2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $10,000,000 AND $25,000,000

PRODUCER INFORMATION A. New Producer Hiring

EXECUTIVE PERSPECTIVES

+25% Profit

+25% Growth

Average

“A key to success has been getting all of our employees involved in talent-recruiting. It isn’t a job that can be delegated to head- hunters, or to a single employee.”

% of Agencies that Hired a New Producer During Last Fiscal Year

PROFILE

81.3% 75.0% 100.0%

Number of New Producers Hired

2.7

1.8

2.9

REVENUES/ EXPENSES

Average Annual Compensation Per New Producer

$64,875 $70,833 $64,395

FINANCIAL STABILITY

Where New Producers Were Found

Directly from college or graduate school 13.9%

Outside of Industry* 11.5%

EMPLOYEE OVERVIEW

“Successful” New Producers 67.3% of producers hired over the last 5 years have met their production goals.

An insurance carrier 19.5%

PRODUCER INFO

Another insurance broker 55.1%

SERVICE STAFF INFO

*Other industries mentioned most often include Financial, Stock Brokerage, Manufacturing, Medical/Pharmaceuticals, and Office Equipment/Furniture.

TECHNOLOGY

Future Hiring Plans

+25% Profit

+25% Growth

Average

% of Agencies that Plan to Hire a New Producer During Current Fiscal Year

INSURANCE CARRIERS

90.6% 87.5% 100.0%

Number of New Producers to be Hired

2.8

3.0

3.5

APPENDIX

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