e-Insight November 2020 by Big I Illinois

NOVEMBER 2020

INSIGHT 2020 VIRTUAL CONVO WRAP-UP IIA of IL Award Winners Plus

Hiring and Building Your Team

Commercial | Personal | Farm-Ag | Specialty

November 2020

Editor & Graphic Design - Rachel Romines

Advertising - Tami Hubbell

CONTENTS 14

18 2020-2021

26 Cover Image Winner of the CONVO Adult Coloring Contest Shannon Churchill

11 12

2020 IIA of IL Award Winners Virtual CONVO Wrap-Up - One for the History Books By Shannon Churchill

Make Time to Think and Be Accepting of New Ideas - Lessons from Virtual CONVO Keynote

Why Now is the Time to Think About Building Your A-Team

Finding Talent for Your Agency - Strategies for Success

24 26

Your Remote Hiring Plan

By Rachel Romines

By Claudia St. John

By Jennifer Jacobs

By Sharon Emek

Mental Toughness Adds Value to the Hiring Process By Caliper

In This Issue

The Independent Insurance Agents of Illinois (IIA of IL) has been providing members with a sustainable competitive advantage since 1899.

7 8 17

Trusted Choice Industry

e-Insight

31 32 33 34

Associate News Board of Directors Profile IIA of IL News Classifieds

info@iiaofil.org | www.iiaofil.org | (800) 628-6436 or (217) 793-6660 | Fax: (217) 793-6744

2009 • 2010 • 2011 • 2012 • 2013 2014 • 2015 • 2016 • 2017 • 2019 • 2020

Insight is the official publication of the Independent Insurance Agents of Illinois (IIA of IL). The magazine is published monthly for the members of the IIA of IL, with the office located at 4360 Wabash Avenue, Springfield, Illinois 62711-7009; Consumer Website: www.ChooseIndependent.com. The IIA of IL welcomes letters discussing concerns of the insurance industry, articles, editorials, other matters of interest to the membership. The editor reserves the right to edit and select submissions for publication. Address submissions for review to Rachel Romines at rromines@iiaofil.org. For advertising information, contact Tami Hubbell at thubbell@iiaofil.org.

Board of Directors Executive Committee

Regional Directors

ADVERTISERS 30

AMERISAFE

APPLIED UNDERWRITERS

ARLINGTON/ROE

BERKSHIRE HATHAWAY GUARD INS. GROUP

DONALD GADDIS COMPANY, INC.

ENCOVA INSURANCE

ENVISION HEALTHCARE

ERIE INSURANCE GROUP

FRANKENMUTH INSURANCE

GRANGE INSURANCE

GRINNELL MUTUAL

HEMPHILL FINANCIAL GROUP/LEGALSHIELD

IMT INSURANCE

IPMG

7 Cover Tip 2

JM WILSON OMAHA NATIONAL SECURA INSURANCE

TRANSCOM GENERAL AGENCY

UNITED FIRE GROUP

WEST BEND MUTUAL INSURANCE CO.

WESTFIELD

Committee Chairs

IIA of Illinois Staff

Budget & Finance | Bennie Jones (312) 960-6200 | bjones@rmsoa.com

Director of Information and Technology Shannon Churchill - (217) 321-3004 - schurchill@iiaofil.org

Director of Government Relations Evan Manning - (217) 321-3002 - emanning@iiaofil.org

Education | Teresa Fleming, CIC, CISR (815) 849-5219 | tess@leffelmanassoc.com

Director of Education and Agency Resources Brett Gerger - (217) 321-3006 - bgerger@iiaofil.org

Office Administrator Kristi Osmond - (217) 321-3007 - kosmond@iiaofil.org

Accounting & Admin Services Tami Hubbell - (217) 321-3016 - thubbell@iiaofil.org

Director of Communications Rachel Romines - (217) 321-3024 - rromines@iiaofil.org

Director of Human Resources, Board Admin Jennifer Jacobs - (217) 321-3013 - jjacobs@iiaofil.org

Director of Membership Services Tom Ross, CRIS, CPIA - (217) 321-3003 - tross@iiaofil.org

Sr. Vice President/Chief Financial Officer Mark Kuchar - (217) 321-3015 - mkuchar@iiaofil.org

Products & Services Administrator Janet White, CISR - (217) 321-3010 - jwhite.indep12@insuremail.net

Chief Executive Officer Phil Lackman - (217) 321-3005 - plackman@iiaofil.org

Director of Prof. Liability & Ins. Products Carol Wilson, CPIA - (217) 321-3011 - cwilson.indep12@insuremail.net

Central/Southern Marketing Representative Lori Mahorney - (217) 415-7550 - lmahorney@iiaofil.org

Find us on Social Media

You’re in the business of protecting others. So, who’s watching out for you? We are. At Arlington/Roe, we put the needs of our customers first. What does that look like? Well, it looks like experience you can trust, integrity you can count on, promises we stand behind and an independent and family-owned industry partner who understands your specific needs. Located in nine states and licensed in all 50, we’ve got your back. Get to know the people of Arlington/Roe. We’ve been doing the right thing since 1964.

Let us help you find the right solutions. Managing General Agents | Wholesale Insurance Brokers

800.878.9891 | ArlingtonRoe.com

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grinnellmutual.com “Trust in Tomorrow.” and “Grinnell Mutual” are registered trademarks of Grinnell Mutual Reinsurance Company. © Grinnell Mutual Reinsurance Company, 2020.

Free to do what's right for you.SM

Trusted Choice Releases New Social Media Calendar Resource Trusted ChoiceÂŽ understands the importance and value of social media marketing. To aid agents in increasing business through social channels, Trusted ChoiceÂŽ has created a social media calendar exclusively for members. The calendar is updated every month and is available for members to access on the content-to-share page of the member resource website. The social media calendar includes ready-to-post content focused on monthly topics, some of which have been home maintenance, pet safety, natural disaster preparedness, at-home holiday activities, and much more. Members are encouraged to utilize the calendar to strengthen their social media presence and increase engagement with current and potential customers.

EVERY RISK IS AN OPPORTUNITY COMMERCIAL TRANSPORTATION | BROKERAGE | MARINE PROPERTY & CASUALTY | SURETY | PERSONAL LINES

(800) 666-5692 | JMWILSON.COM november 2020

JM Wilson 100th Insurance Insight CMYK.indd 2

4/3/20 8:17 AM7 insight

INSIGHT | industry

Third Quarter Personal Lines Composite Rate Up 5% Cat-Exposed Property Rates Face Big Increases The composite rate for personal lines continued to increase. Rates increased from plus 3.5 percent in the second quarter 2019 to plus 4.5 percent in the third quarter. Average rates for homeowners coverage for large homes over $1,000,000 in coverage A value increased the most at plus 6.5 percent. This is a notable increase and is somewhat driven by large homes in CAT prone areas such as California and Florida. Rates for homes under $1,000,000 also increased from last quarter. Rates for auto and personal articles coverages increased by one full percentage point from the third to the fourth quarter. Richard Kerr, CEO of MarketScout noted, “So far we have not been hit hard with any catastrophic losses in the second half of 2019. Had Hurricane Dorian continued on to mainland Florida as a category 4 or 5 storm, agents

By MarketScout

and brokers would really be scrambling. Even without a hit from Dorian, CAT exposed homes are suffering significant increases.” The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis of market conditions. These surveys help to further corroborate MarketScout’s actual findings, mathematically driven by new and renewal placements across the United States. A summary of the third quarter 2019 personal lines rates is set forth below.

Premium Trends by Personal Lines Third Quarter 2020 Source: MarketScout Corporation Up 5.5% Up 5%

Up 5% Up 4.5%

Homeowners under $1M

insight

Homeowners over $1M

Automobile

Personal Articles

november 2020

industry | INSIGHT

Third Quarter Composite Rate Increase 6.25% D&O and Umbrella Rates Register Largest Increase At the close of the third quarter 2020, insurance buyers were assessed rate increases on every line of coverage and industry class.

By MarketScout

The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis of market conditions. These surveys help to further corroborate MarketScout’s actual findings, mathematically driven by new and renewal placements across the United States.

Richard Kerr, CEO and Founder of MarketScout, profiled the current market environment by pointing out, “The composite rate is up 6.25 percent for the third quarter 2020 as compared to up 4.8 percent in the second quarter. Rates began adjusting upward at a quicker pace in September. We expect the fourth quarter 2020 will reflect continued aggressive rate increases in property, D&O and umbrella/ excess liability coverages.”

A summary of the third quarter 2020 rates by coverage, industry class and account size is set forth below.

D&O rates were up the most at plus 11.5 percent followed by umbrella and excess liability which registered an increase of 8.5 percent. For the first time in over five years, workers’ compensation rates were up, albeit only .5 percent but they were up.

Premium Trends by Industry Class Third Quarter 2020

Premium Trends by Account Size Third Quarter 2020

Source: MarketScout Corporation

Source: MarketScout Corporation Up 10.5%

Up 8%

Up 7%

Up 6.5%

Up 6% Up 5%

Up 4.5%

Up 4.5% Up 6%

Mfg

Services

Contracting

Habitational

Public Entity

Transportation

Energy

Up 6%

Small Up to $25,000

Medium $25,001 - $250k

Large $250,001 - $1 Million

Jumbo Over $1 Million

Premium Trends by Coverage Class Third Quarter 2020 Source: MarketScout Corporation Up 11.5%

Up 8.5% Up 8% Up 7.5% Up 7% Up 6.5% Up 5.5%

Up 5.5% Up 5%

Up 5%

Up 3.5% Up 3%

Up 0.5%

Property

november 2020

Business Interruption

BOP

Inland Marine

Umbrella/Excess

Auto

Up 0.5%

D&O

EPLI

Fiduciary

Crime

Surety

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2020 Agency of the Year

2020 Agent of the Year

Marion

Brown & Brown of IL, Naperville The Agent of the Year Award is given for the outstanding performance of an individual retail agent member of the IIA of IL in the categories of production, use of technology, professional development and civic responsibility.

The Agency of the Year Award is presented to an IIA of IL member agency that exemplifies leadership and innovation within the industry. The Agency of the Year demonstrates strong growth, innovative marketing strategies, creative utilization of evolving technology, toplevel customer service and dedication to the community.

Nick Gunn, CIC

Nixon Insurance Agency, Peoria

2020 Young Agent of the Year

IIA of Northeastern IL 2020 Outstanding Commitment to IIAPAC

Each year the IIA of IL bestows the Outstanding Commitment to IIAPAC Award to a producer, agency, or local chapter for their fundraising and advocacy efforts. The NEI Group has donated thousands of dollars to the IIAPAC this year. Thank you, Ken Samson, and everyone involved in Northeastern Illinois Group! This annual award recognizes extraordinary accomplishments by a professional under 40 years of age. The recipient must have demonstrated service to the insurance industry, professional trade associations, and community in a manner that would be considered exceptional for a person of his or her age. november 2020

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Event Wrap-Up One for the History Books! Three Days 23 Hours of Content Over 430 People 17 Sessions 12 Hours of IL Continuing Education Hours 17 Sponsors 36 Exhibitors 30 Speakers All in ONE Virtual Event! What a whirlwind few months it has been! When the decision was made to switch from an in-person CONVO to a virtual setting, the IIA of IL staff dove right into planning. How can we make this happen in such a short time? How can we make this an event for everyone? What traditions can we incorporate from the in-person event? Well… we did it! The IIA of IL staff pulled it off! We had such a successful event October 6-8, attendees are still talking about it. But don’t just take our word for it… In addition to several attendees telling us “great session” and “extremely valuable information,” we also heard: “The entire event went very well in my opinion! You turned our 2020 lemons into Lemonade!” “WOW!! Extremely impressive Convention this year! I am so grateful to be associated with such unbelievable talent. You took a challenging situation and not only made the best of it……You made it a SUCCESS!” “I want to thank IIAI for going to the extra effort and expense to have a convention this year. I think all of us prefer an actual event over a virtual event but you have created an opportunity for interaction, information, and education.” “Thank you for putting on an awesome event last week- we really enjoyed the virtual trade show!” “He (speaking of Duncan Wardle) was fantastic!” “This session was great for someone who wants to innovate and grow – makes you think about the future!” Speaking of Keynote 2: Creating Opportunities Out of COVID All sessions were recorded and are now available ondemand at www.ilconvention.com. Attendees can login and view the sessions at no additional charge. Those that did not attend can purchase the event for $149. No CE is awarded for the recorded sessions. 12

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By Shannon Churchill

Here is what you may have missed: The opening keynote presentation with former Disney Head of Creativity and Innovation, Duncan Wardle, focused on the personal dynamic of insurance relationships and encouraged us to bring innovation and creativity into the workplace. Check out the article on the next page for a recap of this session. Our second keynote session brought together several of the most innovative agents in the industry including Katlyn Eggar with Quantum Assurance International and host of The Age of Independence Mini-Series Podcast; David Carothers of Florida Risk Partners and The Power Producers Podcast; Carey Wallace, CEO of IntellAgents; Bradley Flowers of Portal Insurance and The Insurance Guys Podcast, as well as the host with the most, Ryan Hanley, owner of Rogue Risk and host of The Ryan Hanley Show Podcast. In this dynamic game-show style session, between laughter, entertainment and poking fun of each other, the group discussed many of the challenges insurance agencies are facing today, ways to stay relevant in an ever changing marketplace, and how to create opportunities out of COVID. Our closing keynote session with Carey Wallace, CEO of IntellAgents, and Trent Richmond, Founder of AgencyKPI, walked attendees through looking beyond “data as a buzz word” and how it can empower you and your agency to make decisions. Our two legislative sessions featured Charles Symington and Nathan Riedel of the Big “I” Government Affairs team, sharing the current state of affairs at the federal level. Our own Evan Manning, Phil Lackman and Brett Gerger discussed Illinois legislative updates over the past year and gave an update on the November elections and what the future may hold. Breakout sessions over the two days included current relevant topics led by many leading industry experts. • Insuring Cannabis Risks in 2020: The Challenges in a Growing Industry with Rick Pitts • Business Income Coverage: COVID & Beyond with Chris Boggs • Finding Talent for your Agency - Strategies for Success Panel with Claudia St. John, J’ai Brown, Mark and Christine Bailey • Increasing Sales Through Effective Communication Using Sales Impact Assessments to Tailor Your Message with Steve Bellman, Brett Gerger & Tess Fleming • Innovation in Long-Term Care Funding with Life Insurance with Jerry Rhinehart • Cautionary Tales of the Creative Client During COVID – Home with Nicole Broch

november 2020

• Supercharge Your Agency Website with Sales Tools with Spencer Breidenbach • The Genesis of Cyber – and Resources for YOU with Ron Berg, George Robertson and Bill Larson • Cautionary Tales of the Creative Client During COVID – Auto with Nicole Broch • Everyone Has An Online Reputation - Take Control And Protect Yours with Spencer Breidenbach • Workers’ Compensation Issues 2020 with Luke Praxmarer and Brett Gerger Thank you to all those who attended. We’d love to hear your feedback on the event. Send me an email at schurchill@iiaofil.org to give me your review.

For those who missed out, it is not too late. You can obtain the recordings of this event (no CE) for the low price of $149. This gets you all the recordings available so you can share the information with your team. Since they are on-demand, you can watch whenever, wherever you’d like.

Make sure to mark your calendar for the 2021 CONVO: October 5-7 in Springfield, IL. Shannon Churchill is the IIA of IL CONVO Coordinator as well as the Director of Information and Technology. She can be reached at schurchill@iiaofil.org or (217) 321-3004.

THANK YOU TO OUR SPONSORS Diamond: Pekin Insurance The Hanover Insurance Group Platinum: Progressive Surplus Line Association of Illinois Gold: AAA Insurance Arlington/Roe

Silver: Grinnell Mutual Imperial PFS IMT Insurance Nationwide West Bend Mutual Insurance Company General: Applied Systems Brightfire Agents Council for Technology – ACT Big “I” Virtual University Trusted Choice Affinity HR

THANK YOU TO OUR EXHIBITORS AFCO Credit Corp. AAA – The Auto Club Group AIS Premium Finance/Imperial PFS Alexander J. Wayne and Associates American Reliable Agribusiness & Equine Mortality AMERISAFE Arlington/Roe ARMtech Insurance Services Columbia Insurance Group Continental Western Group Donegal Insurance Group Encova Insurance ePayPolicy Erie Insurance Foremost Insurance Group Grange Insurance Grinnell Mutual The Hanover Insurance Group HawkSoft november 2020

HSB IMT Insurance J.C. Restoration, Inc. JM Wilson – MGA and E&S Broker Markel Midwest Insurance Company Networked Insurance Agents Pekin Insurance Progressive SECURA Tapco Underwriters, Inc. Travelers Utica National Insurance Group W.A. Schickedanz Agency, Inc./Interstate Risk Placement, Inc. West Bend Mutual Insurance Company Westfield Zywave, Inc.

insight

Keynote Wrap-Up Make Time to Think and Be Accepting of New Ideas By Rachel Romines Duncan Wardle opened Virtual CONVO 2020 with a presentation I, personally, will not forget. Having spent 30 years with the Walt Disney Company, Wardle started as a barman at Rose and Crown Pub at Epcot. Moving into various positions with Disney, twenty years into his career, he was charged with the role of “Innovation and Creativity.” Wardle had no idea what that was or what it entailed, but for 10 years, he learned, listened, innovated, and created. After introducing himself, Wardle asked attendees what the biggest barriers to being innovative at work were. What would your answer be? Here are the attendee’s answers: Top barrier: no time to think. He went into detail on this a bit later in the presentation. Second barrier: we’re risk-averse. Being risk-averse will continue to be a barrier, like it has for 100 years, as Wall Street continues to dominate the way we do business. But… Wall Street dominating is coming to an end with Generation Z. As Wardle explained it, Gen Z cares more about purpose than profit. Not only will they not want to buy your products and services if they don’t believe in what you stand for, they won’t want to work for you either. How will you be relevant 10 years from now if a generation of new employees choose not to work for you because they don’t believe in what you stand for? But why is purpose so important? Wardle taught us that it is not necessarily philanthropic. It’s more about what you stand for and what you believe in. We should each be asking ourselves these questions: Why would someone want to be my client? Why would someone want to work for me? Wardle gave a perfect example of purpose, explaining to viewers that he recently spoke for the world’s largest tool manufacturer. In preparing for his speech, he studied consumers at the hardware store. What he found out was that people didn’t come to the store to buy tools. They came to build or fix. That was their purpose for entering the store. Not one consumer went in saying, “I’m buying this brand of hammer, and I’m paying this price.” They came in to find tools to assist with their purpose – building or fixing something. So that’s what he told his audience at that conference. Don’t figure out new ways to sell your tools. Figure out ways to help people build or fix things. Don’t sell a hammer. Sell the children’s playhouse they are building. While watching Wardle’s session, I thought, “Insurance agents are not selling something tangible.” So, I paused my recording and thought deeply about this. It clicked. Insurance agents are selling peace of mind. Their purpose 14

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is to make their clients feel safe, feel like they have something to fall back on in times of distress. The agent’s job is to make their client understand this – to make them recognize they are buying peace of mind, not just a policy. But on with the presentation… Duncan showed the following quote: “The habit of continually doing things in new ways to make a positive difference in our working lives.” He then asked what word stuck out the most. Viewers responded with “habit.” Nailed it. Wardle stated that “Creativity is a muscle; the more you use it, the stronger it gets.” No matter your age, you can always learn NEW habits. Creativity and innovation may feel awkward... but it should! It’s something new to you, and you are unsure of the results you will get. But, it could lead to something big! Don’t be scared of “That’s not the way we do it.” Going back to the top barrier at work, Wardle polled the audience to find out when and where they do their best thinking and when the best ideas come to mind. The top two answers were “while commuting” and “while showering.” The bottom answer was, wait for it… at work. Your best work ideas do not happen while at work. Say what? I equate it to the “heat of the moment.” Wardle’s example was an argument. During the argument, in the heat of the moment, your brain is spinning and only thinking about those seconds in the moment. But five minutes after the argument is over, you start really thinking about it – what you should have said, what you shouldn’t have said. You understand what they meant, etc. So, transferring this thought to the office, during work hours, you are constantly in the heat of the moment: phone calls, emails, policy revisions, and more. You have work in front of you that needs to be done, and there is no time for any extra creative thinking!

Rivers of Thinking: Your Knowledge, Expertise, and Experience. The longer you’re in business, the more you know why ideas won’t work. Your own “River of Thinking,” as Wardle calls it, may allow you to make quicker decisions, but we are being challenged to get out of our own river… branch out, disrupt, and change the way we think. One solution may be diversity. Wardle said, “Diversity is innovation. If someone doesn’t look like you, they don’t think like you, and they can help you think differently.” He encouraged viewers to seek out people that do not look like us or have different experiences than us and invite them to our next thinking session. What if you asked your college-age son or daughter to brainstorm with you? Can you imagine how many different ideas they would have that you would have never thought of? Or, if you typically work with the ‘man of the house’ for a particular policy, november 2020

how about reaching out to the ‘woman of the house.’ Will she look at things differently than the man? Wardle gave a perfect example with technology. Veteran agents typically see things the same way – in their own river of thinking. But bring in a young agent who knows technology, and they could make you see things in a completely different way. What if they could streamline your processes using technology? But if you never bring them to the table, you will never know that. Or how about your CSR that is in the weeds of policies and working with clients day in and day out? They are the ones talking to your clients. They hear their complaints, praises, needs, and wants. Are you bringing them to the table? “Diversity is innovation.” Something that stuck out to me was the example Wardle gave of Disney, and how they title their employees and customers. Disney does not have customers in its theme parks; they have guests. They do not have employees; they have cast members. In agency office terms, do you have a staff, or do you have a team? It’s little things like this that can make a BIG difference in how you are making people feel. The same way of thinking can be used to make more money. Instead of inflating theme park ticket prices or hotel room costs (which, let’s be honest, happens), Disney stopped asking how they can make more money. They instead asked how they can erase pain points for their guests. When Disney started focusing on that, it led to

november 2020

happier guests with more time to spare at the parks. That, in turn, led to more money. Disney is consumer-centric. If you ask, “How might I make more money,” you are product-centric. “The opposite of bravery is not cowardice, it’s conformity.” – Robert Anthony Typically, the only time a client reaches out to their agent is when there is something wrong. What if you reached out just to check in, just to see how they are, especially during this pandemic? You may not be able to actually DO anything for them. But, it’s a nice gesture to check in. You may even receive a complaint (i.e. I didn’t get a discount when I stopped commuting to work!), but this is your opportunity to gain their trust. “Let’s get you some quotes from some of the other carriers.”

Questions from Attendees During Q&A, Wardle had several valuable pieces of advice. What is something we could do as an office or a group to be more innovative and creative? Wardle: 1. Go for a walk. Give yourself time to think. 2. When someone has a new idea, don’t let the first words out of your mouth be “No, because…” Remind yourself continued...

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that when the idea is presented to you, it’s not presented for execution at that moment. It is presented to you to brainstorm on that idea. Wardle encourages you to say, “Yes, and…” more. What is it about buying insurance that you don’t like? Wardle: “Nobody cares.” He went on to say that it is so important to have the human touch with clients and prospects. We know everything is going digital these days. But it means a lot to consumers to feel human interaction. Consider picking up the phone and just ask how they are doing, even if you aren’t offering anything. This simple interaction goes a long way with your customers. What is one thing an agency could do to get more engaged in the community? Wardle’s surprising answer: Crowdsource. He explained that instead of you and your staff coming up with ideas, invite your community to come in and build it with you. Have your community come together, put them in breakout rooms or separate tables, and allow one person to talk at a time. This person talks about issues that bother them, problems they need help solving. The other people in the room or at the table may not be able to help that person, but most of the time, they know someone that CAN help. This positions your agency as a community leader, someone who lends a helping hand by bringing everyone together. Why did you leave Disney? We all hear, “You must innovate; you must be creative.” But how? Wardle left Disney because he wanted to create

a toolkit that people can use that makes innovation easy, creativity tangible, and the process fun. How would you draw an insurance agent’s face during a pandemic? Since Wardle focused on drawings during his presentation as a way to help with the learning process, an attendee asked him how he would draw “an insurance face in the middle of a pandemic.” Wardle’s response was, “You would want me to draw a heart. Because that means I trust you.” Mind=Blown. My mind immediately went to the emoji with the “oh no!” face. But when Wardle said a heart, he’s right! We want our consumers to trust us. To know that even in a pandemic, we want what is best for them. President George Daly wrapped up the session with these words of advice, “Everybody needs to challenge themselves: What if? How else can we do things? How can we stay connected to consumers, to our lifeblood? Duncan has given us some great tools to follow through on. Let’s do it! Let’s change. Let’s roll up our sleeves and figure out new ways to do things.“ If Duncan Wardle’s session inspired you and you are implementing some of his ideas, I want to know! What did you learn from this session? What changes are you making to be the best agency and agent you can be? Please email me at rromines@iiaofil.org and let me know. Rachel Romines is the Director of Communications for the IIA of IL. She can be reached at rromines@iiaofil.org or (217) 321-3024.

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AUTO | HOME | BUSINESS

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Gen Z employees are learning the skills and gaining the knowledge to help insurers fill a wide variety of open jobs. By Gary P. Sullivan, CPCU - PropertyCasualty360 In this monthâ&#x20AC;&#x2122;s e-Insight. november 2020

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By Claudia St. John

As businesses begin to open their doors after the COVID-19 shutdown orders, many are thinking about not only where their business is heading but what people they need to get there. At Affinity HR Group, many of our clients have been making hard decisions about retaining staff in a down market. The decision to let employees go is never an easy one, and to do so in such an uncertain time is difficult. I have yet to meet a business owner who is not emotionally impacted by the staffing decisions they face. We’ve also seen clients recognize that with great turbulence comes the opportunity to correct problems that may be lingering within their organizations. On one recent industry video call, a business owner asked, “How many of you have discovered the weak links in your company since the pandemic hit? You know who’s not cutting it, don’t you?” Virtually every owner was able to see with great clarity who are their rock stars and who are their weak links. The consensus among those in attendance was that this is the right time to make strategic staffing decisions to build the right team to move their businesses forward during recovery. Here are four tips to get the ball rolling:

1. Define what you need. It is difficult to think

strategically when operating in crisis mode. Workplace interruptions and the push for remote work have realigned not just what employers do but how they do it. The lessons learned during this time may point to a new direction for your company as you work to minimize market or organizational threats and maximize and prepare for future opportunities. As you contemplate that realignment, defining what you need from your people to move forward is essential. That may require re-tooling and developing the skills and capabilities of your current employees. Perhaps it will require letting go of some staff who lack the competencies or behaviors that you will need. And perhaps it will require hiring different talent for what your new future requires. Now is the time to think critically about what and who you will need on your team. You may not have the financial certainty at this point to hire new talent, but by defining what you will need today, you can start the process of creating space and structure for that talent. Doing so means that when you can afford to hire, you’ll be clear on what you’re looking for.

We anticipate that current market disruptions mean that, for the first time in many years, there is going to be a large pool of highly-qualified talent available that was not available pre-pandemic - talent that may be open to entertaining new opportunities who may not have felt that way two months ago. Once you’ve determined what you need, don’t wait to start looking. Even in this market, quality talent is still challenging to find and takes time.

3. Use technology. Despite recent efforts to ease up

mandated stay-in-place orders, most indicators point to the continued need to socially distance for the months and perhaps year ahead. With new-found experience managing a remote workforce, many companies now have the tools and mindset to be able to identify, hire and manage remote employees. With geography being less important than before COVID-19, your pool of potential candidates exponentially increases. Now is the time to start embracing video interviewing. Many platforms make it easy to meet and manage your employees face-to-face without leaving your home or office. We believe the new normal will find many companies using expanded technology for both video interviewing and managing ongoing performance as a standard practice for some, if not all, of their open positions.

4. Make offers, even if you’re not quite ready. You can lock in A-team players now with the understanding that onboarding may look a little different and may be slightly postponed. Consider offering delayed start dates, sign-on bonuses for delayed starts, and remote work or online training.

Things are uncertain for everyone, so candidates will be understanding of extended onboarding timelines. By getting commitment on both sides of the table, there’s less risk of losing them to another offer. At Affinity HR, we have worked with many employers as they navigate these difficult times. The uncertainty and unpredictability of the current economy is felt by literally all our clients. But there are silver linings - and today is the perfect day to take advantage of them. Claudia St. John is president of Affinity HR Group, Inc., Big “I” Hires’ affiliated human resources partner. Affinity HR Group specializes in providing human resources assistance to associations such as Big “I” Hires and their member companies.

2. Fill your funnel early. Under the best of

circumstances, finding and hiring the best talent takes time. Over the past few years, Affinity’s average fill time has remained 45-60 days, and that was during times of historically low unemployment rates. With economic disruption and unemployment at record highs, we don’t know what the fill time rate will be going forward, but there is a silver lining: In recent years, many employers have felt the need to hire substandard talent to fill critical positions because there was simply not enough talent available with the skills necessary to perform at the level needed. november 2020

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Finding Talent for Your Agency Strategies for Success

By Jennifer Jacobs Finding and hiring the right employees was already a challenge and COVID-19 has made that process even more difficult in this era of social distancing and working remotely. Claudia St. John of Affinity HR Group moderated a discussion during the IIA of IL Virtual CONVO between J’ai Brown, HR Director at Hub International in Chicago and Mark and Christine Bailey, Co-Owners of Bailey Family Insurance in Springfield, who shared their unique perspectives on hiring in the insurance industry. When asked where they are finding talent, J’ai Brown shared that she has joined LinkedIn groups for specific organizations and associations to help build relationships among the target audiences. Christine Bailey added that prospecting on LinkedIn can help agencies home in on graduates of local colleges and other candidates within your community. While they do find LinkedIn a useful tool, Mark and Christine Bailey had more success with a job posting on Facebook. The Bailey’s produced a recruitment video, using just an iPhone camera and microphone, according to Mark. Culture plays a huge role at Bailey Family Insurance and Christine said they looped in the whole team when making the video so employees could share why they enjoy working at the agency to help convey the culture to prospective candidates. To ensure candidates will fit well with the existing team, current employees have been included in parts of the interview and onboarding process.

november 2020

Employee referral programs have been successful at HUB where they provide a financial incentive for employees that bring in qualified candidates and an added incentive if the recommended individual makes it through the first round of interviews as well. A final referral incentive is paid when the new hire has completed a specified period of service. J’ai said that at HUB they encourage their existing employees to serve as a “talent scout” always looking for ideal candidates. Employees are encouraged to share their stories about why they value the organization and the benefits they find appealing. The motivation for referrals is twofold, according to J’ai because employees like to work with good people that they know and they value the financial incentives as well. As a larger agency, HUB is often filling roles from unlicensed individuals to producers and another way J’ai finds talent is by keeping a record of former qualified applicants in order to build a pipeline of prospect for positions that are filled often and could have an opening in the future. When it comes to the type of candidates they are looking to hire, Bailey Family Insurance is not focused on hiring for experience. Too often, agencies want someone who is experienced and can hit the ground running, but those candidates are harder to find. Mark and Christine focus on hiring for attitude, personality and potential sales ability. Mark emphasized that there are tools and training resources available to teach processes and the carriers should have support to help train new employees on how to use their systems. On hiring inexperienced employees, Mark said he likes to see a new team member grow from the ground up and the agency can train them the “right” way to do things. continued... insight

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J’ai is looking to fill positions with a wide range of experience. HUB has recently launched an exposure program for junior-level positions and for those looking to pivot to insurance, when aims to educate those who aren’t familiar with the industry on careers in insurance. The program, which went virtual due to COVID, features employees from a variety of positions within the organization who share information about the position and the skills and personality that are a good fit for those positions. One of the challenges, J’ai said, is overcoming the stigma that insurance isn’t that attractive as a career option. Mark also said that he has found people aren’t interested in a “sales” career and he would like to see independent agents sharing their story more often and educating the public on how insurance can change lives when clients are sold the proper protection.

Claudia is a big proponent of company SWAG and recommended that employees get some type of branded apparel, business cards and other logo items, especially if they are being onboarded remotely to make them feel more connected to the team. She also encouraged agencies to consider the way in which remote work can open up the possibility of hiring qualified candidates that are outside of your local community. Jennifer Jacobs is the Director of Human Resources for the IIA of IL. She can be reached at jjacobs@iiaofil.org or (217) 321-3013.

On the topic of how candidates have changed in recent years, Mark shared that he has noticed a change in the communication the agency receives from the candidates. While the norm used to be for candidates to send a follow up note of thanks or ask questions that they didn’t think of during the interview process, he finds these communications are happening less and less. Communication is a transferrable skill and is important no matter the role, according to J’ai. She noted that every generation is in the workplace now and there is a learning curve on all sides. She stressed the importance of having uncomfortable conversations around expectations for communication, dress code and any other business REASONS culture issues that may need to be shared.

In closing, the group discussed how COVID-19 impacted their processes. Both Christine and J’ai shared that the first interview is a phone screening and then they proceed with virtual interviews conducted via web meeting such as Microsoft Teams, Zoom, Google Hangout, etc. These virtual meetings take the place of those in-person interviews that had been the norm. When a face-toface meeting is deemed necessary and acceptable to employees and candidates, both agencies have social distancing procedures. J’ai also shared that onboarding is done virtually at HUB now which has been more convenient than before when branch employees traveled to the main office for part of the onboarding process. The company also utilizes a panel of Executive and Leadership Team members to educate new employees and the pivot to virtual has widened the network of individuals that can participate from across the organization in these onboarding and networking sessions.

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Your Remote Hiring Plan In-house hiring practices donâ&#x20AC;&#x2122;t often translate to hiring employees that will work remotely. What modifications do you need to make to your hiring process?

By Sharon Emek, Ph.D., CIC By all accounts, the pandemic-related work-from-home business model is here to stay, at least for the time being. For the most part, many companies were able to transition quickly, albeit not without some significant challenges. Yet now another significant challenge is looming: how to hire employees you may not meet in person, either during the course of the pandemic or for the duration of their employment with your company. For the insurance industry, that challenge is multiplied by a shortage of viable candidates. Veteran insurance professionals are retiring at an alarming rate. The Bureau of Labor Statistics estimated that between 2016 and 2020, 400,000 insurance professionals will head off to retirement. The situation is made more dire by the fact that millennials are showing little interest in insurance industry careers. According to The Millennial Survey conducted by The Hartford, a mere 4% of millennials would consider an insurance industry career.

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Yet the very pandemic that has challenged insurers to adopt remote work strategies may be somewhat of a saving grace in the quest to find remote workers. According to World Economic Forum data, 85% of millennials are seeking full-time remote work opportunities. Whatâ&#x20AC;&#x2122;s more, 82% expressed higher company loyalty to those companies with remote work programs. In fact, remote work is appealing across a wider age demographic than just millennials; a recent Zapiercommissioned Harris Poll reveals that 95% of all knowledge workers (those working in a professional setting and using a computer as part of the job) want to work remotely. That means companies that were forced to shift to a remote work arrangement are now facing the very real challenge of trying to build a remote hiring process. No matter how big or small your agency is, remote hiring takes planning. But if executed properly, your hiring process could do more than just help you hire good talent â&#x20AC;&#x201C; it can elevate the number of candidates to choose from, and deliver candidates that have the exact skills needed.

november 2020

But First, Soft Skills Yet your new hires need a few more traits than a standard in-house hire. Because remote work can be isolating, employees need the right set of traits to be able to perform effectively and productively. Before you hire, make sure to understand common soft skills that make for a successful remote worker. Your next remote employee should to be able to work with minimal supervision. Ideally, your remote worker should be able to manage time effectively so that daily tasks as well as projects are completed on time. To do that, your employee should demonstrate the ability to solve common issues as well as some of the more complex challenges that they may face. And your employee should be comfortable with remote communication tools and methods.

Interviewing from a Distance Any organization that has worked remotely recently knows the need for video conferencing. That same technology is what’s needed to conduct remote interviews. While phone interviews can work for initial screening, they fail to pick up on physical cues, such as body language and facial expressions. Plus, video conferencing is a way to vet those candidates on their comfort level with technology your company uses. That comfort with technology should extend to all technology your company employs. How familiar is the candidate with those tools? Have they shown proficiency in related technologies? In some cases, technology can be similar, so that the learning curve for your particular application would not be prohibitive. What could be problematic is your candidate’s ability to maintain connectivity with your team. Spotty internet may not be a deal-breaker unless your team needs to be able to connect quickly during office hours. By conducting a distance interview, you can assess the quality of the connection. You can assess also how conducive the candidate’s available workspace is to the tasks at hand. For instance, if you’re hiring a salesperson, having a noisy location or too many people in the residence could hinder the salesperson’s ability to connect with prospects. Your ideal candidate should have a distraction-free location, or a plan for keeping it quiet and distraction-free during work hours. That last point can be difficult to navigate. As many families are home with young children and daycares are closed, your ideal candidate may have temporary distractions. If that’s the case, shift the questioning a bit: Would your candidate be able to put in hours after children are in bed or napping? Would a more flexible work schedule help them complete the work necessary?

Identifying the Self-Starters Another question to consider: How much training will your new hire need? Every organization has a unique set of processes, and new employees need to learn them.

november 2020

However, in a remote position, that means your new hire needs to be able to train on their own with minimal supervision. To ensure they can, find out how they best learn: in-class instruction or independent, self-paced learning? Have they completed any self-guided learning before? What were the results? How easily can they get used to new systems or technology? What challenges them most about technology? That matters because in remote work, technology is key to getting the job done. And by asking these questions at the outset, you can set expectations for your candidates so that they know what is expected of them.

Hired: Now What? That’s important too after the candidate is hired. We recommend using the hiring process to outline both your expectations and how you will measure their performance. One suggestion we ask you to consider is dropping an hourly expectation and replacing it with a per-outcome expectation. As mentioned previously, not all candidates can do their best work during traditional nine-to-five hours. By measuring your new hires, as well as all your employees, by benchmarks met and project outcomes, you will get a true measure of their productivity. Moreover, such a move boosts employee morale and motivation. In an environment in which employers and employees alike are trying to carve out the best way to conduct business, adopting a more flexible employee management style makes the most sense, and helps workers succeed in a remote setting.

Hired, Retained That success results in higher employee satisfaction, which translates into better employee retention. In a global workforce environment that is adapting to what could be permanent changes to business, your business has a great opportunity to grow and to thrive. A strong remote hiring process, complete with vetting for soft skills, setting expectations, and outlining new management strategies can help your organization gain an advantage of those organizations that are still trying to do everything through the traditional business lens. By setting your remote business on the right path at hiring time, your organization can adapt quickly to whatever changes may come in the future. That flexibility can keep your entire organization moving into a stronger, more resilient future. Sharon Emek, Ph.D., CIC, is founder and CEO of Work At Home Vintage Experts (WAHVE). WAHVE (www.wahve. com) is an innovative contract talent solution that matches retiring, experienced insurance, accounting and human resource career professionals with a company’s talent needs. WAHVE bridges the gap between an employer’s need for highly skilled professional talent and seasoned professionals desiring to extending their career working from home. From screening to placement, WAHVE is a comprehensive solution to qualifying, hiring, and managing experienced remote talent.

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By Caliper

While there’s no test to target mental toughness in your candidates, there are key characteristics and skills to look for during the hiring process. By catering your interviews and questions to certain habits, you can start to suss out those candidates who may have mental toughness. Here are a few ways to focus your questions to gauge mental toughness: Ask them about the way they communicate. Communication is key when working independently, and those who have mental toughness are well-organized and informed. Those willing to have regular one-toone conversations demonstrate that they are prepared and ready to talk about their work. Staying informed is important to what they’re doing, and they understand that keeping their managers informed is equally important. This also provides them ample opportunity to articulate and break down any barriers they’re facing. Ask them how they stay focused. Individuals with mental toughness know that maintaining focus is key to achieving their goals. Talk to your candidates to better understand what they do to selfmanage and stay organized so that they’re able to maintain their motivation and follow through on their tasks. Without mental toughness, candidates may struggle to come up with tried and true methods to remain focused without someone checking in on them. Look for proactive answers over reactive answers. Ask them about their process. Mentally tough individuals are thorough and structured. Athletes often have rituals they repeat over and over, and 26

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in a professional setting, that can often translate to having a refined, repeatable process that they’ve found works well for them on a reliable basis. Ask them about how they measure their success, and how they structure their workflow and processes around the lessons they’ve learned from their successes and failures. Ask them about how they listen. Mental toughness means an individual has a lot of internal strength and fortitude, but they usually get there by listening carefully to feedback and paying attention to the needs of their teammates, coaches, or nuances of the game. In the sales field, a mentally tough person will not only listen carefully to the feedback from their managers and peers, but they also understand the value of active listening to their prospects. They’ll want to get deep insights into the problem so that they can better understand the solution. Ask them about their follow-through. Mentally tough salespeople take pride in their work and are thorough from start to finish. They understand that deals can fall through at any time, and don’t leave any loose ends. Ask candidates how they wrap up a deal, and what their closing processes are like. Someone who hands off the contract and moves onto the next deal might miss a few key interactions without someone double-checking their work.

Finding Energy to Succeed From Home Another key aspect of mental toughness that can be uncovered during the hiring process, is learning more about the way the candidates find the energy and persistence to stay motivated while working away from the office. Not only do they need to be self-driven, but they november 2020

have to be able to talk themselves through disappointment when there isn’t a coworker there to provide a pep talk. Things you can ask your candidates to gauge the way they self-motivate include: • What kinds of shorthand or efficiency tricks have you discovered in the way you work? • How do you know when it’s time to take a break, and what do you do to re-energize? • What’s your motivator that keeps you going even when you’re tired or discouraged? How did you find it? • What do you do to maintain balance between your work and personal life to avoid burnout? • Tell me about the relationships you build with clients and how they help you close deals?

Caliper is a global employee assessment and talent development company that has worked with Fortune 500 companies, governmental agencies, and non-profit organizations to help them align their talent with strategy, hire better people faster, and develop leaders, teams, and mission-critical employees. This article originally appeared in the Caliper blog: https:// calipercorp.com/blog/mental-toughness-adds-value-hiringprocess/

The more your candidates know about themselves and their processes, the stronger the indication that they possess mental toughness. They’ve reflected on their needs, their successes, their failures, and their relationships with others that help or hinder their success. Being able to talk through such introspective topics can give interviewers meaningful insights into the potential performance of the candidate.

Because you believe in your gut-feeling. Because you believe that you can make a difference.

Because you believe you are meant to do something more.

We believe in you.

COR-574 COR ADV - We Believe - IIA of IL.indd november 2020

10/2/20 12:01 insight 27PM

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e-Insight November 2020

Articles inside

Your Remote Hiring Plan

Make Time to Think and Be Accepting of New Ideas - Lessons from Virtual CONVO Keynote

Why Now is the Time to Think About Building Your A-Team

Finding Talent for Your Agency -Strategies for Success

Virtual CONVO Wrap-Up - One for the History Books