When it comes to high turnover, insurance agencies can face costs of up to $11,000 to replace just one employee. If you’re losing more than one employee – your overhead is in trouble. The cost of turnover is extremely high especially if you’re facing mass turnover rates. Across industries, the average annual turnover rate is 19% – accounting for both voluntary and involuntary turnover.
Insurance agent turnover has become a massive problem in the industry today with about 83% of agents quitting within three years, while 30% quit within just three months. We can link turnover back to a range of possible causes but for the most part – it’s usually burnout.
Going off the hourly rate a mid-level account manager makes from our last blog – which is about $30/hour, we were able to calculate how much it would cost to replace them.
For a midrange position – someone earning between $30,000 to $50,000 a year, you would calculate 20% of their annual salary to find out their replacement cost. In this case, an employee earning $30/hour has an annual salary of approximately $57,000. By simply multiplying their annual salary by 20% you get a replacement cost of $11,400.
It costs $11,400 to replace one employee without you even realizing it. Adding those costs up, if you’re losing producers regularly, brings you to an insane amount of money you’re spending on replacing employees. That cost would include recruitment, background checks, pre-employment administrative expenses, onboarding, and training.
And who’s to say your new employee will stick around? When it comes to employee retention the strategy is always a gamble. As an agency owner what you can do however, is make smarter decisions.
We’re here to bring those smart decisions to you.
Now that we’ve shed light on how much it truly costs you to replace an employee, we’re here to shed light upon what you can do to minimize that. Retaining employees can be expensive, we understand that. That’s why we are here to take care of that for you. When you partner with Edge, we help you onboard a pre-trained, remote employee to take on your agency day-to-day tasks for a flat monthly fee. Retaining them is on us and we take it seriously. You can check out how we ensure we provide our Ambassadors with a positive work environment to ensure retention here. Moreover, you don’t need to worry about the cost of training them. We train our Ambassadors before they’re even onboarded at your agency, so that you don’t have to spend your time and resources. You can also check out how we train Edge Ambassador through the Edge Academy here.
One of the most compelling reasons to onboard an Edge Ambassador is the fact that, if for any reason you want to onboard a new Ambassador, it costs you nothing! We help you replace your Ambassador and continue paying the same monthly fee. Your 1st Ambassador would train your new one to make the transition even smoother. Now compare that to replacing an employee for $11,000 – you can already see the benefits.
A more important benefit is the fact that you’ll be able to retain your producers by onboarding an Edge Ambassador. Because your Ambassador is able to take on the busy work for your producers, they’re able to focus on building relationships without facing burnout.
This balance helps you retain your team in a more efficient way all while boosting productivity as well as saving you thousands!
While it’s quite clear you’re able to save on overhead when onboarding an Edge Ambassador, the winning factor is that when your Ambassador takes on the busy work for your producers, you’re able to retain them as well. Balancing the workload of your employees is the key to ensuring a happy, successful, and productive team and with Edge you’re able to achieve that.