The myriad workforce changes that workers across industries have experienced over the past few years, from hybrid office models to Zoom calls, have also impacted independent advertising agencies. (Photo: Monkey Business/Adobe Stock)
Culture is everything. In our experience, great company cultures are driven by high-performing, highly valued employees. And as recent articles and news stories about how we get work clearly demonstrate, business leaders and team members across the country are increasingly recognizing the value that workplace culture has on employee retention, overall happiness, engagement, and business growth. In fact, according to a 2023 research report, nearly half of decision-makers and leaders surveyed by the Arbinger Institute say that as culture improves, it drives improvements in areas critical to growth, including employee productivity, retention, and engagement.
In a people-dependent business like insurance, happy, engaged team members are an agency’s greatest asset. Insurance agents thrive by building great relationships with their customers. The reality is, team members are working with complex products that consumers often don’t fully understand, creating inconvenience (or crisis) situations when they have to use them. Customers stay when they build strong relationships with agency representatives they can trust and who deliver great products and services that meet their needs. Company culture is at the heart of that relationship and it’s all about developing engaged, inspired, motivated and happy team members that satisfy customers.
The current state of corporate culture at independent advertising agencies
The myriad workforce changes that workers across industries have experienced over the past few years, from hybrid office models to Zoom calls, have also impacted independent agencies. As these changes become part of the new normal, fostering a healthy company culture is crucial. There was a time when an insurance agency simply had to be the most convenient option in town. Today, consumers and future talent have numerous agents and options at their fingertips. If agency leaders ignore their company culture or allow it to develop naturally, they may struggle to grow or even retain business in today’s competitive environment.
It’s not just changes in working patterns that are impacting agency culture. Mergers and acquisitions across independent agencies are also having a negative impact on culture. Agency employees who are integrated into other organizations after a merger can experience a sudden cultural shift. If not handled properly, these changes can drive away talented team members and good business. If agency leadership isn’t investing in culture, it will be obvious to their teams and clients. Many agencies will leave in search of an organization that values ​​and supports culture.
Define your agency culture
Before investing in agency culture, agency leaders should define their agency vision, ideally with employee input, and explain how they plan to measure it. Leaders who take an attitude summarized in the phrase, “If no one complains, everything is fine” are missing out on valuable opportunities to grow their business. A good way to define company culture is to start with one-on-one conversations and team meetings to identify shared values, passions, and goals. Leaders can then consider how those findings align with the agency’s business plan and how they can be improved. While these metrics may not be as clear-cut as a balance sheet, properly managing workplace culture also contributes to the bottom line.
Commitment to investing in independent agency culture
Achieving a strong company culture requires ongoing investment from the top down in any business. As your insurance agency grows and changes, your approach to culture must change too. When considering investing in your independent agency culture, consider the following:
- There is no one-size-fits-all solution. While it is beneficial for insurance agency leaders to exchange ideas and learn from each other about how they approach culture, it is important to remember that culture is unique to each agency. Culture is made up of people, the values ​​they share, and what they bring to the environment every day. Investments in agency culture must be intentional and reflective of the people throughout the organization.
- Focus on our core values: When considering investing in your agency culture, core values ​​are a great place to start. It is your team members and clients who make up your agency, understanding what is important to them and what your agency has to communicate to the public. Evaluating your agency’s core values ​​can help you identify areas where investment will pay off the most.
- Keep the dialogue open: Company culture is constantly evolving, so agency leaders must maintain an open dialogue about culture that includes all team members. Investments in culture require buy-in from the entire organization to be effective. Insurance agency leaders must maintain ongoing conversations about culture and solicit team member input.
As the workforce continues to evolve, so do the needs of independent agencies and their culture. The world will continue to change at a record pace with advances in technology and younger generations finding themselves in independent agencies. But talent and trust will remain at the core of an industry that is heavily rooted in independent agency culture. If agencies are looking to improve their organizational culture, they are wise to start from within. When clients and team members are given the opportunity to provide feedback, agents may make some surprising discoveries.
Ian Exelbert is the Western Regional Director for SIAA and is committed to creating, growing and developing local independent agencies. Contact him at [email protected].
David L. Rice Jr. is president of Michigan Agency Partners, a SIAA Master Agency, and he remains committed to the success of independent insurance agencies.
