Connecting Your Employees to Your Mission
Not too long ago, the Council of Insurance Agents & Brokers released their Commercial Property/Casualty Market Report for the fourth quarter of 2020. The report was extensive, but there were a few key takeaways that I thought were important to share here. Although these takeaways are based on data from five months ago, they give us a good idea of what to expect for the first couple quarters of 2021. First, the fourth quarter of 2020 was the 13th quarter in a rowwith premium increases across the board. The average increase among accounts of all sizes was 10.7%, but when divided by size — large, medium, and small — it becomes clear that the large and medium accounts bore the brunt of this. Premiums for large and medium accounts went up 13.7% and 11.7% respectively, while smaller accounts only went up by 6.7%. The premium increase for small accounts was down from second- and third- quarter increases (7.3% and 7.1%, respectively). Second, this was the third consecutive quarter that all lines of premiums increased. The average increase was 10.2%, down from an increase of 11.3% in the third quarter of 2020, however. Umbrella saw the highest premium increase (21.3%) followed by D&O liability (14.7%) and commercial property (12.9%). Third, most respondents to the Council’s survey declared that they had seen a “significant” decrease in underwriting capacity. This was particularly the case for umbrella insurance, where 90% of respondents reported a decrease, and half of those respondents called the decrease significant. As the above data shows, the COVID-19 pandemic greatly affected the insurance industry in 2020 in the areas of pricing, availability of coverage, renewals, and underwriting trends. As 2021 continues and more people get vaccinated, we’re hopeful that as the pandemic wanes, so will its negative impacts on many aspects of the insurance industry.
MAKING YOUR PASSIONS THEIR PASSIONS
Your business might be doing well, but if your workforce doesn’t feel any sort of personal connection to your business’s mission, that could prevent lasting success. You want to boost employee morale and make them happy about their work. To reinvigorate your employees’ passion for your business’s mission, try a few of these tips. Walk the talk. Patagonia CEO Yvon Chouinard decided to make his products out of organic cotton after he saw how industrially grown cotton was hurting the environment. It cost more to do that, but he stuck to Patagonia’s mission of creating environmentally friendly products. If you’re not willing to sacrifice for your mission, then it’s not your mission — and your employees will know it. Make it clear. Make sure everyone at your company knows exactly what your mission is. Only when employees have a clear understanding of the goal can they actually abide by it. If your mission statement can be interpreted in multiple ways, clarify it throughout all levels of your business. Speak passionately about it. While you want the mission itself to be exciting, even the most intriguing of mission statements will be DOA if your delivery doesn’t convey your excitement. Humans are emotional creatures, so connecting with your employees emotionally in regard to your mission is just as important as the mission itself. Make it personal. While you might think tying your personal story to the company’s mission seems narcissistic, the truth is that your team wants to hear your story. People like stories, and if you can convey yours with honesty and humility, no one will think you’re an egoist. Re-work it. If your mission doesn’t seem to be inspiring passion in your workforce, then maybe it’s time to tweak it a little bit. Whether you’re just starting in business or have had the same mission statement for 10 years, a new mission lived out, made clear, and made personal by you can spark a newfound appreciation for your business among your employees.
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