The Insurance Dudes©

Why 70% of Agency Turnover Is Emotional, Not Financial with IDudes Mailbag

The Insurance Dudes: Craig Pretzinger and Jason Feltman

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Are high turnover and ineffective leadership draining your agency’s culture and momentum? In this no-fluff episode, we break down how emotional burnout, unclear expectations, and toxic environments are killing your growth and reveal proven strategies to fix it fast.


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Craig Pretzinger & Jason Feltman
The Insurance Dudes

SPEAKER_01

Hey, Mr. Jason. Yeah, Mr. Craig. Hmm. That pause you were messing with me. I thought you weren't there that you were working on your lighting. Which I've been encouraging you to do. Yeah, I know. I know. Did you ever think that most agency owners kind of hire like they're dating, but then they run the agency like it's a prison? And you don't want to combine the two. Right.

SPEAKER_02

Well, I mean, maybe some do. That's a different podcast. Yep. Yep. Yeah, man. Hiring someone, they seem amazing. 60 days later, they disappear. Mm-hmm. Yeah, you spend money on leads. You spend time on training. And as an owner, it's really easily easy to get attached to someone early. I mean, even in the interview, right? Like they just say that one thing. And you're like, dude, I camp too. We're both campers.

SPEAKER_01

This is this was this is meant to be. Yeah. And you're sitting there going, oh, this guy's gonna save my agency. This is it. This is the one. Yep. Yeah. 100%. Then all of a sudden they're ghosting on things, or they, you know, the first 90 days. I mean, I've always had it, and it wasn't as as well enforced, but you can't, you know, there's very limited time you can be out. And so, you know, they're they're not and they're calling in sick right in the beginning.

SPEAKER_02

You're like, Yeah. Yeah. And owners think that it all has to do with the pay, right? Like everything has to do with how much you pay someone. Oh, they're, you know, they're too, they're so expensive, or well, I pay them X amount of money, they should be doing these activities. But there's a lot more nuance these days than just pay.

SPEAKER_01

Yeah.

SPEAKER_02

Well, people want freedom, right? They want some flexibility. And there's a few other things, but let's make people wait for exactly what that is. Because we got a lot of good stuff coming. You ever like know someone's quitting before they're quitting? Yeah. Yeah. You know what I mean? Uh-huh. Or like, you know, the Friday at like almost five o'clock. It's 4 47. They say, can we talk Monday? Right. Yeah. Nothing good is ever followed by, hey, do you have a minute? Yeah. Sometimes I've given that one, right?

SPEAKER_01

Yeah.

SPEAKER_02

Hey, hey, hey, Sam, you have a minute? Just a minute. Sure. And then you get the sure response.

SPEAKER_01

Yeah. The fake enthusiasm. The new higher phase, fake enthusiasm.

SPEAKER_02

Yep. Yep.

SPEAKER_01

Day one. I'm so excited to be here.

SPEAKER_02

Yeah, a hundred percent. Yeah, people don't stay because of the money anymore, right? We've definitely seen a shift and change with that. Compensation plans can't be fixed by bad leadership.

SPEAKER_00

Mm-hmm.

SPEAKER_02

That's true. One of the biggest things that we see is that turnover is emotional, not financial. Yeah. Emotional. Speak more on that, Mr. Jason. It's intriguing. Well, then there's another side of it too, right? Like especially if you hire a high performer. High performers don't want comfort. They want progress. They want to know that there's the next level, that they're going after something. As soon as they get bored, they're out.

SPEAKER_01

Right. You could say that salespeople leave confusion quicker than they leave from pressure. I can't even talk. I would say it's talk about confusion. I mean, it's a bit a whole phone phone system movement situation over here. My brain is fried.

SPEAKER_02

Yeah. But but the reality right now is that insurance sales is emotionally exhausting. And I say it all the time in the agency. Like you're dealing with a lot, right? You're dealing with a ton of no's, uh, people that are upset. You're kind of just putting out fires nonstop. So it can it can be tough. You got the rejections, you got chargebacks, you have cancellations, you get burnout of calling your leads, new agents, they're overwhelmed when they come into the agency because they've never, you know, even if they've been a part of another agency, there's a bunch of new ways that you're doing stuff to compare with what they're used to.

SPEAKER_01

Well, and then how was how was your trading when you when you first started, when you walked in the door, like how were you as a boss on the first day for somebody new? Like what was that trading like? At the beginning or now? In the beginning.

SPEAKER_02

I would just say, I would just say shadow someone.

SPEAKER_01

Right. Right. You know? That's an easy, it's an easy way out. Hey, go ahead and sit next to Jorge and watch what's going on.

SPEAKER_02

Yeah, and they're really into it for the first few days on their best behavior. But two or three weeks into it, dude, they're they're eating chips. They're like, no, I'm just learning. I'm learning this stuff. Yeah. And it's like they're kicking back, right? And then you set a pace that is totally not the pace that you want for your agency. Right. And then they come in and they continually do less. And at some point you're like, no, you got to do more. And they're like, what are you talking about?

SPEAKER_01

What are you talking about? I've had chips on my shirt the whole time and I'm used to it. Yeah. You just it does come down to that whole, what is it like when they come in?

SPEAKER_02

Yeah. And then as an owner, you expect people to care like their owners, but guess what? They're not owners and they don't care as much. Right. And they're getting paid X amount, so they're never going to care as much as you do. Not if it's run like a prison.

SPEAKER_00

Yeah.

SPEAKER_02

Right. From what I hear. Right. From what Jason tells me. And the the younger workforce does not operate in the same manner that they used to. Every time someone leaves the agency, your agency loses momentum, right? Isn't that the worst feeling?

SPEAKER_01

Yeah. I mean, yeah. It can happen.

SPEAKER_02

But somebody else leaves afterwards, right?

SPEAKER_01

Mm-hmm. Well, same thing as if somebody comes in and they're crushing it and it goes the other way. You know, that momentum can go either direction. Yeah. Man, negative momentum hurts. Have you had that happen?

SPEAKER_02

Yeah.

SPEAKER_01

Not in California.

SPEAKER_02

No, California's perfect. It's so easy out here. No rules. Turnover kills culture faster than bad sales. I don't know about that one. Turnover kills. Do you think that that's true? Say that one more time, Mr. Jason. I think turnover kills culture faster than bad sales, but I would say they both do. They're both deflating, right? Turnover shows like, you know, this person, if they leave, they're usually leaving for a better opportunity in their mind. And then they're talking to everybody about this better opportunity. And so then the rest of the team goes, Maybe there is a better opportunity out there. Right. So with that, usually they're they let the foot off the gas a little bit and they're like, yeah, it does kind of suck. And like as they're not doing as well.

SPEAKER_01

And it starts to slide and everybody else starts to slide because that's the new expectation. Yeah. The new existence. Yeah. Yeah. I mean, humids, we tend to find the grass is always greener, right? The grass is always greener on the other side. So it's gotta be like that regardless. Or some would say irregardlessly. Yeah. Not many would say that though.

SPEAKER_02

I think a lot of business owners are like you and I in the sense where we're a little 80 ADHD. We're a little we're a little frantic. And I think sometimes the constant change and energy can be rough and chaotic for people.

SPEAKER_01

Right. Yet we set ourselves up for it.

SPEAKER_02

Right. And what they want is more of the stability and incremental growth. Yeah. So if money alone isn't the answer, what actually keeps a good salesperson?

SPEAKER_01

Well, I mean, I think clarity of what's expected.

SPEAKER_02

Yeah. So aka clear expectations. So so what what are like give me some pieces of clarity because that's that's one of those buzzwords that's hard to define. Oh, clarity, yeah.

SPEAKER_01

I don't know what it is, man. I just no, no, I'm just kidding. Uh like let's say you have you have defined scoreboards. I mean, or I remember uh an agent that would that came on a while back talk and I know in his office, I mean, I haven't followed suit with that, but we do have we have you know a couple TVs with the stats up. We have a couple boards that we write on. But remember one agent that came on, he he had stuff everywhere. Like his entire office, the walls were like in that uh, what is that, perfect mind? Like, you know, written everywhere, you know. So that that's interesting. But it but it's like having those scoreboards everywhere really makes an impact, right? Because people, okay, not only is it being tracked, but it is being tracked. They, you know, there's something to look at and be excited about. The processes. Like, are is the process just hey, go shadow Sammy over there? And that's that's the training, or is it, hey, day one, this happens, day two, this happens, day three, this happens, day four, this happens.

SPEAKER_02

Yeah, 100%. Processes defined onboarding, going back to what we were talking about, man. Like that is the moment in which you are defining what it's like to be there for the long haul. You're almost instilling behaviors at that point, right? Beliefs and behaviors.

SPEAKER_01

And uh, I mean that could even go back into the um the interview, right? You're already pre-setting it. So one of the things we do is we interview in the in the uh conference room, which they have to walk by the producers. And so we don't do it when the producers aren't here, otherwise it's a ghost town, right? We you do it when everybody's there and they're all on the phone. And that's when you schedule the interview so they see buzzing activity, right? You don't want them to come into the mausoleum.

SPEAKER_02

Yeah. Gosh, I miss that. I haven't had people in the office in years.

SPEAKER_01

Yeah. We don't have as many. Some are remote.

SPEAKER_02

We only had 10 out there. A defined path for success. And this goes back to the numbers. And agents, we are pretty terrible with numbers. Historically, right? A lot of agents that we talk to, we know the outcome that we want. We know bits and pieces of that, those numbers that that get there, right? But not like things are fuzzy.

SPEAKER_01

Yeah.

SPEAKER_02

And like if we're a little fuzzy on that, could you imagine how they are? They don't get it, right? I mean, our comp plans are terrible with with the carriers as far as like knowing what's going on.

SPEAKER_01

It's like Chuck E. Cheese. Turn your money in, get to get some tokens, then you're gonna turn your tokens into a stuffed.

SPEAKER_02

And so a lot of times we pass that confusion on to the team. Oh, here's uh 75 different ways to make money here, and here's the math on it. And if this changes, then it's like, dude, they're they're never gonna understand that. Like, it doesn't make sense to to pass the confusion on. And then it's like, what are those numbers? Well, like, what is the exact activity that leads to the exact result? And what is it is the result that they want that leads to the extra commission? Yeah. And like showing them what success looks like with all those different metric points is the difference between them being able to see the path in which they want to get or just being confused hoping. And if they're hoping to get it, then it doesn't really matter what they do. They're just hoping to get it.

SPEAKER_01

Right. And then they get their thing and there's a bunch of chargebacks, they don't know why, and then right? Yeah. I mean, it's it's like, would you rather go choose from the menu at uh macaroni or not macaroni, uh Cheesecake Factory, or it's it's that, you know, it's 400 things or in and out. It's like yeah, you go to in and out, you know, it's like there's two things, right? Burgers and fries, baby. I mean, make it easy. You gotta make it simple. And then you can talk about the same thing over and over. And if you talk about the same thing over and over, they'll finally hear it and they'll do it.

SPEAKER_02

So the principle here is confused salespeople or just staff in general quit fast. Do they ever? Okay, so let's talk about momentum more than motivation. Matters more. Go, Craig. Motivation. Small wins early. Yes. Yeah. Yes. They need the small wins early. Momentum matters for 500. I would say early commissions, right? We're we've always talked about that. We're owners, so we can delay the gratification into a year or a year and a half or half, whatever crazy method they plan on on giving it to us.

SPEAKER_00

Yeah.

SPEAKER_02

But like we can hedge the time gap where as an employee, you expect things quickly. So like the the quicker that you can give some commission bonuses, they can they will feel the momentum, the momentum. If they can see that they're gonna get something quick, it will build that momentum.

SPEAKER_01

It's not it. So I I already was gonna explain the thing that I haven't said yet, which is but it's celebrating activity too, right? Celebrate activity. Like we it's really easy to get focused on the outcome, which is the sale and and all these things, but celebrate the activity, right? Jimmy got four hours, four and a half hours of talk time. Hey, that's awesome, right? That's what we want. We don't need to beat everybody up constantly. We can actually celebrate the things they're doing. And and again, if we're giving them clear expectations, then they're gonna hit those things, right?

SPEAKER_02

Right. Yep. And confidence stacking, right? That's where you're celebrating those wins. They are building confidence with everything that they're doing. And they need that. Again, there's a lot of negative stuff that happens that can build in the agency. Not negative, but can feel negative, right? Somebody's canceling. Somebody just called in that you just signed up, that that's leaving, or just you thought the sale was gonna happen today. It didn't happen. Like there's a million things that can kind of push you sideways. So you got a confidence sack, you know, to keep that momentum.

SPEAKER_01

And momentum is so much greater than hype speeches. Yes. But they want, you know, you gotta you gotta pump them up, but they gotta see that that's gotta happen, right?

SPEAKER_02

It's gotta lead to something, not just so momentum over hype speeches for sure. You do need to give the speeches, but you also need to like on the back end, if you need to buy some more leads or you need to get more callers or something to give them momentum, give them the momentum. Why? Because it does stack. Like somebody who's kicked in the dirt that you because two weeks ago you decided to go back on leads because you wanted to save a few dollars. Well, dude, they're feeling it, right? Like you that you feel it two to three weeks later, and then all of a sudden their sales are going down. Now you're buying more leads, uh, but their confidence is down, so they're not converting as well. And it's like, dude, you're in charge of that. Like you need to build their confidence and keep that momentum going.

SPEAKER_01

I could tell you right now that it's a little challenging around here right now, doing this whole phone switch. And there has been a, you know, I've had to dive in to places that I haven't had to in a while and really talk to people and really get them to understand the trajectory, right? Because there is that delay, there's that delay between it going bad. Like you didn't realize it was as bad as it was until it catches up. Lagging indicator. And then you also have to realize it, hey, we're doing the right things now. The activity's there. It doesn't mean that today all of a sudden we're crushing it, right? And so uh it's having that that patience when when that when you're in that little funk, right? When you're in a valley.

SPEAKER_02

Okay, so the point of this is that pizza parties don't fix bad clothes ratio. But they sure do taste good. But they do taste good. Okay. Uh culture isn't vibes, it's stability.

SPEAKER_01

So true.

SPEAKER_02

And stability, again, as an owner, you are usually creating instability. Why? Because if you're anything like Craig and I, we are all over the place. Consistency in processes is not our best suit, right? Like that's why we are where we are. We're good at like putting out quick fires and doing stuff quickly. So sometimes we can create that instability. So things that we can do, predictable leadership, right? So making sure if if you aren't going to be consistent on a process, put somebody in place of the process that will be consistent because consistency trumps intensity every day.

SPEAKER_00

Ooh.

SPEAKER_02

Like that.

SPEAKER_00

Yeah.

SPEAKER_02

Everybody loves a little rhyming. Consistent coaching. And I think this is where people with our personalities work best, right? Consistent coaching. Sometimes we back off of it, but the coaching part is just super important. Yeah. Emotional stability, emotions. There's a lot of emotions. That's the hard thing about people. Right. Right? Yeah.

SPEAKER_01

The more in the more unstable the leader is. Fred Deby always uses this one, uh, the fish rots from the head. Yeah. So yeah, you you gotta keep yourself together, otherwise, everybody else is gonna fall apart too.

SPEAKER_02

So, in other words, no daily panic from the owner. That is number one, if you are showing your team that you're panicking daily, you need to do some therapy. At least, at least go work out, go running. Yeah. Or you can do like I did set up a gym in your office and throw some weight around. Yeah. What do you think of that, Craig? I think it's fantastic. Yeah, but don't panic.

SPEAKER_01

Yeah. I mean, and it's easy, right? I mean, I I've felt it recently for the first time in a while. And I know just from doing this long enough that okay, I mean, it's not always, it's not always just humming along. And that's just the way it is. So you have to take a more holistic long-term approach and realize this is just one tiny little slice, right? It's just a mini season. It's okay, gotta get through it. But if you know they're panicking, if they're not writing as much, but if you start panicking, huh?

SPEAKER_02

It's entropy, my man. Yeah. Everything waxes old. Waxed on, waxed off. You gotta you gotta pull the propeller every now and then to get it going again. Yeah. That's what and this is how you build team trust. So, Craig, tell me what is the principle of this? Of what? Team trust? No, culture isn't vibes.

SPEAKER_01

It's stability, baby. Well, I mean, obviously, it's it's the whole thing, it's the whole enchilada. We need to make sure that the culture is there because if it's not, man, am I tap dancing?

SPEAKER_02

Nothing is scarier than an owner on an energy drink rampage.

SPEAKER_01

What? That's why I stated myself. That was written for you, Mr. Craig. That's why I stated myself.

SPEAKER_02

All right, number four, people stay where they can grow. Yeah. Career path, right? Are we talking career path or is it a joke? We're talking about career path. We're talking about a path in general, not just a you're sitting here rotting.

SPEAKER_01

Right. And I mean, what's the this is one of the highest turnover industries that there is. So, and every month that somebody leaves earlier than they should costs money and probably some emotional. So lay down that career path. Show them where they can go, right? Right. And it's not just, oh, you can make a bunch, oh, you can do this. You know, show them. This is like if you go here, if you make it, you know, X amount of time doing this, this is the next step. And this is the next step, and this is the next step. But lay it out leadership opportunities, right? Sales development. I mean, sales development, it it comes in in the for we've talked about it forever, but it's meetings, right? If you don't have meetings every day, start having meetings every day. Right. Because it will change your agency and it doesn't have to be long.

SPEAKER_02

We got skill development, especially with AI and stuff. Give them the tools to make them go faster. Yeah. Speaking of which, we will speed this up a little bit because we got a few other things to talk about, but skill development, ownership mentality, right? A lot of the owners, and I was talking to another agency owner about this. Hold stuff back from their team and stuff. Like, tell them like what's the mission? What's the vision? Like, where are we going? Why are we changing things? The why, dude. I have a son that's ADHD. If you don't give him a why to do something, he won't do it. Like, you give him a good why, and dude, he'll do more than you'll ever ask him to do. The why is actually more important. Yeah, he's just curious. Yeah. Doesn't understand why you got to do some algebra. And it's making your team feel invested. Nobody wants to cap out at a guy who quotes auto all day. Oh, that's a tough one. That's tough. All right, number five. And this is the final one. Before we we list some super big mistakes. The recruiting never stops, Mr. Jason. And we always say that. We just talked about that recently, but always be interviewing. Never emotionally depend on one employee. Never keep an employee because never keep an employee that's producing a ton that is draining the team emotionally either, because you don't realize they might be doing a lot, but they're also probably taking a lot as well.

SPEAKER_01

Yeah. Over the years, I've had two of those.

SPEAKER_02

Oh, it's the worst.

SPEAKER_01

And it's like you you look back and you're like, man, the day they left was not the day that the mess went away, but it was the it was the day that it was like, oh, you know, this is this is better. It was not good to hold on for them for that long.

SPEAKER_02

Yep. And so just with with recruiting, if losing one producer wrecks your agency, then you definitely waited too long. Yeah.

SPEAKER_01

To hire. Definitely not looking. I mean, it's easy to put off, right? I mean, nobody wants to have to interview all the time. All right, biggest mistakes, Mr. Craig. You must. Biggest mistakes, hiring. I mean, let's speak to what I was just saying. Hiring out of desperation. If you're not, if you're not doing it all the time, if you're not constantly recruiting, then you will be hiring out of desperation. I mean, 20 years of doing it, I can promise you that that is the case. Every every time that it that somebody left at a you know, man, overpromising income. Oh, hey, you know, come in here. You're gonna you're gonna be making 150K. Come on. Come on. Let's rapid fire these. No, no onboarding system. Nope. We already talked about that.

SPEAKER_02

Inconsistent management. We talked about that. Treating everyone identically.

SPEAKER_01

What about that? Do you? Don't you?

SPEAKER_02

I mean, I I would say yes in one way and no in another. Like, yes, treat them, treat everybody the same with the same care, but definitely when it comes to earning bonuses and perks and stuff like that, no, absolutely not. You need to earn those perks.

SPEAKER_01

Right. Or hold the line on the on the things that you lay down that it's accountability. It's like, oh no, you don't bend the rule for so and so. But you are gonna be personable, right? Yep. No accountability. If if you give up on the accountability, it turns into the shit show. That's a big one.

SPEAKER_02

Right? Micromanaging producers. Jinx. Yep. And if we do that, you're just you're on the hamster wheel, bro. That is a nightmare. You got the wrong team. Like there's an easier way to do it.

SPEAKER_01

Yeah. Well, and that that happens. It's kind of it that's the after effect of not laying down the coaching, right? Of not holding the accountability. And then it turns all of a sudden, now you're micromanaging. Now you've got now you're emotional and have emotional leadership going. And that's a that's going to be a problem. Right. Now you're going to hold on to people like we were just talking about. Maybe that big producer is doing awesome, but they're toxic and they're making everybody else upset and want to stab their eyeballs. And then those people leave. And now it's just you and Mr. Toxic. Yeah. Right. And assuming that every adult in the world automatically knows sales.

SPEAKER_02

Right. So going back to not coaching, everybody will fall off. They will go in different directions. Emotional leadership coming in, bad day, good day, all over the place, terrible, keeping toxic people too long. We talked about that. And assuming adults automatically know sales, it's what you were talking about. Gosh, here's the real truth. Retention is built before someone ever thinks about quitting when it comes to your staff.

SPEAKER_01

Yeah. And you know what's interesting is a lot of folks don't look at they look at the retention of the clients, but they don't look at the retention of the of the team. Yep. But I mean, I think if you lose a policy, it's a lot less expensive than it is to lose an employee.

SPEAKER_02

Right. It's the big picture. The best agencies rely on loyalty. They build environments that people don't want to leave. And we see this all the time.

SPEAKER_01

Yeah. And you know, I used I've even I've even complained before, before I understood and and became a little bit older and kind of got some of these concepts. But saying, I can't believe so and so left. I did, I did, I did this, I did that, I did these things. It doesn't matter, right? They're going to be loyal to themselves, not to the business. Right. But if you build the the environment that they're that they love and they thrive in, they're going to be here, right?

SPEAKER_02

Because they love it. Yeah, because people don't actually quit the job itself. They're quitting confusion, chaos, all the things that we're talking about. That's what they're quitting. They're leaving those things. They're not leaving the job. They're going to somebody else that has the same job. Right. Well, they do want to stay. There's people there that they want to stay. It's, but it's all the other factors that are making them want to leave.

SPEAKER_01

Yeah. This is a true story.

SPEAKER_02

Yep.

SPEAKER_01

Keeping salespeople is hard because sales is hard.

SPEAKER_02

True. So let's here's a couple uh ending questions for you. If you're listening, and by the way, if you are listening, no. Smash that share. Join our school group. We have so many tools to help you as an agency owner in there. We're actually building a tool right now, and it's in beta. Craig. You're a tool. That helps you choose the best employees. What? Not on emotion, but on actual, actual uh skill level. Yeah. That Craig and I have been using for how many years? Since 20. Yeah, like incredible. That's actually how we met was off this tool. And we kept using it, but recently refining the tool, and I'm gonna make it public because it's just too good.

SPEAKER_01

Yeah. Well, it was just a little too complicated. And now it's it's not. It's not, and it's it's pretty awesome.

SPEAKER_02

I'm pretty uh stoked with what what we got. So here are five questions to ask yourself. What actually makes someone stay long-term in your agency? That's the first one. Second one, would you want to work in your agency? Would you actually want to work? Would you sign up for somebody else's agency if they if it was just like your agency? Yeah. And what's the real piece pe uh reason why people leave? So when you ask yourself this, don't just assume it's because of this, that like, dude, be honest. Like, find the real reason and be man enough or woman enough to be able to like take the criticism because it's something that you're doing or something that you're allowing. Or furry, furry enough. Right. Because what's harder, finding talent or developing it? I mean, obviously finding it. Right. How much turnover is actually owner created? Well, it depends on how how uh honest I want to be with myself. I would I would say it all is, right? Because you are are playing chess. You're the one that's in charge of everything. So you're either even if it's you're allowing someone to be there that's creating the problem, then ultimately it's your decision. So right.

SPEAKER_01

It starts from the interview. Like if it hasn't been set up and run properly, it's a human and they're gonna they're gonna go the wrong way. Right?

SPEAKER_02

They need guidance. So those are some of the people problems that we want to talk about. I got a problem with you people. Yeah.

SPEAKER_01

Remember that the people that need babysitters, they need direction. Remember festivists for the rest of this?

SPEAKER_02

Yeah.

SPEAKER_01

Yeah.

SPEAKER_02

Airing of grievances. I got a problem with you people.

SPEAKER_01

I got a problem with you people. The festivist.

SPEAKER_02

That's a mailbag. Festivus poll.

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