It’s that time of year when we all evaluate our insurance agency’s team and plan. For many agencies, this time of year also provides the opportunity for performance reviews. As a leader I spent many years trying to avoid addressing underperforming team members, using hope as my strategy. I literally hoped a team member would wake up one day and get it. I learned frequently this wasn’t the right strategy. However, addressing the problem seemed like a daunting and uncomfortable challenge. After being a leader for two decades now, I can tell you — don’t use this strategy.
In this blog we will break down the five things you need to do to address an underperformer in a way that is professional and fair to all parties. In our next blog we will speak directly to the team member on how to take and accept this feedback professionally.
Step 1: Don’t Delay
One thing we do sometimes as leaders is overthink and underact. When something comes across our desk that doesn’t seem right, we brush it aside to handle other tasks, hoping it will go away. The problem with waiting is either the situation becomes cloudy, or it grows exponentially and quickly. Routinely and directly addressing issues is part of being a leader.
Now addressing these issues doesn’t always need to be a formal, huge ordeal. It can often be a quick 10-minute meeting. In fact, we often find the quick hits are better than the long, drawn-out ordeals. It’s more comfortable for both parties, and at the end of the day addresses issues and concerns quickly.
Step 2: Feedback Isn’t Just for Mistakes; It’s Also for Attitude
There are two things that make a great team member in insurance: teachability and attitude. When someone makes an insurance mistake, we often bring it to their attention (or the underwriter does), and it must be fixed. Attitude tends to be a bit more mysterious. It often is brought to your attention through backchannels, a.k.a. the rumor mill. While rumor mills can inflate an issue, generally, there is a problem there that needs to be addressed.
Nailing down the attitude feedback can be like nailing down jello. You don’t feel like you have evidence or a clear way to say, “Hey, you violated a rule.” Many times an underperforming team member has outside influencing factors as well, such as personal issues or just plain personality defects. Your best bet is to get an employee code of conduct that clearly outlines your expectations around attitude and how everyone treats each other. This way, as issues arise, you have the policy to pin back on.
Our challenge with attitude is that it can turn into a he said, she said. When the attitude issue is brought up, your goal as an agency leader is to address it and let the person know that this is how they are being perceived. For all of us, our perception is our version of reality, and this is more of an FYI so they can identify how their team members are perceiving them.
Step 3: Think About the Silent Victim
Yes, addressing an underperforming team member can be difficult. There are silent victims. When you are debating the who, what, when, why and where of how to address it, understand who the stakeholders are that you need to consider. Here is a series of questions we like to think through:
- How will avoiding the issue impact the team member’s future in the industry? — If we don’t address this issue, would it impact them for future raises, bonuses and promotions?
- How will avoiding the issue impact the team? — Could we lose good people? Will the team be frustrated in fixing mistakes?
- How will avoiding the issue impact the agency? — Could we have an E&O claim or get bad online reviews?
- How will avoiding the issue impact clients? — If clients are frustrated, will we lose referrals and see an increase in cancelled business?
When you break down these questions, you see quickly that the fear of confronting the issue is small compared to the impact an underperforming team member can have.
Step 4: The Confrontation Sandwich
I actually hate the word “confrontation.” To me it seems super dark and like we will strike in the middle of the night when really all you want is to provide the right employee with a teachable moment. If you practice the sandwich approach, you can win at addressing performance issues.
- Thank the team member for joining you at this meeting.
- Alert them that there are some items that have come to your attention that you wanted to share to determine how everyone as a team can improve. Hint: Pin it back to the agency, not the person.
- State the facts of what you have encountered, and ask the person what tools, training and resources you can provide so that these areas can be strengthened.
- Ask the team member what personal responsibility they see that they had in the instances.
- Indicate that you will meet with them every other week for a few weeks to help them in this area.
- End with thanking them for helping the agency improve and strengthening the team.
See how this is more of a coaching session than a “you’re a terrible human” session! It helps the person open up and be honest about their weaknesses so the agency can help them find a solution. Now, this only works when you address things quickly and routinely. When performance issues stockpile, it becomes a much different conversation. This leads us to our final item — you can’t have dozens of these conversations with no success.
Step 5: When It’s Time To Move On
From time to time these little sessions start being a routine occurrence and, well, a hindrance to the entire agency. When you have an instinct this person isn’t a fit, your next step is a performance improvement plan. A performance improvement plan is a more formal meeting that clearly outlines all the repeated issues and how they were addressed. It also is a great documentation strategy for your file. At the end of the plan it does state that if the performance doesn’t improve, this will lead to termination.
I’m a firm believer that people should know if they are at risk of being terminated. A job loss should not be a surprise. The team member should see it coming. This is the get on or off the bus moment. If they want on the bus, they take your plan seriously. If they want off the bus, they find another agency to bother. During this timeframe it’s a good idea to also start recruiting. If the person doesn’t work out or they leave, you have candidates ready to go.
Conclusion
Addressing poor performance takes time to get comfortable with. However, once some team members turn around and you see the reduction in office drama, it will motivate you to have difficult conversations. Over time those difficult conversations actually become less difficult and provide more opportunity. If you’re a little overwhelmed by this process, no worries. Contact us! Our Agency Assessment may be a great fit for your agency.
Related Blogs:
- Blog: Are You Holding On To Problem Team Member?
- Blog: Developing a High Performance Sales Culture
- Blog: What to Do When It Feels Like Your Agency Is Against You
