7 Ways Top Agencies Leverage Culture to Fight Turnover Problems

7 Ways Top Agencies Leverage Culture to Fight Turnover Problems

The success of an agency is measured not only by profits and topline growth, but also in how the employees of the agency feel about the company. In recent years “culture” has become a buzz word in the business world, but this does not make it any less critical. Thriving insurance agencies recognize the value of a positive culture and take a proactive approach to create an attractive environment while continuing to drive financial success.  To these organizations, culture goes beyond a mission statement that employees have memorized or something that is called upon when it is convenient. It is core values tied to specific behaviors that everyone in the organization knows, understands, believes, and lives out in their day-to-day interactions.  

Work is a significant part of life, so creating a work environment that fosters a sense of community and belonging is a major benefit. Neglecting culture has serious consequences including the expense of staff turnover.  On the other hand, when culture is an area of focus, it will help a company maintain current employees and attract top talent. Building a positive company culture can be challenging and requires time and dedication. Still, this article will provide some practical steps that you can take to start creating an agency that employees want to be a part of.  

Regularly express affirmation and appreciation for their team members

Employees need to know that employers and leaders see them as people and not as a number. They need to know that their role within a company is valued and that the work they do is essential and appreciated. This applies to companies of all sizes. Consistent messaging that portrays this from leadership down to all levels of the organization helps build that sense of value and trust between employees and the employer. 

Take time to get to know your employees. As organizations grow, this can become increasingly difficult, but a system that creates a more personalized work experience is important. This can be done in simple ways with employee onboarding surveys, birthday and anniversary messages, and recognition of other personal and professional achievements.

Provide an emotionally safe work environment

This means employees feel confident in their employer and where they belong in the organization. They are comfortable asking for help when they need it and admitting when they make a mistake because they feel cared for. They see their employer as an advocate that is there to support them even when things don’t go as planned. 

Unsafe work environments, on the other hand, create a sense of fear for individuals and force people to struggle in silence. Employees become more concerned with looking like they have all the answers and resist raising their hands and asking for help. They are worried that mistakes mean consequences and disciplinary action. This creates a stressful work environment for the employee, which cannot be sustained long term. 

“[Work-life balance] has nothing to do with the hours we work or the stress we suffer. It has to do with where we feel safe. If we feel safe at home, but we don’t feel safe at work, then we will suffer what we perceive to be a work-life imbalance.” 

Recognize that work is just one piece of an employee’s life. At any given time, an employee may be facing challenges you know nothing about. It may impact their relationships and interactions with co-workers. It may affect the quality of work. When a leader notices a deterioration in behavior or the quality of work, it is crucial to address these issues. However, opening the conversation attacking their behavior or performance without first attempting to understand will most likely provoke an employee to get defensive or shut down altogether. Instead, it is vital to approach the employee with compassion and empathy. They may not be willing to open up and provide specifics, but letting them know that you are there because you are concerned will help create a sense of ease for the employee and maintain positive communication.

Call employees to greatness and coach them through tough conversations.

It may feel uncomfortable to address performance or behavior issues with an employee.  This may be due to an inadequate skillset or just a general unwillingness to confront challenging situations.  However, the real discomfort comes when the problem is avoided altogether. What may have started out as a small incident can grow into a chronic and systemic issue if not addressed immediately. 

Lean into that discomfort – everyone is better off for it in the end. When you are willing to move through that discomfort and display vulnerability, great things happen. It’s an opportunity to address behavior, demonstrate empathy, build on your confrontation skills, and develop better communication strategies.

“Daring leaders who live into their values are never silent about hard things.”

 – Brene Brown, PHD LMSW, Dare to Lead

Provide a framework for accountability at all levels

This means that everyone is accountable to the company and its members as well as the established core values and behaviors. No one has exempt status or receives special treatment. A well-built system of accountability is the foundation for creating trust in an organization. It will also provide a way for individuals to develop better communication and problem-solving skills in the long run. Knowing that everyone is being held to the same standard and playing by the same rules creates clarity for employees.  

“Leaders must stop negotiating the non-negotiables.”

– Cy Wakeman, Founder of Reality-Based Leadership

Engage employees through consistent communication regarding both successes and setbacks

As an organization grows, this one thing can become increasingly more challenging. The day to day operations can become all-consuming, and the tendency is to wait for “big news” rather than providing a constant feed of information. However, more is more, and humans are curious. If information is not provided from the right source, the door is left wide open for wild gossip running rampant from the rumor mill, which leads to inaccuracies coming before the facts, not the least of which is lost productivity. 

Influential leaders provide continuous and current information on what is going on with the company, regular updates on company metrics and performance, goal status, upcoming changes, etc. They display a level of transparency where employees do not feel like information is being withheld behind-closed-doors.

However, the need for better communication cannot be one-sided from leadership down to the rank and file. The best companies create space for 2-way conversations. They establish a feedback loop where employees feel comfortable getting and giving information. Employees are encouraged to as questions and provide direct feedback on what they see from their position in the company. 

Effective communication establishes a connection between the company, its leadership, and its employees. It fosters relationship building and helps everyone in the organization become better and better communicators. When employees are active participants in the conversation, they can better understand their role in the company, which ultimately leads to better employee retention. 

Provide regular opportunities for team members to build deeper relationships

There is something special about being able to sit across from someone you work with every day, make eye contact, shake their hand. This is not always an option when it comes to remote employees, but if teams are working together from across the organization, it is important to establish an environment in which individuals can get to know one another and build connections. 

According to Strategy+Business Virtually Alone: Real Ways to Connect Remote Teams, when teams are not given space and permission to get to know one another, there is a serious disconnect that prevents individuals from working together as effectively as they could. Employees don’t feel as welcome or may feel neglected entirely. Almost as if they are not part of the team at all. Taking steps to break down those feelings of isolation will yield dividends with employee performance.

This may need to happen virtually, depending on how your team is structured. One option that may work well for remote staff is the use of video in meetings. This allows everyone a chance to see one another even when they can’t be in the same room and can help generate better connections.

When teams build stronger connections, they communicate more effectively. When communication is flowing healthily, it will lead to more collaboration and more creative problem solving between individuals on the team.  

“This feeling of belonging, of shared values and a deep sense of empathy, dramatically increases trust, cooperation and problem solving.” 

– Simon Sinek

Encouraging socializing between employees is another great way for your teams to build stronger relationships with one another as mentioned by Training Journal: How to build a sense of community in the workplace. While some of this naturally happens during the workday, it can often be challenging to get to know someone within the confines of the office. Support efforts for office events outside of the office, whether it is attending a sporting event, a company picnic, dinner at a local establishment, or any number of activities. The options are endless. The important thing is to find activities that are enjoyable to everyone and encourage all individuals to participate. 

Invest in the growth and development of your employees.

Every once in a while, you may hire someone that is satisfied with working the same job for the entire duration of their career. These individuals are rare. For most, knowing there are opportunities to continue learning and growing is imperative to how satisfied they feel about their work. When employees don’t feel encouraged to learn and explore, there is a good chance that they will find their way out of one organization to one that is more receptive to their ambitions. 

Employees want to broaden their skill sets, take on new challenges, and explore different options in their field or maybe another line of work altogether. This is a good thing, and employers should view lifelong learning as a “skill in and of itself that will forward careers as it contributes to your company’s innovative prospects” writes Chris Dyer, CEO, PeopleG2 in recent article for HR Technologist.  Providing the space for them to do those things without fear of consequences adds value to the employer-employee relationship. 

Take time to get to know your employees and understand their talents and interests. Keep an open dialogue about what they want in a career and what education or tools they need to develop the skills that are in line with current and future roles. Allow employees to take the initiative in their career and be a promotor of their continued success. Leaders must be there to encourage and challenge their employees to learn new skills and continuously level up – even if it means the employee eventually leaves for a more fitting opportunity outside of their current organization.  

“People thrive in psychologically safe, inspiring places, which give them ample opportunities for growth…”

– Dorota Piotrowska, Chief People Officer of Netguru,

The Cost of Inaction

When agencies do not invest in building a healthy workplace culture, it will cost them in the long run. Failure to dedicate time and other resources to creating or improving all aspects of company culture will prevent an organization from growing in all the ways that it could. The biggest expense will be the loss of employee satisfaction, which ultimately leads to staff turnover. 

A recent Gallup article estimated the cost of turnover to US businesses at $1 Trillion dollars per year, with an overall turnover rate of 26.3%. Replacing an employee takes time, and “the cost of turnover for a typical American employee is the equivalent of about 2.5 months of their salary” as noted in  Talent and Training Challenges Facing Insurance Agencies in 2019.  Even a small company with ten employees could experience significant turnover cost.  

The good news is that the turnover problem can be corrected and prevented when a company gets intentional about building a culture that retains good employees. Winning on culture is the cornerstone to allowing an agency to succeed.  When a company is known as being a great place to work both inside and outside of the organization, everyone wins. 

“You cannot change culture by piecemeal. You must commit to changing culture systemically. With intention. With clarity. With strategy. With community. With leadership buy-in. With heart.”

– Claude Silver, Chief Heart Officer, VanyerMedia

References:

https://www.strategy-business.com/article/Virtually-Alone-Real-Ways-to-Connect-Remote-Teams?gko=df868

https://www.trainingjournal.com/articles/features/how-build-sense-community-workplace

https://www.hrtechnologist.com/articles/culture/how-to-create-a-culture-of-growth-career-development-within-your-firm/

https://www.hrtechnologist.com/interviews/employee-engagement/netguru-dorota-piotrowska-why-employee-engagement-is-important/

https://www.gallup.com/workplace/247391/fixable-problem-costs-businesses-trillion.aspx