• contact us
  • log in
Agents Alliance Logo Agents Alliance Logo
  • Who We Are
    • Our History & Mission
    • Board of Directors
  • Member Benefits
    • Member Referral Program
    • E&O Insurance
    • Preferred Markets
    • Agency Management System
      • Agency Matrix
      • Hawksoft
      • QQ Catalyst
    • Agency Services
      • Live Calls/Warm Transfers
      • Hiring & Development
      • Tools & Worksheets
      • Cyber Security Protection
      • Cross Marketing
      • SEO Services
      • VoIP Systems
    • Consulting Services
      • Ganis Consulting
      • Optimum Performance Solutions
    • Educational Discounts
      • The National Alliance
      • The National Underwriter
      • Online CE Courses
      • Harassment Training
    • Legal & Forms
      • Free Legal Hotline
      • Legal Forms
    • Raters
      • TurboRater
      • PL Rater
    • Other Discounts
      • Disability Insurance Program
      • Constant Contact
      • Lenovo Business Products
      • Office Depot
      • UPS Shipping Services
  • Become a Member
  • Conference
    • Conference Overview
    • General Information
    • Call for Presentations
    • 2019 Conference Program
    • Pricing & Registration
    • Photos
    • Hotel Accommodations
    • Golf Tournament
    • Sponsors
    • Exhibitor Information:
      • Booth Registration & Pricing
      • Conference Policies
  • Facebook Group
  • News
  1. Home
  2. Blog
  3. Agency Management for Insurance Agents
  4. How Your Agency Benefits From Higher Insurance Agent Salaries

How Your Agency Benefits From Higher Insurance Agent Salaries

  • Christie
  • Thursday, June 09, 2016

Everyone likes to get paid well, but is higher pay a business strategy? How could paying people more be good for your insurance business? While it can seem counter-intuitive to look at increasing your payroll expenses when you're seeking success in the insurance industry, think of higher pay as insurance for your business. It's an investment in people that will pay off over time. Increasing the insurance agent salary that you pay won't necessarily hurt your bottom line. It could actually help it.

Investing in People Shows That You're an Excellent Employer

What would you prefer: an employee who's biding time until the next opportunity becomes available or an employee who considers that joining your insurance agency is a savvy career move? Yes, paying lower salaries is a way to keep expenses low. However, when you advertise a position with a lower salary, you may turn away the very employees who could bring your business to the next level. Make yourself an employer of choice by creating a strong and supportive business culture, but do it by paying higher salaries for well-qualified individuals.

Higher Salaries Can Improve Employee Performance

Consider your higher salaries to be an investment in better customer service and business management. If an employee is satisfied at work, that person may have a higher job performance. While various studies have found that better job performance is or is not tied to higher pay, there's reason to look into how you compensate your employees. In a study cited in the Harvard Business Review, employees whose wages were increased performed far better than those who remained constant: "It was obvious to them that we didn't have to give this additional compensation, but that we had chosen to." It's important to show a career path through your organization as well. Show employees that there is an opportunity to earn a higher salary through hard work and dedication, and you could improve your business performance as well.

Higher Salaries Inspire Commitment

Employee turnover is painfully expensive. According to an article on Eremedia, it can cost 30 to 50 percent of an employee's annual salary to replace a lower-level employee, but it can cost 150 to 400 percent of a mid to higher-level employee's salary. Even if the costs are much lower, this is a cost that your business does not need to bear. When you pay your employees a higher insurance agent salary and combine this with an excellent working environment, you will retain quality employees more easily. You'll keep the investment you've made in training, and you'll keep the practices and connections that employee has made. Good employees are invaluable to your business: Seek them out and try to keep them with a higher salary.

When you're building your independent insurance business, contact the American Agents Alliance. We're here to support your business development. From a deeper understanding of industry standards to networking opportunities, learn more about the many membership benefits that your agency can derive from your membership with Agents Alliance.


comments powered by Disqus

Get an E&O Quote

in 10 minutes or less with no obligation

Affordable Premiums, "A" Rated, Admitted Carrier
easy click, quote & bind in minutes
Get a quote

Categories

  • Agency Management for Insurance Agents (77)
  • E&O for Insurance Agents (115)
  • Ethical Issues for Insurance Agents (2)
  • General (31)
  • Health Insurance Issues for Insurance Agents (1)
  • Human Resources for Insurance Agents (52)
  • Insurance Agency Perpetuation Planning (8)
  • Insurance Agent Convention (23)
  • Insurance Agent Coverage Issues (11)
  • Insurance Agent Technology Issues (52)
  • Insurance Companies and Markets for Insurance Agents (43)
  • Latest News (14)
  • Legal Issues for Insurance Agents (4)
  • Life Insurance and Retirement Issues for Insurance Agents (24)
  • Local Meetings (2)
  • Press Releases (30)
  • Professional Development for Insurance Agents (34)
  • Sales & Marketing for Insurance Agents (309)
  • Social Media for Insurance Agents (105)

Latest Articles

5 Traits of Top Employers

How can your insurance company be the best? Customer service is key, and that service comes from your company culture. 

Everything You Need to Know About Wildfires & Flood Insurance

When you think about wildfires, the images that come to mind are images of roaring flames, burning trees, and firefighters doing all they can to contain the blaze. 

Digging Deeper Into Social Media Marketing

When you're working on insurance marketing, demographic data is probably your marketing strategy mainstay. How old are your clients? Where do they live?

Speed Up Your Website and Improve Customer Service

How is a website like a turtle? Hopefully, your website is defined by its strong shell and not by its extremely slow speed.

View All
Keep up to date with our free newsletter, special offers & industry events
chevron icon
Alliance United Progressive Get ITC Infinity Auto Veronicas Insurance Evolution Insurance Brokers EZLynx Omaha National Safeway Insurance Vertafore Western General
chevron icon

call us at: 866.497.9222

Facebook
Twitter
Instagram
LinkedIn

Copyright ©

2019

The American Agents Alliance

All Rights Reserved


Privacy & Terms

Site by Dirigo Design and Development, Inc.

  • Who We Are
  • Become a Member
  • Sponsors
  • E&O Insurance
  • Preferred Markets
  • Conference & Expo
  • Contact Us
  • News

Thanks!

Thank you for contacting us!

Our group will review and follow up within 72 hours.
Thanks for your interest!

Back Home

How to Run Your Agency By the Numbers

Close

Let Us Deliver Live Calls To Your Agency

Close