What Is a Team Bonus in Insurance Agency Pay?
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A team bonus pays every eligible person when the team reaches a shared goal.
What it is
It ties each person's pay to the group's result, so a producer who has hit their own number still has a reason to help the team finish the month.
Setting one up takes three choices:
- The goal: the office's premium, the team's policy count, or one product line.
- Who is eligible: everyone, only producers, or only those who also hit their own goal.
- The amount: the same for each person, or more for those who wrote more.
A worked example
Example. The goal is $400,000 of premium this month, and each eligible person earns $250. The office writes $420,000. Eight people are eligible, so each earns $250 and the bonus costs the agency $2,000.
When it backfires
- Free riders: someone who missed their own goal still earns it, and the others notice. Making the personal goal part of eligibility fixes it.
- A goal that is always met: it stops being a reward and becomes expected pay.
- A goal that is never met: people stop believing in it.
How Producify works it out
In Producify's Team Goal, when combined production reaches the goal, each eligible member earns the amount.
Once, ever pays one time, the first time the goal is reached. Every month the goal is met pays the amount once in any month the team reaches the goal, never once per multiple. See Add a Team Goal bonus.
Frequently Asked Questions
Should team bonuses include service and admin staff?
Often yes. They help keep the customers and support the producers, and including them makes the office one team.
Can a team bonus be a penalty for missing?
Avoid it. A team penalty breeds resentment, not effort: use team bonuses only to reward.
Pay the team for a team result
Team Goal is one of the rule cards in Producify's commission plan builder.
Producify is commission tracking software for independent and captive insurance agencies.