Primary Agent - May 2023

MAY 2023

JULIE WEBB

TALKS RECRUITMENT & TALENT DEVELOPMENT

EXCLUSIVE MEMBER MAGAZINE

ALSO INSIDE EMPLOYEE RETENTION INSIGHTS

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MAY 2023

CONTENTS FEATURED 8

Q&A WITH JULIE WEBB With IA&B Member MPB Insurance & Risk Management, Julie Webb talks about recruiting, developing, and mentoring the next generation of iindependent agents.

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> > > > 19 JOIN US ON SOCIAL MEDIA: Facebook.com/IABforME LinkedIn.com/company/IA_and_B Twitter.com/IA_and_B YouTube.com/@IA_and_B IA&B Podcasts can be found at:

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, 650 Wilson Lane, Suite 200, Mechanicsburg, PA 17055.

Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2023-05, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B. Copyright 2023. 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.

EMPLOYEE RETENTION INSIGHTS Karen DiGioia, of IA&B’s contracted human resources consulting firm, takes a deep dive into what motivates employees and how employers can keep top performers from “being great for someone else.”

WOMEN'S CONFERENCE RECAP See highlights of the sold-out, inaugural IA&B Women's Conference, which brought together 131 women insurance professionals from across Pennsylvania, Maryland, and Delaware on March 29.

MONTHLY 2 CHAIRMAN’S MESSAGE 3 DON’S DISCUSSION 4 COVERAGE CORNER 6 NEWS & NOTES 19 STAFF PROFILE 21 UPCOMING EDUCATION IABforME.com |

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CHAIRMAN’S MESSAGE

RECRUITMENT & RETENTION Late spring brings internships, graduations, and fresh starts – making it the perfect time to focus on the next generation of insurance professionals.

The May issue of Primary Agent magazine is timely.

You’ll find an interview with IA&B Member Julie Webb, who discusses her commitment to foster new talent. Plus, IA&B HR Consultant Karen DiGioia penned a feature article on employee retention.

This month also marks the spring IA&B Board of Directors meeting, where we will revisit the organization’s new strategic plan, which emphasizes the recruitment and training of new industry talent. You can expect to hear more about this in the months ahead as IA&B fleshes out and begins to implement the plan.

While our industry’s perpetuation challenge is great, the strength of our collective effort is greater. There are exciting opportunities on the horizon. Stay tuned!

Until next time,

INSURANCE AGENTS & BROKERS 650 Wilson Lane, Suite 200 Mechanicsburg, PA 17055 191 Main Street, Annapolis, MD 21401 800-998-9644 | IABforME.com

IA&B BOARD OF DIRECTORS OFFICERS Richard M. Rankin, CIC - Chair Murray Insurance Associates, Inc. | Lancaster, PA Sarah Brown, CIC, CRM, AFIS - Vice Chair Keller Brown Insurance Services | Shrewsbury, PA

MEMBERS Greg Bennett

Bill Purdy

Kate Dawson, CPIA

Kent Reynolds, CIC

Andrew Enders, Esq.

Jason Rodriguez

Len Gieseler, LUTCF

Donna Roper

Bruce D. Kraft, AAI, CIC

Candace Shoupe, AAI, AIC

Shayne McIntosh, CIC

Tara Silfies, CPCU

Chris Miller, CIC

Bob Smyrl, CIC

Michael Papa, CIC, MBA

Michael Thomas

Famous & Spang Associates Aberdeen, MD Ferri Dawson Insurance Murrysville, PA Enders Harrisburg, PA

Evans Hauseman & Richard, Inc. Pottstown, PA Arbor Insurance Group Allentown, PA

JPI Insurance Associates Dillsburg, PA

Miller Insurance Protection Team Jonestown, PA

Richard M. Rankin Chairman of the Board

Diversified Insurance Industries, Inc. Hunt Valley, MD

Purdy Insurance Agency, Inc. Sunbury, PA Blue Ridge Risk Partners LLC Hagerstown, MD Prominent Insurance Svcs Wilmington, DE E K McConkey & Company York, PA CBM Insurance Agency New Castle, DE

Hampson-Mowrer Agency, LLC Bethlehem, PA Robert L. Smyrl, Inc. Hatfield, PA Lighthouse Insurance Svcs Gambrills, MD

NATIONAL DIRECTORS Mike Ertel (PIA) The Jacobs Company, Inc. | Columbia, MD Mark Monroe (IIABA) Griffith Insurance, LLP | West Chester, PA Diana Hornung Hanby (IIABA) IOA National, Inc. | Wilmington, DE

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MAY 2023

DON'S DISCUSSION

DON'S DISCUSSION IA&B Legal & Corporate Affairs Director Don Bankus

Are you a member with a question?

Contact Don at 717-918-9204 or DonB@IABforME.com.

an age at which a licensed producer becomes totally exempt from the requirement to QUESTION: Istaketherecontinuing education (CE) in order to renew their license?

ANSWER: While the statutes and regulations governing CE requirements vary for each of IA&B’s three states, the good news – at least if you’re an optimist – is that each state may provide at least some degree of exemption or credit for the seasoned producer. The available exemptions/credits are as follows:

DELAWARE General requirement: Resident licensees are required to complete 24 credit hours during each 24-month licensing period.

Exemption – credit: A licensee who has been continuously licensed for 25 years or longer prior to the start of their licensing period, or who holds an approved professional designation, shall receive an automatic 12 credits in each biennium.

Of note: The 12 automatic credits cannot be applied to fulfill any applicable flood (2 hours), ethics (3 hours), or long-term care (3 hours) CE requirements.

Applicable statutes/regulations: 18 DE Admin. Code 504, at Section 8.0 – Licensee’s Responsibility (specifically at subsection 8.3 – Automatic Credit)

MARYLAND

PENNSYLVANIA

General requirement: Licensees are required to complete 24 credit hours during each 24-month licensing period.

General requirement: Licensees are required to complete 24 credit hours during each 24-month licensing period.

Exemption – credit: If a licensee has held a license for 25 or more consecutive years as of Oct. 1, 2008, the licensee shall only be required to complete 8 hours of CE in each renewal period.

Of note: If you qualify for the above exemption, you’re still required to meet the flood (2 hours), ethics (3 hours), and long-term care (2 hours) CE requirement, if applicable.

“Grandfathering” exemption: A licensee who was licensed prior to Jan. 1, 1971, and who has been continuously licensed for all lines of authority since that time, is exempt from CE requirements.

Of note: If the licensee adds a line of authority, or lets his or her license lapse, the exemption becomes inapplicable.

“Grandfathering” exemption: In addition, per MIA Producer Bulletin 13-07, licensees who were age 70 and above as of April 30, 2013 are exempt from the general CE requirements.

Applicable statutes/regulations: 40 P.S. Section 310.8 (specifically subsection 310.8(c)(1)

Of note: If you qualify for the “grandfathering” exemption, you’re still required to meet the flood (2 hours) and long-term care (2 hours) CE requirements, if applicable.

As you can see, none of our three states is overly generous with regard to eliminating and/or reducing a seasoned professional’s CE requirements. And while we continue to lobby the states’ respective insurance departments and legislatures for amendments or revisions to broaden eligibility for the grandfathering of CE credits, out attempts thus far have yet to bear fruit.

Applicable statutes/regulations: MD Ins. Code Section 10-116 (specifically at subsection 10-116(a)(3)(iii); Code of Maryland Regulations (COMAR) Section 31.03.02.03 (specifically at subsection B); Maryland Insurance Administration Producer Bulletin 1307 (specifically at subsection II)

This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

IABforME.com |

CONCLUSION

An audio version of this article is also available as a podcast

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An audio version of this article is also available as a podcast

BUILDING REPLACEMENT COSTS – HOW TO PROTECT YOURSELF AND YOUR COMMERCIAL CLIENT

By Cathy Trischan, CPCU, CRM, CIC, ARM, AU, AAI, CRIS, MLIS, TRIP Most agents have had the same conversation numerous times.

Your insurer feels the building replacement cost supplied by the client is too low. Your client insists the insurer’s number is too high.

“I can’t sell the building for that! I can rebuild this building for $150 a square foot!” Clearly, some client education is needed.

According to Verisk’s 360Value Quarterly Reconstruction Cost 4

Analysis, total reconstruction costs increased an average of 9.3% from October 2021 to October 2022.

Labor and material shortages and inflation continue to have an effect on property replacement costs.

Most property owners do not know the true cost to rebuild their property. Agents, wanting to help, often prepare a replacement cost estimate. There are a few problems with this, for both the client and MAY 2023

the agent. First, most agents do not have access to a full replacement cost estimating program. They use the insurance to value calculator in an insurer rating program to come up with a rough number based on location, construction type, square footage, etc. Even if the agency does have access to an estimating program, it is unlikely that it has all of the information about the building needed to come up with an accurate number. Does the agent know details

COVERAGE CORNER about the basement, roof covering, HVAC system, and numerous other building components? The tools are excellent, but remember the old adage – garbage in, garbage out.

It is the insured’s responsibility to provide a limit of insurance.

The agency who tries to help and provides incorrect information creates a problem for the insured and for itself – that problem is E&O. If an agency helps an insured calculate a limit, the agency should include a disclaimer making the insured aware that the number is just an estimate based on limited information. The agency should recommend that the client obtain a professional appraisal, even if the agent believes the client will not do so. Not only will such a disclaimer emphasize the importance of professional advice, it can aid in the defense of an E&O claim should one be made. (IA&B has a Disclosure for Replacement Cost Estimators available for use by member agents: IABforME.online/EO-prevention) Other than the agent’s educating the insured about the importance of getting an accurate replacement cost, what else can be done to protect the client?

If the insurer agrees that the limit chosen is correct, it may agree to add the optional coverage of agreed value. While it is still possible that the limit chosen will be too low, the possibility of a coinsurance penalty is eliminated because agreed value suspends coinsurance. Some insurers offer endorsements that provide the same type of protection on a Businessowners Policy (BOP). The ISO endorsement BP 04 83 01 10 Removal of Insurance-to-Value Provision is an example.

Blanket limits covering building and

personal property and/or property at numerous locations can reduce the possibility of an inadequate limit. If the insured has two buildings included in a blanket limit, for example, the full blanket limit is available should only one building be damaged. Adding agreed value ensures that there will not be a coinsurance penalty.

Inflation guard is an optional coverage on a property policy that increases the limit by a small amount each day. As an example, if a 10% inflation guard is added, there would be an additional 10% of the limit available for a loss on the last day of the policy period. If the loss happens halfway through the policy term, an additional 5% of the limit is available.

Higher replacement costs are sometimes the result of increased demand after a disaster. Adding an endorsement such as CP 04 09 10 12 Increase in Rebuilding Expenses Following Disaster can provide an additional percentage of the building limit to the insured if the building limit is inadequate due to the price increases that accompany a demand surge.

Lastly, some insurers have endorsements that provide an additional amount of coverage should the insured find that, at time of loss, the limit selected is too low.

The insurer will charge a premium for the extra coverage when the claim is paid, a bill most insureds will gladly pay in exchange for the extra dollars of coverage.

Coming up with a proper replacement value for a building is important and is, ultimately, the insured’s responsibility. An agent who wants to help should be cautious in doing so. And regardless IABforME.com |

of who comes up with the limit, coverage options to help reduce the effect of an inadequate limit should be explored. These steps help the agency and the client.

Til next time!

Cathy Trischan, CPCU, CRM, CIC, ARM, AU, AAI, CRIS, MLIS, TRIP is IA&B’s commercial lines education consultant. She works with our CIC and CISR programs, as well as our live CE webinars. Catch her at one of our upcoming courses: IABforME.com/education

LIVE CE WEBINAR

|

Learn additional E&O loss prevention techniques at our upcoming live webinar.

AGENTS’ E&O: DEFENSES AND PREVENTIONS FOR THE INSURANCE PROFESSIONAL MAY 16 1 - 4 PM

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Register today. IABforME.com 800-998-9644, option 1

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IA&B YOUNG AGENT AWARD NOMINATIONS

LEADERS OF THE Mike Harter and Donna Roper, principals at McConkey Insurance & Benefits, share insights on why they value AgentPAC. Not only do they contribute generously each year, but they also encourage their agency’s entire senior management to support the PAC.

Are you or someone you know a rising star in our industry? Nominate yourself or someone else for the 2023 IA&B Young Agent Award.

IA&B will recognize three exceptional young agents – one each from Pennsylvania, Maryland, and Delaware – for this honor.

Mike: Navigating the complexities of the legislative system is not a task that an individual can easily take on themselves. To keep the independent agency system viable, we need to have a collective voice at the state level. Supporting AgentPAC has been a valuable investment. While agents may prefer to act independently, a collective effort to remain informed and be heard in our state government is key for our survival. We cannot allow policymakers to act on decisions in which they are not fully informed.

Making a commitment to AgentPAC is an investment in the future of our agency, the same as making an investment in the correct people and technology. In order to grow and protect your business, you need to invest wisely. AgentPAC is an insurance policy working against uninformed decisions which may greatly impact our businesses.

Donna: The insurance industry is an extremely complex and regulated business. As agency owners, we juggle the demands of taking care of our clients while running our business. It is difficult to find the time to be fully involved in all the legislative changes that are continuously proposed.

By supporting AgentPAC, we can trust we have advocates speaking up for us and looking out for the industry we love. While we work hard to remain fiercely independent, it is comforting to know we have a collective voice in our industry’s future through the advocacy of AgentPAC.

▲ Highlighted in the October 2023 IA&B Primary Agent magazine ▲ Complimentary attendance to and recognition at IA&B’s October 2023 Young Agent Conference ▲ Featured in a video produced by IA&B Award criteria: ▲ Employed by an IA&B Member Agency for at least one year ▲ Licensed P&C agent ▲ 40 years old or younger on Oct. 1, 2023 ▲ Community volunteering or service ▲ Demonstration of leadership ▲ Participation in IA&B education or events Nomination forms are available online.

About AgentPAC AgentPAC is IA&B’s state-based, bi-partisan political action committee which supports the election of candidates and legislators who understand the issues important to the independent agent and broker community. Support of these candidates who are critical to IA&B’s government affairs work would not be possible without AgentPAC contributions from engaged IA&B members.

Learn more and contribute by visiting: IABforME.com/political_advocacy 6

What’s in it for the winners:

MAY 2023

IABforME.com/Agent-Award Questions? Contact IA&B PR Director Karen Robison KarenR@IABforME.com 800-998-9644, ext. 606

NEWS & NOTES

TEXT MESSAGE MARKETING WEBINAR Did you know that 70% of consumers have opted in to receive texts from businesses? Or that research shows 51% of consumers reply to texts in under two minutes?

It’s time for your insurance agency to rev up its marketing with a strong text message strategy. Join IA&Bpartner Agency Revolution for a free webinar, available exclusively to IA&B members.

Best Practices for Text Message Marketing

Harford Mutual Insurance Group is a Ward’s 50®

Thursday, May 11 | 2 PM EST Register directly with Agency Revolution: learn.agencyrevolution.com/iab-230511

top-performing property-casualty insurance company for the second consecutive year.

IA&B EDUCATION SCHOLARSHIPS APPLICATIONS

2022 & 2021

Apply for the next round of insurance education scholarships. This fall IA&B will award two individuals with full CIC and CISR designation scholarships, as well as member agencies with scholarships for their staff to attend CIC, CISR, and CE courses.

We partner with independent agents to insure restaurants, contractors, mercantile, and other commercial entities.

Scholarships to attend licensing study courses are available throughout the year.

Applications are available online: IABforME.com/IAB-educationscholarships

Insuring Opportunity through Mutual Success.

Questions? Contact IA&B Administrative Assistant Sarah Haas SarahJ@IABforME.com 800-998-9644, ext. 104

HarfordMutual.com 800.638.3669

IABforME.com |

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Q&A with

JULIE WEBB Julie Webb, CIC, CPCU, is vice president for MPB Insurance & Risk Management in Harrisburg, PA. She is also an avid proponent of mentoring and developing young talent. To this end, Julie supports numerous projects, including Big Brothers Big Sisters, the Pennsylvania Future Business Leaders of America, University of Pittsburgh Women in Business, and IA&B’s Intern Day. Q. How did you get your start in the insurance industry?

And how has your career progressed?

A. I’ve always enjoyed helping people, leading teams, and volunteering. After college, I thought I would take these skills and my business degree and work for a non-profit.

However, during the spring semester of my senior year, I met a recruiter from GEICO Insurance who was hiring for a leadership development program, and she sold it!

At GEICO, I obtained my license and started my CPCU, developed my business and sales acumen, built teams, earned promotions, and gave back to my community. What young professional wouldn’t want that?

After seven years at GEICO and five different addresses, I returned to Pennsylvania with my husband and son to be closer to family and put down some roots. That’s when I found Keystone Insurers Group and was properly introduced to the independent agency model. My time at Keystone was a master class in agency leadership and carrier relationship management. I was fortunate to learn from some of the best agency principals in the business. They were helping business owners take care of their employees with group health insurance, protecting schools and non-profits from mission-ending claims, and creating opportunities for their own employees and their families. Who wouldn’t want to do that, too?

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Q. MPB Insurance is a relatively new division of a larger financial institution. Tell us about starting and growing your team. What lessons have you learned along the way?

A. In March of 2020 (yes, that March), I started MPB Insurance & Risk Management, a sister company to Mid Penn Bank. Believe it or not, starting an insurance agency in the middle of a pandemic was the easy part. The hard work, the important work, the lifelong work is team building. Part of our mission at MPB Insurance is to “foster a winning culture – a culture that puts our team members first and empowers them to advocate for our clients.”

To bring this mission to life, I’ve learned to incorporate three values into my daily routine: intentionality, “highest and best use,” and future focus.

At the beginning of the year, our team almost doubled in size through an acquisition. We now have a great group of people working together, but that’s not good enough. We are intentionally building a team based on trust through a value-defining exercise. Once defined, these values will be our north star in how we interact with each other, our clients, and our partners. It will also be built into our hiring process and performance evaluations. It can be messy and painful, but doesn’t that make it worth it?

That’s intentionality.

Ask anyone on my team what “highest and best use” means, and they will tell you it’s spending most of their day on tasks where they add the most value. As a leader, I love to uncover my teammates’ strengths and build on them.

Everyone on the team has unique interests and skills, and leveraging them improves the overall success of the team.

MAY 2023

ON THE COVER Our agency is only three years old, but we have an organizational chart for what it will look like in 2030 and beyond. This keeps us focused on the future in a couple of ways. It shows our team members where we are going and how their career path will help us get there. As the leader of the agency, it keeps me focused on developing talent internally and externally for today and tomorrow.

Team building never ends. As a leader of a growing team, I take that very seriously. I’m always looking for opportunities for my team to continue their education, learn something new, or find a mentor. After all, I can’t do this all by myself. Time spent investing in your people is always time well spent.

Q. You generously donate your time to many projects (including IA&B’s Intern Day) that focus on mentorship and talent development. What drives your commitment?

A. I have a vision that when asked “How did you get into insurance?” the answer from the next generation of insurance professionals will never be “Oh, I fell into it.”

Instead, it will be, “An insurance agent came into my fifthgrade class and taught me about insurance careers,” or “I had a mentor in high school who practiced insurance,” or “I had a college internship at a local firm … and I decided to pursue a career in insurance.” This all takes time, but if we don’t invest in it, who will?

Q. What’s your favorite part of working in the insurance industry?

A. The challenge of it. This magazine’s audience knows we are usually selling an extremely complex and intangible product to someone who doesn’t want to buy it. On some days, it’s frustrating and even defeating. But there are days when you or your team helps a client understand the importance of insurance and how it protects their business or family – those are my favorite. And they’re my favorite because you don’t get to that day alone. It takes years of continuing education, coaching, mentoring, and practice.

That’s the fun part.

At the beginning of 2021, I was looking for an experienced Client Relationship Specialist. To me that meant someone who had been working in an agency quoting multiple companies and servicing commercial lines customers in our agency management system for three to five years.

Sound familiar? My recruiter sent me a resume for a college student finishing his senior year from home due to Covid. At first I said, “No.” He didn’t check my experience boxes. Then she said, “He’s interested in a career in insurance.” Now my answer was, “Yes.” I interviewed him, and he sold me on hiring him. He’s a key player on our team because, as the CEO of our bank says, he has the attitude, aptitude, and work ethic to be successful. It takes time, but he’s learning the insurance piece. He was the first person we hired without all of the experience, but he won’t be the last.

Of course there’s work to be done beyond hiring.

Insurance agents are some of the most communityminded business owners I know. So I know I’m preaching to the choir when I say, show up for the middle school career day, invite a high school student to your agency, or host an intern for the summer. Where I think we can be better is sharing the resources we use when we volunteer so we all aren’t recreating the wheel.

Our agency is three years old, and we will host our second intern this summer. When we first created our program, I reached out to IA&B who pointed me to Invest (InvestProgram.org). We adapted what they had to work for our agency. I’d love to see what other agencies do, and I will happily share the intern program we created with anyone who asks.

Q. What’s your favorite community or volunteer project you’re involved in? Tell us about it!

Q. It’s no secret that independent agencies struggle with recruitment and retention, particularly of young talent.

What do you think that our industry, as a whole, can do to address this?

A. Mid Penn Bank partners with Big Brothers Big Sisters of the Capital Region on a worksite-based mentoring program, Beyond School Walls. Once every two weeks, a group of students from a local high school come to our office for mentoring sessions. Through this program, I have the honor of mentoring a young woman who is now a high school senior. Building a relationship with her and watching her grow over the past two years has been one of my most rewarding experiences.

A. Everyone has to do a little bit, and we have to be open to taking a risk on someone who doesn’t check all of our experience boxes.

Continued on page 14

IABforME.com |

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IA&B PARTNERS PROGRAM

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MAY 2023

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IABforME.com |

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An audio version of this article is also available as a podcast

By Karen H. DiGioia, Herbein | Mosteller HR Consulting “If you stumble onto someone great, you’d better keep them, or they’ll go be great for someone else.”

organizations can do to increase their likelihood of retaining the talent that they have.

Shortages. In 2020, it was toilet paper, PPE and COVID tests. 2021 brought us computer chip and used car shortages (and heaven help you if you tried to find an Uber that year). In ’22, baby formula and sriracha were in short supply. While supply shortages have shifted from year to year, one common shortage, post-pandemic, has been the shortage of talent.

Why do people work? To start with the obvious – most of us work so that we get paid and can pay for food, shelter, clothing, our favorite frothy coffee drink from the local coffee shop, and whatever else is necessary and important to us. Many of also work so that we have medical and other benefits coverage and can fund our retirement plan.

According to a February 2023 article published by the U. S. Chamber of Commerce, there are over 10 million job openings today and 5.7 million unemployed workers. Even if each person who is unemployed had the right set of skills to fill one of those 10 million jobs, we’d still have more than 4 million jobs open. Decreased labor participation rates in combination with high levels of new job creation have largely contributed to this “shortage,” and there’s no sign that this will change any time soon. On top of this, since 2022, we’ve been experiencing the “Great Reshuffle.” More than 4 million workers leave their jobs each month, most taking a job with another employer. The bottom line – employees are in short supply, so employers are focusing heavily on retaining the talent that they have.

The quote at the beginning of this article came from the CEO of one of my clients. The organization that he leads recently completed an IT system conversion, and through the project, he uncovered some “great” employees and is focused on finding ways to ensure that they don’t “go be great for someone else.” In light of the ongoing shortage of talent, this is a challenge that all organizations share. Let’s talk a bit about why people work and what 12

But is that all there is to it? Do we only work for the money? I asked ChatGPT (an AI language model developed

by OpenAI, in case you haven’t heard) why people work, and here’s the answer that I got.

There are many reasons why people work, and these reasons can vary depending on the individual and their circumstances. Here are some common reasons: 1. To earn a living: One of the primary reasons people work is to earn money to support themselves and their families.

2. To pursue a career: Some people work to develop their skills and advance in their chosen career field.

3. To feel a sense of purpose: Many people find meaning and fulfillment in their work, which can give them a sense of purpose and contribute to their overall well-being.

4. To gain social connections: Work can provide opportunities for people to build relationships with coworkers and other professionals, which can be important for personal and professional growth.

5. To contribute to society: Some people work in jobs that allow them to contribute to their communities

MAY 2023

EMPLOYEE RETENTION or society as a whole, such as healthcare workers, teachers, or nonprofit employees.

6. To stay busy: Work can provide structure and routine to people’s lives, and some people may choose to work simply to stay busy and avoid boredom.

These are just a few examples of why people work, and the reasons can be complex and multifaceted. Ultimately, the decision to work is a personal one that depends on an individual’s goals, values, and circumstances.

Let’s spend some time unraveling each part of this answer.

While money is part of the answer, it’s far from the only answer. I’ll take a bit of creative license when working through ChatGPT’s answer (because we all know that ChatGPT knows a lot, but she doesn’t know everything – at least not yet).

Competitive Compensation and Benefits (to Earn a Living) It’s important to begin with a foundation of competitive pay and benefits. Anecdotal pay information becomes more and more accessible to employees every day. It’s posted outside businesses on billboards and signs, listed on Indeed, and available (accurate or not) on a variety of online platforms. As pay transparency laws become more common, the availability of this data will only increase.

While pay is far from the only reason people work, knowing what other similar organizations pay and offering competitive pay and benefits is at the foundation of an organization’s ability to attract and retain employees.

I’m going to put flexibility and work-life balance into the “competitive compensation and benefits” category. While all employees appreciate flexibility in their work schedule and the ability to maintain a good work-life balance, for some employees, that flexibility is a necessity. Earlier in this article, I addressed the decrease in labor participation rates, but didn’t talk about the “why” behind this decrease. A meaningful percentage of those who “opted out” of the workforce did so because other responsibilities – often related to the care of children or other family members – have made work difficult or impossible. By providing flexibility when feasible, including options for remote or hybrid work, flexible hours, or part-time work, and being open to accommodating the needs of your employees, an employer improves its ability to retain (and attract) employees.

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Opportunity and Growth (to Pursue a Career and Build Relationships to Grow Through Social Connection) Employees come for the job but stay for the career.

They want to know that there is a path for growth and development. But what does “growth and development” look like? To borrow ChatGPT’s words, the answer to this “can vary depending on the individual and their circumstances.”

For some, “development” may focus on the current job – expanding knowledge and becoming more effective and efficient in that role. For others, it may mean a broadening of responsibilities – taking on new challenges and higher-level work. Or it may be a move into a completely different role. The key to determining what’s right for each employee at any point in time is communication – chat (not GPT) with employees about their strengths, interests, and aspirations, and look for ways that they align with the agency’s needs. Have a development plan in place for each employee that provides the opportunity for growth.

Provide training, development, and mentoring programs to your employees to help them build new skills, build relationships, and advance their careers (a definite winwin that will benefit the employees and the agency).

To Feel a Sense of Purpose, Overall Well-Being; Gain Social Connection; and Contribute to Society What can an employer do to ensure that their employees find meaning and fulfillment in their work? There are number of “subcategories” that I’d place under this one.

Strong leadership Strong leaders are active and clear communicators.

They ensure that employees understand the mission and vision of the organization. They talk about the ways that the agency contributes to the community and positively impacts the lives of customers. They ensure that each employee understands the way that they and the work that they do contributes to the mission, vision, and purpose of the organization. This helps to ensure that employees know that the work that they do has meaning and value and helps to build a sense of fulfillment.

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They also understand that communication is a two-way street. They actively solicit feedback and input from employees (more on that in a moment) and consider alternative perspectives.

Recognition, feedback, and appreciation We all want to feel appreciated. Recognize employees and celebrate successes and achievements. Providing feedback, even constructive criticism, lets employees know that they are valued. Constructive feedback gives employees the opportunity to improve in their job performance. Positive feedback shows appreciation for contribution and recognition of efforts.

Build a positive work culture A positive work culture is key to retaining employees.

In addition to the things that we’ve already discussed, a healthy culture is dependent upon trust, respect, empathy, cooperation, and accountability (authenticity … fun … humor, the list goes on). Healthy organizations encourage open communication and create a collaborative and supportive environment. Organizations that solicit input and consider the perspectives of all employees have higher levels of employee engagement and lower turnover.

On her last day of kindergarten, Julie’s daughter’s career aspiration was to be an insurance agent.

Q. What keeps you busy outside of work?

Hopefully ChatGPT and I have given you some things to think about today. Addressing employee retention isn’t a “quick fix,” but the good news is, most of the things that employers can do to improve retention will also improve the performance of the organization. All the things an agency can do to increase the likelihood that employees will continue to choose to be “great” working for them are also things that will contribute to the overall “greatness” of the agency as a whole.

If you’re struggling with employee retention challenges or anything else HR-related, don’t forget that one of the benefits of your IA&B member is expert HR advice. I can be reached at 484-465-1201 and khdigioia@herbein.com.

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

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A. I am invested in developing young girls and supporting women in business. This stems from my own experiences and my desire to create a more diverse independent agency system. I want to work with other women and to help develop the next generation of women. This is what fills me up, and it’s important work that we, as women, need to do. That’s why I am involved with the Girl Scouts and the Central Pennsylvania Chapter of the Women’s Business League, which I started last year with a friend.

Girl Scouts is all about building leadership skills to help girls grow up to be confident businesswomen, while the Women’s Business League is a place for women to connect and talk about shared experiences.

Of course, like most women, I have many roles, and two of my favorite are being a wife and a mom. I recognize the importance of having a strong support system, so my husband and I work together to build our kids’ confidence and independence. We share the experiences that we have in the business world with them, and we expose them to different careers – like insurance.

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Don Bankus, Legal & Corporate Affairs Director

Primarily to provide guidance and assistance to members with inquiries relating to statutory and regulatory compliance and navigation; the status and interpretation of existing and pending caselaw as it may apply to dayto-day operations; and industry related topics, as well as to assist with IA&B corporate related matters.

Best part of your job: Interacting with and getting to know IA&B’s members, and in turn learning from them about who they are and what they do. Before joining IA&B, my perspective regarding insurance professionals and agencies was very limited, but my time here has given me a deep appreciation and respect for what it is they do, and how much they enrich and serve their communities.

What did you do before working at IA&B? Immediately prior to joining the IA&B, I was employed as a paralegal, with more than 18 years of training and experience in the legal profession, which provided a wellrounded background in many facets and areas of law.

What keeps you busy outside of work?

Being from Hershey, which has a very rich golf history, I like to golf (though sometimes lately it doesn’t seem to like me back) and enjoy being outdoors, and I try to stay fit and healthy, at least as the best I can.

You can reach Jed at: 717-918-9204 DonB@IABforME.com

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