADQUARTERS

14

MARCH 2019

PLANT THE SEEDS OF TOMORROW TIPS FOR EMPLOYEE GROWTH

By Karen DiGioia

Where do you want your agency to be five years from now? How about 10 or 20? Follow along as our HR consultant, Karen DiGioia, shares strategies to meet your agency goals through employee development.

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HR HEADQUARTERS

S

pring is a time for growth, rebirth, and renewal. A time when the seeds that fell to earth last fall, and those we purposefully plant, begin to spring up from the ground. With the proper set of conditions and enough time, those seedlings will grow into the flowers, bushes, plants, and trees that will provide us with the food, shade, and beauty that we need in the near and distant future.

Now, maybe it’s because I’ve worked in human resources for so many (33!) years, but to me, this sounds like a parallel for strong agency management and employee development. Like a seed that falls to the ground and, with no human intervention, grows into a huge tree, some employees learn, grow, and develop with minimal external involvement. That approach may sound just fine to you. Keep in mind though, as with plants, if we take that approach with our employees, we will have no control over what grows, or where or when it happens. However, if we plant seeds and tend them well, we ensure that we have shade over our patio, a good crop of our favorite veggies in the garden, and flowers growing in the sunny spots where we can see and enjoy them.

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MARCH 2019

Employee development is about looking at ways to grow your current staff to meet the need of the agency in the future.

— Karen DiGioia

It’s the same with employees: If we make a point to develop our employees, we have control over how and what we grow.

You probably have some sense of what it takes to grow plants successfully – the right soil and exposure, enough (but not too much) water, nutrients, and time. But how do you grow employees?

Before we go any further and answer that last question, I’d like to simultaneously test out my ability to read your mind and see into the future. If I close my eyes and reach out over the months (I’m writing this in January; hence my obsession with spring!), I’m hearing things like: • My employees already have enough to do just focusing on their job today. How can they focus on another role that they might (or might not) have tomorrow?

• We’re a small agency. I don’t really have a need (or the time) to develop my employees.

To be clear, we’re not talking about developing employees just for the benefit of the employees. We’re talking about developing employees in a way that maximizes the utilization of their skills and abilities and also meets the agency’s needs. In order to do this, we need to start by clearly defining the agency’s needs.

If you don’t already have a clear vision of where you are today and where you are going, this is a good place to start. Among other things, it will help you to identify your agency’s need for employee development. If your vision for the future requires better use of technology, you can look for opportunities to grow a technical resource in house. If you have a growth plan that will require more producers in a year or two, look at your current CSRs to see if there are folks that you can develop into that role.

Employee development is about looking at ways to grow your current staff to meet the need of the agency in the future.

To be clear, if you have any employees that are struggling to meet the basic expectations of their current job, it’s probably not yet appropriate to think about their future

• This sounds like something that’s going to cost me both time and money. I’m not so sure I’m interested.

How’d I do? If I heard you accurately, I can tell you that your concerns are not uncommon – especially for small business owners. Yes, employee development has cost associated with it – cost of time and sometimes some actual hard dollars cost.

Committing to developing your employees will require you to get creative with workload. It will require an investment of your time - time you dedicate to your employees and time spent ensuring that you have a clear vision of where your agency is going. It may even involve some external training or expanded licensing that has cost associated with it.

Now, if you’re as good at reading my mind as I was at reading yours, you’ll hear me reminding you that every investment of time and money, done properly, is an investment in your agency that will pay off in the future.

By making an investment in the development in your employees you will: • Improve employee retention • Expand employee effectiveness and engagement • Create your own pool of internal talent from which to pull when an employee goes on leave or leaves the agency • Position your agency for growth and expansion

FIND HR HELP MANAGING EMPLOYEES requires more time than most agency principals have. That’s where your IA&B member benefits can help.

Look to HR Solution© – a complication of products and services available exclusively for IA&B member agencies – to simplify establishing or improving your human resources program. It includes base-level consultation and discounted professional services from author Karen DiGioia, of Mosteller & Associates.

Learn more by visiting IABforME.com/emp_mgmt or by contacting Karen DiGioia.

Karen DiGioia Mosteller & Associates 610-779-3870 karen@mostellerhr.com

• Fill existing gaps

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HR HEADQUARTERS

development. Looking back to our plant parallel, it was always my understanding that you should never fertilize a plant that is struggling due to a risk that you will overtax it. The same can be true for employees. If an employee is struggling, their development plan should focus on gaining the skills to flourish in the here and now.

For your other employees, you’ll want to work with them to create an individual development plan. This can happen at the same time as your performance discussions or can be a separate conversation. Talk with each employee about their skills, interests, and career goals, and match this up to the needs that you see or anticipate within the agency. This conversation alone will provide a strong, positive message to your employees.

Obviously, the process doesn’t stop there. Once you have a clear picture of the type of development that is appropriate, you can then look at how to make it happen. External training, coursework, and expanded licensing are all valid options for employee development. However, they are not the only way to go. Let’s talk about ways that you can provide development opportunities for your employees within the agency.

CROSS-TRAINING / JOB ROTATION Give employees the opportunity to learn other jobs, generally at a similar level, within the agency. With time, you may find that employees have enough knowledge to rotate between several roles. By doing this you will have employees with greater breadth and depth of knowledge, better backup for vacation or vacancies, checks and balances allowing for validation of work and error checking, and employees who are more interested and engaged in their work.

TEMPORARY REASSIGNMENT Do you have a temporary gap in a role – perhaps due to a leave of absence or an extended vacation – that typically would be a promotion for some of your employees? Rather than going outside the agency to fill the gap, consider giving an interested employee the opportunity to give the role a try.

Provide the employee with the support and training needed to enable them to succeed, and see how they do. This is actually how I made my way into my first professional HR job oh-so-many years ago. A coworker went on leave for a three-month period, and I did her job, on a temporary basis, while she was out. The rest, as they say, is history.

18

ASSIGNING CHALLENGING AND STRETCH ASSIGNMENTS Try to catch yourself thinking, “That employee’s just not quite ready yet.” Instead ask yourself, “How far from being ready are they?” If employees don’t stretch, they generally don’t grow.

Be willing to allow an employee to face a challenging assignment and see what they do with it. Be prepared to allow them to make mistakes (within reason) and provide feedback and guidance.

SPECIAL PROJECTS When you have special projects or presentations, don’t take it all on yourself. Look for ways to involve your employees. Just like with stretch assignments, involving employees in special projects can be the perfect opportunity for development of new skills.

MENTORING Mentoring provides a way to team up two workers. Often mentoring is used to team up new employees with more tenured ones, but it has other uses too. Consider teaming up employees in order to allow each to gain better understanding and knowledge of related but separate roles within your agency.

JOB SHADOWING If you have an employee who thinks they might have an interest in another role in the agency at some point in the future but isn’t quite sure, job shadowing can be a great way to help them decide. Allow employees to go along on customer visits and observe. Early in my career, I was considering career path change. I arranged to sit in on a training class associated with this career I was considering. While there, I determined that the job wasn’t for me. (It wasn’t a complete waste of time though. My now-husband was the trainer conducting the class, so the time investment has more than paid off!)

Hopefully I’ve planted some seeds for you (see what I did there?).

By providing the right opportunities for your employees to develop and grow, you will ensure a rich harvest for your agency.

And remember, if you have any questions or concerns, as part of your IA&B member benefits, you can call me for advice and clarification. I can be reached at 610-779-3870 or karen@mostellerhr.com.

Karen H. DiGioia provided this article on behalf of Mosteller & Associates, IA&B’s contracted human resources consulting firm.

MARCH 2019

TEAM TIPS

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MARCH 2019

CREATE YOUR CULTURE OF EXCELLENCE

By Rich Molden

For your business to thrive, your employees need to be engaged. Learn best practices from Rich Molden on how to strengthen your team.

E

verything that we do at Performance Development Group starts with this premise: The purpose of any business is to profitably create customer experiences so compelling that loyalty is ensured.

I’m confident we can all agree that customer loyalty and profitability are key components to success in all of our businesses. The challenge for you as an agency principal is how to inspire your people to turn each and every transaction and communication into a differentiated experience so compelling as to create customer engagement.

Engaged customers want to refer their friends, neighbors and colleagues to you. Before you know it, they become “crusaders” for your agency, excited to tell everyone they can – in person and on social media – about the wonderful experiences they have dealing with you, your people, and your agency!

Crusaders want compelling experiences that transcend mere transactions.

Crusaders want to do business with an organization they can advocate and recommend with passion. But in order to develop these crusaders, the wise leader must understand that the customer always comes second.

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TEAM TIPS

What? Yeah, you read that right: The customer comes second.

Your people must come first! If your people don’t feel valued and aren't passionately engaged, those compelling experiences we spoke of earlier can never consistently take place. For your business to thrive, your employees need to be engaged.

ENGAGED EMPLOYEES CREATE ENGAGED CUSTOMERS How do we forge this “engagement ring” of engaged employees and engaged customers? Lee Cockerell, former EVP of Operations at Walt Disney World said simply, “Treat your people as you would want your customers to be treated.”

How you treat your people is a culture thing. A strong healthy agency culture starts with a defined mission, sparked by a vision

ENGAGED EMPLOYEES CREATE ENGAGED CUSTOMERS STRENGTHEN YOUR TEAM and, in turn, build strong customer loyalty. Join IA&B and fellow member agencies that rely on Rich Molden, of Performance Development Group, for assessment tools and expertise dedicated to identifying, hiring, developing, and retaining exceptional performers. You’ll receive customized strategies to: • Avoid costly hiring mistakes • Turn marginal employees into top performers

Engaged employees create engaged customers, and employees’ engagement relies on good working relationships with their leaders. If your people view their manager as a problem, they will likely lose interest in the job and your agency because of it. According to a Gallup study, where 7,272 U.S. adults were interviewed, one in two had left their job to get away from their direct manager. Wow! Think about that: Half of working people have left what may have otherwise been a completely fine work experience due to having a less than pleasant experience with their boss! To your employees, your agency is only as good as that person’s direct manager.

BEST PRACTICES FOR A CULTURE OF EXCELLENCE Communicate your purpose, goals, and expectations to your people. Every person in your agency wants and needs to know, “What’s important around here?” Good communication and clear goals are the foundation for success.

Make sure you're hiring the right people to start with. This is the first step in building a team of future leaders. One of the biggest challenges in today’s business landscape is identifying, hiring, and developing good leaders who remain engaged with your employees and customers and want to stay.

Train leaders in collaborative techniques and empowering their team members. Cultures of excellence need leaders to be collaborative in nature. We have found that high-performing teams are best structured in a way that allows each individual to take the lead on a particular aspect of a project. As a side benefit, this allows your agency the ability to identify and develop future leaders.

Stimulate growth by developing a mentorship culture.

Mentorship can be between a leader and his or her direct reports, among peers, and even outside of your agency. Working with people we like, trust, and respect makes our job easier. It also fulfills our fundamental need in a relationship of seeking wisdom.

• Reduce conflict and stress • Develop strong leaders within your agency • Keep executives, managers, producers, and other professionals from derailing Learn more by contacting Rich Molden. Mention your IA&B membership for special pricing.

203-733-4045 rmolden@HireStrength.com HireStrength.com

and fueled with solid leadership. Your vision should be focused on creating and nurturing a culture of excellence that ensures each and every one of your people feels valued and is engaged.

Practice the Platinum Rule: Do unto others as they would have you do unto them. We need to continuously develop an understanding of the uniqueness of each individual and most importantly of ourselves! Our natural behavioral style as well as our driving forces, sometimes referred to as values or motivators, are unique to each of us. Understanding ourselves and others is the “secret sauce” to effective communication, collaboration, and continued on page 24

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MARCH 2019

THE FUTURE DOESN’T ALWAYS KEEP ITS PROMISES. FORTUNATELY, WE DO. Everything we do serves a single purpose — keeping a promise to take care of our customers. We know that’s your mission, too. By growing and innovating, we’re protecting your interests — today and into the future. Trust in Tomorrow.™ Contact us today.

To find out more about what we can do for you and your customers, contact our Pennsylvania representative, Harry Larkin, at harry.larkin@grinnellmutual.com. * Products available in Pennsylvania only

grinnellmutual.com “Trust in Tomorrow.” and “Grinnell Mutual” are registered trademarks of Grinnell Mutual Reinsurance Company. © Grinnell Mutual Reinsurance Company, 2019.

TEAM TIPS continued from page 22 mentoring. Indeed the Platinum Rule is the keystone to forging and maintaining a culture of excellence.

THE TIME IS NOW While it’s important to learn from the past as well as plan for the future, most of your people at work live in the right now.

You need to be present. Don't wait for the dreaded “inquisition” (read: annual review). Catch people doing something right, right now, and let them know about it. As for you … consistently walk the walk, inspire and stoke the fire.

Rich Molden is a Certified Professional Behavioral Analyst and the founder of Performance Development Group, experts in employee and customer engagement.

Mr. Molden has been a strategic partner of IA&B and its member agencies for over 20 years, providing assessment tools and expertise dedicated to identifying, hiring, developing, and retaining exceptional performers. Learn more by visiting HireStrength.com.

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MARCH 2019

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