Luring talent ... and keeping it: top performers, like other employees with job-achievement goals, want to know what's expected of them and how they are doing with their work.

Although many segments of the economy have a surplus of qualified people, the insurance distribution system has a shortage of job candidates. When searching for candidates, agencies know that not only must they pay a competitive wage, but that employees are also looking for perks, such as casual dress, flexible starting times and summer hours. In my interviews with agency employees, they say they value training programs, being recognized for their efforts by producers and managers, working in an upbeat environment and having a comfortable work station with the necessary computers and equipment.

Because it is so difficult to find people, using recruiters is usually necessary. But there is a difference between a search firm, which will look for qualified candidates, and a recruiter who merely provides resumes. Search firms generally cost more, but they will screen and interview candidates and work with you to prepare a job profile of skills and capabilities. To supplement the efforts of recruiters, some firms have implemented employee referral programs. These programs work best when a formal process is ha place to regularly identify candidates mad keep the pipeline hill. Agency employees should develop a list of the things they like about the agency and know the story they can tell about the benefits, working environment, perks or advancement opportunities the agency offers. They should also receive input from management about the skills and qualities the job candidate should have, as well as a description of the job opening.

Selecting Talent

Once the candidates are identified, they should be screened and interviewed to make sure they are a good fit for the job. Employees who never should have been hired will cost the agency, not just in salary and benefits, but also in the time of other employees who are involved with them. Behavioral interviewing can help managers make better hiring decisions because the interviewer focuses the questions on the experience of the candidate. Questions are designed to ask candidates to describe a situation or give an example of something they accomplished. Creating a standard list of questions used by all the agency interviewers assures that good interviewing is accomplished, and that the interviewing team can compare notes.

Pre-employment assessment tools also can avoid costly hiring mistakes. Insurance tests can identify the level of knowledge an individual has, but you also can test proficiency with the computer system or other commonly used software. Psychological testing can help assess sales or customer service capability and aptitude for the position. These tests, however, should not be used to make the hiring decision, but to provide additional information about the candidate's strengths and weaknesses.

Even with good screening, employees will turn down offers. Their compensation expectations may be unrealistic or they may be testing the marketplace. But in other cases, the offer is rejected because the agency made a poor impression. Interviewers may not be prepared, delay the process unnecessarily or tail to present the agency in a positive light.

The best recruiting agencies treat applicants like their customers, provide them with feedback in a timely way and communicate their hiring decision in a professional manner. Throughout the process, they make an effort to maintain an upbeat, positive relationship with all applicants.

Cultivating Appreciation

Top performers want to know what is expected of them in their jobs and how they are doing. They look forward to performance reviews because these discussions give them feedback. But they also provide an opportunity to talk about goals for the coming year and the training opportunities they should pursue to develop their skills and knowledge. Communication in general is important to modern employees. They want to know how their work fits into the big picture of the agency's vision and mission. They appreciate monthly meetings that provide updates on plans and new developments and where they can ask questions. They also are motivated by public and personal recognition. And finally, they respect organizations that ask for feedback on management and on the agency overall.

Attracting and retaining employees is as much a marketing issue as it is management. Developing and promoting a positive organization and reminding employees of the value of being part of it are critical to getting referrals and retaining talent. The best agencies are always recruiting (selling), both during the job interview and with employees.

Sharon Cunningham, a Best's Review columnist, is president of Business Management Group, a management consulting firm based in Hartford, Conn. She can be reached at [e-mail].