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FOR THE RECORD
A MarshBerry Publication
Volume III, Issue 9                                                                         September, 2009




                                            Agency Producer Age Dispersion
  In last month’s issue, we covered the hiring and retention rates of producers for average and high-
  growth agencies. The data showed that high-growth agencies hire at a higher rate and cut the cord
  quickly on unsuccessful hires. Why are these agencies so focused on implementing a regimented
  producer hiring, training and retention program? Because continually hiring new production talent
  ensures the sustainability and viability of an agency through perpetuation. And by perpetuation, we
  are not simply referring to the transfer of stock within an agency, but also the selection and tutelage of
  the next generation of agency leadership and a transition of agency relationships.



                                                    Producer Age Dispersion
                            35.0%
                                                    41.1%                                                         Average Agency
                            30.0%                                                                                 High-Growth Agency
                                                                            33.1%


                            25.0%
     % of Total Producers




                                                                                    28.6%
                                            28.4%              26.7%
                                                                                                  26.1%
                            20.0%
                                                                                                          22.4%

                            15.0%
                                                       17.1%

                                            14.4%
                            10.0%
                                                                                                                      12.4%
                                    11.3%

                              5%                                                                                              7.8%



                              0%
                                      21-30                 31-40              41-50                 51-60               >60
                                                                          Age


  Our data shows that in average agencies, the average weighted age dispersion of producers under
  the age of 40 is 28.4%, compared to 41.1% in high-growth agencies. By focusing their efforts on
  continually hiring fresh, young talent, high-growth agencies are positioning themselves to be viable
  well into the future.

  The next two issues will examine the average weighted book-of-business and the average new
  business by producer group.

                                                                    Authored by Craig Niess, Product Manager / Consultant, 440-392-6584




  MarshBerry • 4420 Sherwin Road • Willoughby, Ohio 44094 • 800-426-2774 • www.MarshBerry.com • MarshBerry@MarshBerry.com
No portion of this publication may be reproduced without express written consent from Marsh, Berry & Company, Inc. All rights reserved © 2009.


Learn. Improve. Realize.
MarshBerry Solutions


       Information                                Management
                                                                                    Exchange Networks                                 M&A Advisory
         Services                                  Consulting
Benchmarking Services                      Sales Management Strategies              Agency Peak Performance                      Deal Process
Perspectives for High Performance (PHP)    Cultural Alignment                         EXchange (APPEX)                           Acquisition Planning
Sales Tracking, Accountability and         Operational Guidelines                   Over 115 Agencies                            Buy/Seller Representation
    Results (STAR)                         Producer Coaching                        Over $1.4 Billion Revenue                    Agency Search and Screen
Confidential Employee Morale Survey        Sales Manager Training                                                                Agency Fair Market Valuation
Services, Tracking and Timeline Updating   Value Added Platform Construction        Bank Agency NetworK (BANK)                   Deal Benchmarking
    System (STATUS)
                                                                                    Over 25 Banks
                                           Business Planning                        Over $1.0 Billion Revenue                    Deal Execution
MarshBerry.com                             Corporate Strategy
                                                                                                                                 Transaction Negotiation
Performance Calculators                    Execution Procedures
Forms & Documents
                                                                                    Total Agency Sales Culture                   Letter of Intent Development
                                           Strategic Options Analysis
Position Descriptions                                                                  (TASC) Network                            Cross-Marketing Analysis
                                           Perpetuation Plans                       Over 35 Agencies                             IRR, ROI, EPS Analysis
Discussion Groups
                                           Agency Valuation Services                Over $1.1 Billion Revenue                    Intangible Asset Allocation
Research Studies
                                           Perpetuation Planning                    Nation’s leading organic growth agencies     Diagnostic Due Diligence
Market Data
                                           Transfer                                 Enhanced new business production and         Confirmatory Due Diligence
On-Line Value Estimator
                                                                                        retention strategies                     Fairness Opinion
Published Articles                              a. Stock
                                                b. Leadership                                                                    Contract Recommendations
The MarshBerry Letter                           c. Books of Business                Standard Partner Services
Monthly Publication                                                                 Peer Exchange / Networking                   Post-Closing Management
Surveys
                                           Financial Consulting                     Semi-annual Conferences                      Goodwill Impairment
                                           Financial Controls                       Benchmarking Services                        Post-Deal Integration
     a. Market & Financial
     b. Agency Compensation                Compensation Consulting                  MarshBerry.com                               Operational Consulting
     c. Agency Operations                  Value Enhancement Planning               MarshBerry Letter                            Incentive Compensation
                                                                                    Priority Consulting Opportunities
For The Record                             Operational Consulting                   Exclusive Programs
Monthly Publication                        Workflow and Procedures                  Distance Learning Groups (DLG’s)
Statistical Analysis                       E&O Audit, Policies and Procedures
                                           E&O Market Access
Public Speaking Engagements                Customer Service Goal Setting
Keynote/State of the Industry
Topical education                          Recruiting
                                           Position profile, search, screen, hire
Carrier Services                           Compensation development plan
Distribution System Management             Technical and sales training year one
Field Personnel Training and Development                                                                                       MARSHBERRY
Agency Management Symposiums                                                                                                     Exceeding the Standard

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Producer Age Dispersion

  • 1. FOR THE RECORD A MarshBerry Publication Volume III, Issue 9 September, 2009 Agency Producer Age Dispersion In last month’s issue, we covered the hiring and retention rates of producers for average and high- growth agencies. The data showed that high-growth agencies hire at a higher rate and cut the cord quickly on unsuccessful hires. Why are these agencies so focused on implementing a regimented producer hiring, training and retention program? Because continually hiring new production talent ensures the sustainability and viability of an agency through perpetuation. And by perpetuation, we are not simply referring to the transfer of stock within an agency, but also the selection and tutelage of the next generation of agency leadership and a transition of agency relationships. Producer Age Dispersion 35.0% 41.1% Average Agency 30.0% High-Growth Agency 33.1% 25.0% % of Total Producers 28.6% 28.4% 26.7% 26.1% 20.0% 22.4% 15.0% 17.1% 14.4% 10.0% 12.4% 11.3% 5% 7.8% 0% 21-30 31-40 41-50 51-60 >60 Age Our data shows that in average agencies, the average weighted age dispersion of producers under the age of 40 is 28.4%, compared to 41.1% in high-growth agencies. By focusing their efforts on continually hiring fresh, young talent, high-growth agencies are positioning themselves to be viable well into the future. The next two issues will examine the average weighted book-of-business and the average new business by producer group. Authored by Craig Niess, Product Manager / Consultant, 440-392-6584 MarshBerry • 4420 Sherwin Road • Willoughby, Ohio 44094 • 800-426-2774 • www.MarshBerry.com • MarshBerry@MarshBerry.com No portion of this publication may be reproduced without express written consent from Marsh, Berry & Company, Inc. All rights reserved © 2009. Learn. Improve. Realize.
  • 2. MarshBerry Solutions Information Management Exchange Networks M&A Advisory Services Consulting Benchmarking Services Sales Management Strategies Agency Peak Performance Deal Process Perspectives for High Performance (PHP) Cultural Alignment EXchange (APPEX) Acquisition Planning Sales Tracking, Accountability and Operational Guidelines Over 115 Agencies Buy/Seller Representation Results (STAR) Producer Coaching Over $1.4 Billion Revenue Agency Search and Screen Confidential Employee Morale Survey Sales Manager Training Agency Fair Market Valuation Services, Tracking and Timeline Updating Value Added Platform Construction Bank Agency NetworK (BANK) Deal Benchmarking System (STATUS) Over 25 Banks Business Planning Over $1.0 Billion Revenue Deal Execution MarshBerry.com Corporate Strategy Transaction Negotiation Performance Calculators Execution Procedures Forms & Documents Total Agency Sales Culture Letter of Intent Development Strategic Options Analysis Position Descriptions (TASC) Network Cross-Marketing Analysis Perpetuation Plans Over 35 Agencies IRR, ROI, EPS Analysis Discussion Groups Agency Valuation Services Over $1.1 Billion Revenue Intangible Asset Allocation Research Studies Perpetuation Planning Nation’s leading organic growth agencies Diagnostic Due Diligence Market Data Transfer Enhanced new business production and Confirmatory Due Diligence On-Line Value Estimator retention strategies Fairness Opinion Published Articles a. Stock b. Leadership Contract Recommendations The MarshBerry Letter c. Books of Business Standard Partner Services Monthly Publication Peer Exchange / Networking Post-Closing Management Surveys Financial Consulting Semi-annual Conferences Goodwill Impairment Financial Controls Benchmarking Services Post-Deal Integration a. Market & Financial b. Agency Compensation Compensation Consulting MarshBerry.com Operational Consulting c. Agency Operations Value Enhancement Planning MarshBerry Letter Incentive Compensation Priority Consulting Opportunities For The Record Operational Consulting Exclusive Programs Monthly Publication Workflow and Procedures Distance Learning Groups (DLG’s) Statistical Analysis E&O Audit, Policies and Procedures E&O Market Access Public Speaking Engagements Customer Service Goal Setting Keynote/State of the Industry Topical education Recruiting Position profile, search, screen, hire Carrier Services Compensation development plan Distribution System Management Technical and sales training year one Field Personnel Training and Development MARSHBERRY Agency Management Symposiums Exceeding the Standard