Most Employees Do Not Trust The Boss

At Tague Alliance we value our team highly and put a lot of work into building open, honest, and trustworthy relationships with our employees.  The article below was a bit shocking, but not surprising.  Many employees do not trust their boss or manager which is totally sad.  We encourage you to make sure you are being open, honest, consistent, proactive, and accountable with your agency staff to facilitate a healthy and productive team.

Most Employees Don’t Trust the Boss; Mistrust Impacts Growth, Innovation: Research

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November 4, 2014

More than half of the people surveyed give their organizations low marks for trust and effective leadership, according to a consulting firm specializing in workplace performance improvement.

Interaction Associates, which has released its annual workplace trust research,Building Workplace Trust 2014/15, also finds links between “trust leader organizations” and revenue growth, and between “trust leaders” and high levels of innovation.

As part of the survey, workers were asked to rate the statement: “Employees have a high level of trust in management and the organization.”

In response, only four out of ten agreed that the description was suitable for their organization well. Fifty-eight percent found their organizations lacking. In addition, 26 percent of those surveyed say they trust their boss less this year than in 2013.

For the purposes of the Building Workplace Trust research, trust is defined as the willingness to accept personal risk based on another person’s actions. And on the measure of risk and safety specifically, people trust their peers more than the boss.

More than half of those surveyed—54 percent— say they feel safe communicating their ideas and opinions with colleagues and peers. In contrast, only 38 percent of those surveyed say that people feel safe communicating their ideas and opinions with leadership.

Asked about the appropriateness of another statement—“My organization has effective leadership”—only 45 percent agreed.

This year’s research—the sixth annual report—polled more than 500 people employed at companies worldwide in a range of job functions and industries. Interaction Associates commissioned the international research company, IDG Research Services, to implement this year’s Building Workplace Trust survey.

In a statement about the survey, Linda Stewart, CEO of Interaction Associates, said: “Our research consistently points to how trust is critical for driving business results—and yet we see such a high rate of mistrust among the working population this year.

“The results are alarming especially in light of the importance people place on trusting their leadership—some 82 percent of all respondents say that trusting their boss is essential for them to be effective in their job,” added Stewart.

Trust Leaders, Laggards and Financial Performance

Other findings in Building Workplace Trust specifically detail the differences between trust leader organizations and trust laggards, defining “trust leaders” as the 10 percent of companies whose workers agree that “Employees have high trust in leaders and the organization” describes their organization “extremely well.”

According to Interaction Associates, companies that are trust leaders are more than two-and-a-half times more likely than trust laggards to also be leaders in revenue growth.

What’s more, trust leaders significantly outperform all other organizations in achieving key business goals, such as customer loyalty and retention, competitive market position, ethical behavior and actions, predictable business and financial results, and profit growth, Interaction Associates says.

Building Workplace Trust also points to significant gaps between trust leaders and other organizations in the behavior and actions that foster the right cultural conditions for high trust in organizations.

Ninety-six percent of those surveyed who work for trust leader organizations say their leaders make decisions that are consistent, predictable, and transparent. Only 29 percent of non-trust leaders say that’s the case at their organizations.

Other behaviors and actions that foster trust—and where there are huge double-digit gaps between trust leader organizations and non-leaders—include:

• People and teams can take risks (i.e. people are “allowed to fail” and learn from their mistakes).
• People have a shared sense of commitment and responsibility.
• The organization encourages transparency and shared understanding of key processes for decisions and initiatives.

Trust Drives Innovation

The consulting firm also finds that trust drives innovation, with gaps between leaders and laggards reported. According to the research, while 65 percent say that trust leaders prioritize innovation, only 14 percent say this is a priority for laggards.

Additionally, roughly 80 percent of employees report that a high level of trust inside an organization fosters both innovation and investment in new projects.

The bottom line of all the findings is that employees crave transparency from leaders, and they want input into decisions that affect them. The top five actions employees urge leaders to take in order to build trust are:

1. Ask for input into decisions that affect me
2. Give me background information so I can understand decisions
3. Set me up for success with learning and resources
4. Admit your mistakes
5. Don’t punish people for raising issues (Don’t shoot the messenger!)

About the Survey

Interaction Associates commissioned the international research company, IDG Research Services, to implement the research for Building Workplace Trust 2014/15,polling more than 500 people employed at companies worldwide in a range of job functions and industries.

About Interaction Associates

Interaction Associates helps organizations around the world build high-involvement, collaborative cultures by developing their leaders, teams, and change agents. Services include customized consulting, learning and development, including live online programs, and coaching services. IA was named was named one of Training Industry’s Top 20 Leadership Training Companies from 2012-2014.

Source: Interaction Associates 

Tague Alliance Members & Independent Agents Should Consider Embracing The E-Myth Concepts

If you are not yet familiar with the E-Myth and the concepts behind the business principles espoused by Michael Gerber it is time you become acquainted.  The fundamental tenant of the E-Myth is that a the "technician" or in our insurance world "producer" believes they have what it takes to run an agency and become an "entrepreneur" or "agency owner".  The myth is the producer believes he/she will have more time, more money, more control, more happiness, etc.  In order not to fall into the entrepreneurial myth, the business owner must be able to work "on the business" not just "in the business".

Take a look at a simple but solid concept called "Your Business Ecosystem"  and check out this snippet of content from E-Myth Revisited.

If you have not already read the E-Myth and want to get more insight into the concepts take a look at the E-Myth website at http://emyth.com/blog/

Years ago I read the E-Myth, then E-Myth Revisited, and finally E-Myth Mastery.  All of these books are great sources of information and you should consider them as part of your small business ownership education program.  Amazon sells all of the books.

It is critical that you think critically about building your business and making sure you are doing the things that will have a lasting positive impact on you and your families financial health long-term!

Fighting Insurance Fraud - Some Red Flags That Should Cause An Insurance Agent To Ask More Questions

Tague Alliance works diligently with our member agencies to help them build profitable and stable independent insurance agencies.  In working to mitigate our loss ratios we need to utilize all frontline underwriting tools and insights that are available.  The article below provides some great tips on various red flags that an insurance agent should be aware of.

Fraud Red Flags

Allied's Special Investigation Unit (SIU) is where the fight against insurance fraud ends. Your agency is where it begins. By reviewing this list of red flag behaviors for a new applicant, you may be able to head off a potential fraudulent claim.

Please note: The following are industry red flags as established by the NICB. The presence of one or more does not prove fraud.

NICB general indicators of application fraud

The following list of behaviors may indicate a possibility of intent to commit fraud when applying for insurance.

• Unsolicited, new walk-in business, not referred by existing policyholder.
• Applicant walks into agent's office at noon or end of day when agent and staff may be rushed.
• Applicant neither works nor resides near the agency.
• Applicant's given address is inconsistent with employment/income.
• Applicant gives post office box as address.
• Applicant has lived at current address less than six months.
• Applicant has no telephone number or provides a mobile/cellular phone number.
• Applicant cannot provide a driver's license or other identification, or has a temporary, recently issued or out-of-state driver's license.
• Applicant wants to pay the premium in cash.
• Applicant pays minimum required amount of premium.
• Applicant suggests price is no object when applying for coverage.
• Applicant's income is not compatible with the value of the vehicle to be insured.
• Applicant is never available to meet in person and supplies all information by telephone.
• Applicant is unemployed or self-employed in transient occupation.
• Applicant questions agent closely on claim handling procedures.
• Applicant is unusually familiar with insurance terms or procedures.
• Applicant is not signed in agent's view (i.e. mailed in).
• Applicant works through a third party.
• Applicant has had a driver's license for significant period, but not prior vehicle ownership and/or insurance.

NICB indicators associated with coverage

Existence of any of the following conditions may indicate intent to commit fraud.

• Name of previous insurance carrier or proof of prior coverage cannot be provided.
• No prior insurance coverage is reported although applicant's age would suggest prior ownership of a vehicle and/or property.
• Significant break-in coverage is reported under prior coverage.
• Question about recent prior claims is left unanswered.
• Full coverage is requested for older vehicle.
• No existing damage is reported for older vehicle.
• Exceptionally high liability limits are requested for older vehicle inconsistent with applicant's employment, income or lifestyle.

NICB indicators associated with applicant's vehicle/business

Existence of any of the following conditions may indicate intent to commit fraud.

• Vehicle is not available for inspection.
• Photos are submitted in lieu of inspection.
• Vehicle does not appear to be appropriate for the claimed address or income.
• Vehicle has an unusual amount of after-market equipment (stereo, wheels, car phone, etc.)
• Vehicle inspection uncovers discrepancy between VIN listed on title/bill of sale and the VIN plate on the dashboard or the manufacturer's door sticker.
• No lienholder is reported for new or high-value vehicle.
• Vehicle title or authenticated bill of sale cannot be produced.
• Applicant is seeking new business coverage and has never been in any, or this type of business, in the past.
• Sound financial backing for the business to be insured is not apparent.
• Loss payee is not a legitimate lending institution.

© 2001 Allied Insurance, a member of Nationwide Insurance, All Rights Reserved

Tague Alliance - New California Work Comp Laws

Tague Alliance and SIAA member agencies who write commercial insurance and specifically Workers Compensation Insurance in California need to stay somewhat current on the plethora of new laws that were recently signed into law by Governor Jerry Brown. Take a look at this great article from the Insurance Journal:

http://www.insurancejournal.com/news/west/2011/10/19/220793.htm

California Workers’ Comp Institute Compiles List of Bills Signed by Brown

October 19, 2011

The California Workers’ Compensation Institute on Wednesday released a review and compilation of 20 bills signed by Gov. Jerry Brown in 2001.

The bills include:

• AB 55, Gatto: Extension of the right of entertainment production companies to use payroll firms as the employer of record to pay taxes, union dues and workers’ compensation.

• AB 228, Fuentes: Allows State Compensation Insurance Fund a limited ability to cover out-of-state employees of California employers.

• AB 300, Ma: Sets new requirements for safety, training and sanitation for those engaged in the business of tattooing, body piercing or permanent cosmetics.

• AB 335, Solorio: Calls for benefit notice changes in the content and delivery of benefit notices and other injured worker information.

• AB 378 Solorio: Sets guidelines for dispensing compound drugs to injured workers, defines when such drugs are reimbursable and reimbursement amounts, and eliminates incentives for doctors to refer patients to pharmacies in which they or their families have a financial interest.

• AB 397, Monning: Requires contractors to show proof of workers’ compensation coverage or exempt status (if they have no employees) when renewing their license with the state.

• AB 436, Solorio: Authorizes a $4.3 million loan from the Uninsured Employers Benefit Trust to the State Public Works Enforcement Fund to enforce prevailing wage requirements on public works projects.

• AB 469, Swanson: Requires private employers to give a new written notice to nonexempt new hires, with detailed wage and employment information and the name, address, and phone number of the workers’ compensation insurance carrier.

• AB 507, Hayashi: Revises the “Pain Patient’s Bill of Rights” and removes Department of Justice’s authority to: 1) employ a physician to interview and examine patients about the prescription, possession, or use of controlled substances; 2) require the patient to submit to the interview and exam; and 3) allow the physician to testify in administrative proceedings.

• AB 585, Fong: Extends the work-related cancer presumption given to firefighters and fire and rescue services coordinators to active firefighting members of a fire department serving NASA.

• AB 878, Berryhill: Requires workers’ compensation insurers to report the cancellation of a contractor’s policy to the State Contractors License Board and makes the violation of workers’ compensation laws a cause for disciplinary action by the License Board.

• AB 1136, Swanson: Requires general acute care hospitals to set up safe patient handling programs with trained lift teams or lift support staff and back injury prevention plans by Jan. 1, 2013.

• AB 1168, Pan: Requires the state to adopt by Jan. 1, 2013 a fee schedule setting maximum fees for services by vocational experts used in workers’ compensation claims

• AB 1263, Williams: Prohibits former State Compensation Insurance Fund (SCIF) officers and directors from lobbying SCIF for two years after their employment ends, and requires that any consulting they do for SCIF be approved by SCIF’s board.

• AB 1425, Assembly Ins. Committee: Allows insurers to disclose with the quote (prior to acceptance) that a policyholder’s premium may be refunded on other than a pro rata basis.

• AB 1426, Solorio: Abolishes the workers’ compensation court administrator position and redistributes the duties to the Department of Workers’ Compensation administrative director and the appeals board.

• SB 457, Calderon: Requires the WCAB to determine, based on liens filed, reimbursement for benefits paid or services provided by self-insured employee welfare benefit plans, notwithstanding the Official Medical Fee Schedule, when payment for self-procured medical costs for a work injury or illness is awarded.

• SB 459, Corbett: Prohibits and sets penalties for the willful misclassification of employees as independent contractors.

• SB 684, Corbett: For policies issued or renewed on or after July 1, 2012, workers’ comp insurers must disclose when a quote is provided if they want to use arbitration to resolve disputes and make explicit that businesses do not have to agree to out-of-state arbitration/dispute resolution.

• SB 826, Leno: Allows the DWC to fine claims administrators up to $5,000 per year for violating workers’ compensation information system data reporting requirements and calls for an annual report showing claims administrator reporting compliance rates.

Tague Alliance 2010 Year-End Meeting

Tague Alliance hosted our members and some of our partner insurance carriers. The event was a success and our members learned a little bit about using Facebook as a marketing tool. Tague Alliance distributed over $40,000 in PMSF earned from our national SIAA insurance company relationships.

The meeting presented great opportunity for our members to network with our partner insurance companies. Our semi-annual business meetings provide everyone a chance to come together to build relationships and expand horizons.

Change of Plans - Tague Insurance Fan of the Week #23

Our boss told us to close the office early today, so we followed his instructions. Due to our early closing we had to change our plans for picking this week's winner. Watch the video below to see if you are the lucky Tague Insurance Fan of the Week.

Happy New Year's Eve and have a safe and fun time!

Tague Alliance - Renter's Insurance Needs

Attention: Tague Alliance members. It is very important to make sure you are consistently cross-selling your auto accounts. Many people are renters and they do not realize that they can get Renter's Insurance virtually for free. How you may ask? Almost every insurance carrier provides large multi-policy discounts. Many times these discounts fully or almost fully offset the annual cost of Renter's Insurance.

Consider working on all of your mono-line auto policies by cross-selling Renter's Insurance to your clients. The article below will give you some info to use in your marketing effort.

Renters’ Insurance Needs

Persons who live in apartments or rent a residence are fortunate. Most insurance companies can protect their assets and belongings by using a policy that is designed especially for tenants. Typical policies cover your possessions for common causes of loss, additional living expenses related to making other living arrangements, medical expenses for treating people injured on your premises and, of course, lawsuits.

Property Coverage
Protection under a standard renters policy is on an actual cash value basis (item’s replacement cost less depreciation).

Example: Stewart’s kitchen catches fire and his five year old refrigerator is destroyed. A new model of the refrigerator costs $750. His insurance company pays him $162, explaining that it’s the effect of five years of deteriorating value. Most companies offer coverage on a replacement cost basis if you purchase a separate endorsement.

Theft Limitations
Certain types of property are quite vulnerable to being stolen, therefore very limited coverage is available for items such as jewelry, furs, gems, gold, silverware, pewterware, money, securities, guns and accessories. Protection can be increased by adding additional coverage to the tenant policy or by purchasing a personal article floater policy.

Additional Living Expenses
A typical tenant policy provides a limit equal to 20% of your contents insurance limit. If your contents limit is $15,000, then your additional living expenses limit will be $3,000.

Liability Coverage
Liability insurance covers you for injury you cause to others and for damage to property that belongs to others. The policy also provides for the cost of a lawyer (if necessary) and most court costs. Examples of liability claims include: slips and falls; beaning a neighbor’s child with a baseball; hitting a golfer with your errant hook shot; or a friend breaking her hip when she trips on a skateboard your child left on the stairs.

COPYRIGHT: Insurance Publishing Plus, Inc. 1998, 2001, 2009

Best Pumpkin Vote: Tague Insurance Fan of the Week #14

The Tague Team fan captains (Jen, Robin, and Tony) each had a baby pumpkin with which they could do as they chose. The goal was to get the most votes from our Facebook fans. Jen did a spectacular decorative carving on her pumpkin and the majority of voters chose her pumpkin. I guess our fans have an eye for beauty and skill!!!

Since Jen was the winning fan captain she drew this week's winning fan...watch the video below and stay tuned each week for the Tague Insurance Fan of the Week drawing.

Fan Bounce - Facebook Fan of the Week #10

Tague Alliance and Tague Insurance bring you another Facebook Fan drawing. Tague Insurance loves rewarding our fans. Some of them are auto insurance or home insurance clients, some are fans that do not currently work with Tague Insurance. We look forward to these fun drawings each week and hope that our Facebook Fans find them funny and enjoyable.

Congrats to this week's winner, Christopher Rusk. You won a $25.00 Visa card!!!

Fan Crush - Tague Insurance Fan of the Week Drawing #9

Tague loves rewarding our Facebook Fans with our weekly Fan of the Week drawing. Congratulations to this week's winner. Please visit our Facebook Fan page and click the "Like" button.

Tague Alliance Partnership Agency Uses Facebook

Tague Insurance, the partnership agency of Tague Alliance, began fully engaging clients and prospects through the use Facebook. The concept is to reach out to clients and prospects in a way that brings a personality to the agency and that builds relationships. See a sampling of what Tague Insurance has been doing recently:

 

 

 

 

Paperless Insurance Agency

In the world of the independent insurance agency being efficient is one major key to being profitable. One of the easiest ways to improve agency work flow and efficiency is to be utilize paperless filing.

Tague Alliance offers our members access to management systems that allow client documents to be scanned or files attached directly to the client within the management system. If you are an independent insurance agent who is not currently paperless you should seriously consider making the switch from paper files.

The switch is not extremely expensive as you only need a decent scanner (scans at least 30ppm with sheet feeder) and a management system that allows you to attach files directly to the client. Look into the Fijitsu and the Evolution client management system.

There are many reasons beside efficiency to be paperless. With an online based management system with client documents attached you reduce potential E&O issues with date and time stamping, tracking of who is doing what on client files, no worries of fire destroying paper files, and your data is backed redundantly without you having to manage a server.

Remember, as an agency owner you need to look for every way possible to drive efficiency in your organization with the goal of continually improving your bottom line profit. Tague Alliance offers our members help with these types of issues. Call or email us if you are interested in these types of insurance agent resources.

Tague Alliance is a SIAA master agency with 52 member agencies.

Tague Alliance - Top 5 Things To Grow When Slow

Just a few short years ago I managed our Personal Lines department at Tague Insurance. I can tell you that our focus was relentless on cross-selling, account rounding, and generating as much business from our existing book as possible. If you have been in business for a number of years then you have a ton of opportunity ripe for the picking in your client base. EFT is a great money saver for clients and a huge boost to your retention. I have seen estimates from various studies that showed increased retention on clients with EFT ranging from 8-14%!

Sometimes though it is easier to take advice from an industry expert rather than me who manages Tague Alliance and SIAA member agencies. Dan King, a well know agency development trainer from Travelers, has an article he wrote in National Underwriter and it is his list of the top five things an agent can do when things are slow.

Check out 'Tis The Season To Get A Jump On 2010.

So go put his advice to work and I can guarantee you will see results from your efforts, and if you ever have a chance to attend one of Dan King's Agency Development classes do so.

Tony Veteto

Tague Alliance

An SIAA Master Agency

www.taguealliance.com