Agent Ethics
Work Ethics
Chapter 2
Ethics on the Job
From the time our children are small, we try to teach them a “work ethic.” A work ethic is the desire to produce or create something positive. A work ethic involves more than simply showing up every day, giving eight hours of time, and collecting a paycheck. A work ethic is the desire to produce.
As members of the human race, each of us faces ethical or moral issues daily. Most are relatively small (should I tell my boss what I really think of her dress?), but some will be large and significant (if I don’t tell the financial rating, he will probably buy this). Everyone faces decisions of honesty, but most lines of work do not affect individuals to the extent that the insurance industry can. Insurance agents deal with the public trust and certainly their futures. Every insurance and annuity contract has the option of changing the future for those involved. A policy that is poorly fitted to the client can cause severe financial difficulty in the future. Besides the premium that will have been wasted on a poor product, if it does not perform as expected it can cost the insured thousands of dollars in lost security.
Some types of ethical decisions have no clear-cut lines, while others do. Some have clear-cut lines because of laws or state regulations. Some decisions are individual opinions. Where there are no clear state or federal regulations, consumers depend upon their agents to be ethical and trained enabling them to offer solutions or suggest products that will meet the client’s needs.
Education Requirements
Most states now require agents to obtain some amount of continuing education credit hours. These are referred to as CE hours (CE standing for continuing education). Most agents understand the reasons for this and agree with the concept. While it is true that experience is a valuable teacher, the insurance industry experiences constant legislation changes. Education will highlight many of those changes. It also offers the opportunity to broaden one’s knowledge, which is beneficial to agents and clients alike. Only those agents who care enough about their own responsibility and reputation will be prepared through education.
Most consumers want those they deal with to be educated on a continual basis. We expect the man who repairs our cars to be up on the latest technology. We expect the attorney who handles our estate planning to be well versed in the newest laws. We expect our surgeon to know the most recent medical breakthroughs. Why shouldn’t our clients also expect us to know the latest in insurance designs?
As every agent knows, the only way to stay on top of things is to continually read company literature and industry brochures. Insurance companies are probably a better source than any other for new trends or updated information on existing policies.
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Insurance companies are probably better sources than any other for new trends or updated information on existing policies. |
Mandated education can also be valuable. Agents often complain that courses seem repetitious. This can be a problem if the agent tries to order only subject matter that they are already familiar with. Some areas of insurance do not see great change, so courses will be similar to each other. Some types of education are structured by state regulating authorities, which limit the course content.
Agents who live in states that mandate education, as most now do, must take responsibility for their requirements in a timely manner. No agent should wait until the last hour before seeking it out. It is true that time can easily get away from us, but there is a simple solution: a short note inserted in an appointment calendar at least three months prior to renewal. Of course, ordering it is simply the first step. It must also be completed and returned to the providing company.
Education providers are not responsible for an agent’s time requirements. Nor are education providers required to keep a list of previously taken CE courses. It is the agent’s responsibility to begin their education and complete it well before the actual due date. Some providers do keep records of previously taken courses and will alert the agent if they are repeating. However, this is a courtesy and not a state requirement. Agents should keep a file with a copy of each Certificate of Completion in it. The most recent course taken should be on top and the oldest on the bottom. Many agents also prefer to tab the edges by year. That way, an agent can see at a glance the year in which each course was taken. If an agent is audited by the state, the agent must provide proof of all completed CE courses. That means they must have copies of their certificates accessible.
Why would an insurance agent be audited by the state? There are many reasons. If the company they purchased their education through felt that unethical behavior existed in completing the test, the state may be notified. Some states actually require that the education provider notify them when suspected cheating occurs. Seldom will the state tell the agent if the education provider has reported them. The state will simply request all records.
The state might also simply audit on a hit-or-miss basis. In other words, periodically agent records are pulled at random and then audited.
Many audits are initiated due to consumer’s complaints. In this case, an audit of the agent’s education is simply a part of the overall investigation.
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Audits will often occur because consumers have been complaining about an agent’s activities. |
Agents are not the only ones who can be investigated. Education companies can also be investigated if wrongful activity is suspected or reported. Usually this would involve a company that did not follow required procedures, such as reporting suspected cases of fraud. More likely, however, it would be because the state suspected that the education company was providing the answers to the test questions in an unethical manner. Because of this, companies seldom let cheating go on among agents. They are better off not doing business with the agent at all than risking the loss of their license with the state.
When an agent copies someone else’s test or cheats in some other manner, they will find that the state is not sympathetic to their reasons. No matter how compelling the reason may seem, the state will expect agents to act ethically. Would consumers want it any other way?
States do change educational requirements periodically. Not all states will notify agents individually. Luckily, insurance companies do a fairly good job of printing changes in their newsletters. Of course, this means an agent must read them!
Insurance agents are not the only professionals who must complete mandated education. No matter what the profession happens to be, education is an important part of keeping current.
Responsibility
Each agent is responsible for his or her education. It is not the responsibility of their boss, secretary, spouse, or coworker to keep up with state requirements.
What can be done when time requirements are due, but the education is not completed? As an education provider we often hear requests that cannot be granted. This happens in all types of businesses, of course. The first step is realizing that education providers follow state requirements. As such, we are not always in a position to deliver special requests. Some requests are simply illegal (backdating a certificate of completion, for example) while others are against company policy. Whatever the reason, the person requesting the service will show his or her professionalism (or the lack of it) by their response.
At one time it was considered assertive to insist upon receiving one’s own way. Those who did not insist were considered less capable in some way. While assertive behavior certainly has a place in some situations, assertiveness should not be confused with aggression. Let’s look at the definitions:
Assert: 1. To state positively; affirm; declare.
2. To maintain as a right or claim, as by words or force - to assert oneself: to put forward and defend one’s own rights or claims.
Aggress: to undertake an attack; begin a quarrel.
Aggressive: 1. Of or characterized by aggression or attack.
2. Disposed to vigorous activity; assertive movement.
As you can see, there is a difference between the two. Stating positively, one’s position can be done with elegance, calm and logic. I can think of no way to be elegant, calm, and logical while undertaking a verbal attack. I inserted the word ‘verbal’ because that is the usual form of aggression. Of course, we have seen news accounts where aggression has been physical, often with deadly consequences. Luckily, that is not the normal situation. Most people, in fact, will be much more aggressive over the telephone or while driving than they will be face-to-face. When aggression can be displayed without actual eye contact many people become more abusive than they normally would. It has been suggested that people are venting their frustrations with their daily lives by ranting at people on telephones or driving aggressively. Because there is no face-to-face contact, these people feel safer being verbally abusive or demanding. Many of these same people would not act so offensively in person.
Is there some emotional release in demanding something from someone else? There may well be, but it still has no place in the professional’s life. If some service is needed or just desired, the likelihood of receiving that service is much greater when requested in a logical, positive manner. In fact, research shows that people respond much better to a positive approach. People are more likely to respond positively when approached positively and negatively when approached negatively.
Even our language reflects the way we feel. When medication is given for an illness, we say: “He responded to the medication.” If the medication does not work and produces an allergy, we say: “He reacted to the medication.” We respond to the positive but react to the negative.
A former employee of a state insurance department relayed this story:
“Anytime an agent called and became rude or demanding, I put them on the bottom of the stack. Of course, I didn’t tell them that; I stayed pleasant and took their verbal abuse. Some agents would call repeatedly because what they wanted still wasn’t done fast enough to suit them. Each time they were abusive, I again put their file on the bottom of my ‘to do’ stack. Most were never smart enough to figure this out.”
Of course, this passive aggressive response would seem to perpetuate the problem rather than solve it. Most of us would prefer a solution. In business, a solution is always the goal.
Each of us is aware of own personal responsibility. We know when we are asking someone else to fix what we failed to properly do. These demands often have to do with our failure to properly comply with personal responsibility. As an educator, we see the same failures over and over (often from the same people year after year): a failure to complete the required education in a timely manner. Field agents see the failure to properly prepare financially for retirement. While we cannot correct an agent’s failure to acquire education, the field agent can contribute to correcting an inadequate retirement income.
When an individual is requesting a service or an item and the clerk says they cannot deliver what is desired, is there a way to solve the problem? There are several options, all of which can be utilized with calm and dignity.
1. Is the clerk simply unable to personally comply with your request? Sometimes a supervisor can approve what a clerk cannot. Rather than rant and rave at the clerk, the positive approach would be to politely ask for the supervisor.
2. If the supervisor also declines to comply with your request, ask for the reasons why. Sometimes the explanation opens new avenues that will work for both you and the business.
3. Make sure that you have adequately explained the reasons for your request. By doing so, the clerk can often offer alternatives that will also work for you. In addition, your explanation will demonstrate that you are a reasonable person. Reasonable people are more likely to receive reasonable treatment.
4. Ask the simple question that is all too often forgotten: “What would you recommend that I do?” The clerk or supervisor often has alternative options that will solve your problem.
5. If the business you are calling is unable to deliver what you want, is there another entity that could do so? Sometimes we waste our efforts because we are requesting the service from the wrong place.
6. Many times, what we are requesting can be met, but what do we do if it simply cannot be done? In the words of actor John Wayne: “Take it like a man.” Sometimes we must accept “no.” Even children realize that they can’t have everything. Adults must also accept that fact.
At no time should the process of asking for a service (which is often more along the lines of a personal favor) include rudeness, shouting, profanity, or sarcasm. Politeness and poise are marks of a professional. When rudeness does rear its ugly head, the professional agent must not take it personally. Rude people are indiscriminate; they treat all with rudeness, so it is never personal.
When We Have Failed to Do Something Important
We’ve all done it at some point in our lives. We have failed to do something that we should have or failed to do it in a timely manner. Maybe we forgot to remember our mother’s birthday or maybe we failed to complete our education early enough. Whatever the case may be, the fault lies with us. Someone is disappointed in us; we feel guilty.
Luckily our Mother will probably forgive us. A simple apology with a late gift will solve the problem. Other failures will not be so easy to fix.
How a person addresses their failures often says much more about them than how they address their successes. It is easy to bow and say, “Thank you.” It is much more difficult to lower our head and say: “I’m sorry.” Pride is often blamed for this, but it probably involves much more than pride. There seems to be an instinctive desire in the human race to place blame elsewhere. Even children know this. From the time a child realizes that blame can be shifted, they will attempt to do so. If parents fail to halt the blame-shifting, the habit easily continues into adulthood. Unfortunately, children often see their parents shifting blame, so what else would we expect of them?
Everyone probably tries to shift blame at some point. It might be when we are stopped for speeding (who wants a ticket?), when we return a pair of pants because we gained weight (it must have shrunk), or when we ordered our education with only one week before it was due (my secretary is supposed to keep track of this). Whatever the reason, it would be surprising to find a person who has never attempted to shift the blame from oneself to another.
Sometimes it seems innocent to shift blame if it will not really hurt anyone else. “My dog ate my homework” is not likely to bring harm to the pet. The danger in blame-shifting is not that it might harm another (although that can be a possibility), but rather that it might set the pattern for years to come. This might especially be true if the blame-shifting is successful.
Setting Up Professional Standards
Every industry has professional standards. Some of the standards are written while others are simply understood and accepted. What begins as an unwritten standard often becomes a law when those in the industry do not voluntarily follow it.
Some industries especially need moral codes since it affects people so profoundly. Insurance is one of those industries (insurance is the most highly regulated industry in the US). As a result, there are many insurance laws on the books; some of those laws are federal and some of them are state. Generally, it is not the written laws that a course on ethics would address. Written laws must be followed in order to work in the profession. Codes of conduct are typically unwritten laws. If they are followed with a fair amount of uniformity, they may never develop into written laws.
Every day of our lives we make moral decisions. In fact, not making any decision at all is even a decision. The choice to take a stand or postpone taking a stand is still a decision. There is no illusion here that a course on ethics will affect a person to any large degree. Only if the reader purposefully chooses to take one path or another as a result of this course will it have any effect. This is true of all things. Simply being exposed to the information will not have any effect. It must be a decision of the reader to go one direction or another.
Even if a number of people read the same information on ethics with the intent of becoming more ethical, it does not mean that each person will reach the same ethical conclusion. Ethics is not a concrete subject. Generally, it is accepted that a person who does what they feel is right is behaving ethically, even if there is disagreement on the action itself. Even when there is disagreement, however, those disagreements are within the framework of ethics. No course in ethics can ever eliminate disagreements. However, since ethical decisions are made on the basis of reason rather than authority, the scope of disagreement is usually a difference in thought rather than fact.
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Since ethical decisions are made on the basis of reason rather than authority, the scope of disagreement is usually a difference in thought rather than fact. |
Questions as Well as Answers
Ethical issues are rarely black and white. There tends to be many gray areas. Because ethics are a matter of reason rather than authority, people will disagree. Ethical discussions are complicated because there are so many questions involved and not always a lot of answers that can be set down by fact.
A strong example of the complications of ethical issues has to do with abortion. There are many good moral people on both sides of the issue and strong opinions exist on both sides. As with all ethical issues, it is not a matter of one side being right and the other side being wrong. Rather it is a matter of personal feelings of what is ethical and what is not.
Because the nature of ethics is, in itself, a perpetual discussion, the topic often falls to philosophers who enjoy spending endless hours on such things. The general worker does not have the time or the inclination to spend time debating ethical questions. However, they do live moral issues, which are ethics on a daily basis.
Ethics has to do with an individual’s perceptions of right and wrong; it is not necessary for others or society as a whole to agree with them. However, since most elements of insurance are legislated by either the federal or state government, few elements of it have to do with perceptions of right and wrong. Instead, it has to do with following the law. Most elements of insurance are affected by law in one way or another.
Example:
Desmond Drake works for an agency that mass mails target groups of consumers. In this case, they have mailed individuals aged 30 to 60 for a specific product. If the consumer is interested, he or she fills out a response card and returns it. The return card specifically says an agent will call on them. Even though they return the card once an agent arrives at their door many people will not admit them.
When Desmond approaches the door, he knows he must be allowed to enter the consumer’s home if he is to sell his products. Which of the following options would you select?
1. When his knock is answered: “Good morning Mrs. Green. My name is Desmond Drake. I represent XYZ Company and I am here in response to the card you returned to us. Is this your writing or your husband’s?”
2. When his knock is answered: “Good morning Mrs. Green. My name is Desmond Drake. I am here regarding the changes that are coming in your retirement plan. Are you aware of those changes?”
3. When his knock is answered: “Good morning Mrs. Green. I represent your retirement plan. May I come in?”
4. When his knock is answered: “Good morning Mrs. Green. I am licensed by the state to talk to you about your retirement planning. Is now a good time for you?”
Agents are required to identify themselves and their companies. Any response that does not include both is in violation of statute. Unless Desmond Drake does specifically represent the consumer’s retirement program, he would also be in violation by stating that he did. Finally, while he is licensed by the state (insurance license) this statement is clearly meant to misrepresent who and what Desmond is.
Agents are exposed to ethical choices every day:
1. “I get a better commission with this company, but the product is not as good as it could be.”
2. “If I accidentally leave out the financial rating my client will never know, and it really is a good company. I’m sure the rating will go up”
3. “Even though this consumer has a good company already, I will give better service, so I am going to replace it with my product. I need the commission.”
4. “I will temporarily use the premium my client gave me, but just until I get my commission check; then I will send in the premium to the insurance company.”
5. “Good morning, Mr. Brown. Your agent is not in at the moment, but I can help you with this. I’ll be sure to give this to your agent once he comes in.”
6. “I see you have had some heart related illness this last year. However, the company is not concerned since you are doing so well now; it is not really necessary to write the information down on your application.”
Agents have a moral obligation to their client, their insurers and certainly to themselves and their families. While agents must be able to earn enough commission to pay their own bills, they owe it to their clients and the companies they license with to treat all situations ethically. This means they must disclose complete information to their insurers on the applications and to their clients when representing a product. Therefore:
1. At no time should the commission earned be the deciding factor when presenting a product to a client.
2. Even if the agent perceives an insurer to be a good company, he or she is always obligated to give their clients the financial rating of the company. The choice is not the agent’s; it is the applicants.
3. The desire for a commission is never an acceptable reason to replace an existing product. While some products should be replaced with an updated better version, many others should not be. This would especially be true if increased age affected the replacing policy.
4. It is never legal to use premium collected for personal use – NEVER. There are no circumstances in which this would be acceptable or legal.
5. If Mr. Brown’s business is given to his established agent, then the agent who helped him has done a service to both the agent and his client. If, on the other hand, the agent who helped Mr. Brown signs his own name to the application and collects the commission himself he is not ethical. He told Mr. Brown that he would give this to his regular agent. Not only will he announce himself as untrustworthy and a liar (Mr. Brown’s agent is bound to discover the new policy), but also it is likely that Mr. Brown will cancel the policy when he discovers the trick that was played on him. Mr. Brown may even file a complaint with the state’s insurance department. We often hear that commission sale industries like ours pit one representative against another. While this is true (insurance is a replacement business) that does not mean that it is permissible to lie to a client. If the second agent intends to keep the commission, he is ethically bound to let Mr. Brown know this so he can decide which agent he wishes to deal with. If Mr. Brown’s established agent has already presented the product and agent number two is merely taking advantage of that, then he has no claim at all to the commission – even if he is honest about taking it.
6. Agents have a moral and legal responsibility to their insurers. If an insurer asks for medical information the agent is morally and legally bound to supply it. This goes beyond simply sliding the application across the table to the applicant; the agent must review the information for accuracy. Under no circumstances is it permissible to omit required information.
Professional Conduct
Talk about opinions! When it concerns professional conduct just about everyone has one. If we want to keep it simple, we can state that professional conduct is that which gives pride to the profession represented by the individual.
All of us want to feel pride in what we do and who we are. What we do and who we are is interrelated, of course. Even though no one is the job they do, the job they do does reflect on who they are. If one’s job is to sweep the floor, they are reflected in the way they perform the task. If the floor is kept spotless, that says a great deal about the worker. If the floor is never really clean, that also says a great deal. It is the difference between going to work for a paycheck and going to work for the company. The one who goes to work for a paycheck has little regard for the job they do and will probably never perform splendidly. The one who is proud of their profession and employer will perform far better than the individual who has no sense of profession or pride. As a result, their work performance will likely be outstanding.
Each business has a responsibility to the worker in this regard. It is hard to work “for the company” if the company is mean-spirited and uncaring. Many American companies are beginning to realize this. As a result, they are looking at the needs of their employees in new ways. Childcare centers are springing up, as well as job-sharing and other innovative alternatives. Since most insurance agents are self-employed, however, these types of things are probably not going to be part of their work experience.
For the self-employed “the company” is themselves. How the agent dresses, talks to others and carries through on their work reflects on “the company” (their own person). As a result, one would think that it would be especially important for them to be professional in every sense. That is not always the case. Other factors enter the picture: greed, frustration, fear, anxiety, selfishness, or any other human trait.
Few people consider ethics in absolutely every decision that is made. Perhaps it would become too cumbersome. When every business or personal decision must have ethical consequences weighed, it could become difficult to make any decision at all. Because of this, most people simply have a basic code of right and wrong that they follow. Of course, there will be mistakes made, but that is also part of life. If mistakes alter future decisions, the mistake actually becomes part of growth and is, therefore, a positive thing. A person who becomes fearful of mistakes cannot experience growth and growth is often a moral path. To stand still without growth is perhaps unethical in itself. Ignorance is often the term used for someone who quits growing.
Ethics in The Workplace
We are seeing increasingly more states adopt an ethics requirement as part of the mandated professional education requirements. While we feel most agents are ethical there must be a reason the states feel this is a necessary requirement. It is likely that state insurance departments realize that many agents work on their own without benefit of a sponsoring organization. Of course, having a sponsoring organization is no guarantee that ethical guidelines will be instituted. Either way, by mandating such education there will be no excuse available to unethical actions.
While any profession calls for ethical standards, some professions especially affect others, with insurance being one of those. An essential characteristic of an ethical person is one who is willing to put the interests of others before themselves. Since insurance deals with financial matters that can affect a person’s well-being many years later, insurance must adhere to moral guidelines. An insurance agent who considers their commissions over the results of the policies written may affect his or her clients in very adverse ways.
While we would like to believe that all agents are ethical, we know that is not true. Regardless of the profession, there are those who do not live up to moral expectations. Why does one person choose to behave ethically while another does not?
There are many reasons why one person chooses to be ethical and another one does not. Of course, no one actually declares: “I am going to be unethical.” Rather, it is a progress of continually thinking of oneself over others. After a period of time, this selfishness becomes a habit, a way of living each day. When this attitude is part of the way one conducts business, it becomes especially serious since it affects not only the salesperson but also all their clients.
Philosophers give many reasons why a person acts in their own best interest rather than in the interest of others. The general public knows the main reason, however: simple greed. The individual states have mandated laws to protect the consumer from those that are most flagrantly greedy, but it is impossible to legislate greed completely out of our society; it will always exist. That is why states also try to educate the consumer so that they can avoid the worst of salespeople.
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It is unfortunate that the few in the industry that are unethical cause those who try to do a good job to jump through the same legal hoops. |
It is unfortunate that the few in the industry that are unethical cause those who try to do a good job to jump the same legal hoops. While they vary from state to state, these legal hoops often include increased industry education, specialized education (such as ethics), replacement and specialized forms, and consumer laws. Consumer legislation attempts to protect the consumer from the unethical salesperson or the unethical business entity.
Not only individuals have an obligation to be ethical. Business entities also have such an obligation. It could be argued that a business entity is nothing more than a group of people running the company. The ethical standards of each person involved will reflect itself in how the company performs. Therefore, it could be said that individual morality eliminates the need for business morality. When business ethics are discussed, it usually is looking at the business as an entity and not as a group of individuals. In the newspapers we often see stories of corporate greed. Although the corporation is made up of individuals, their group purpose has to do with the prospering of the company itself. The company is an entity rather than a person, so the group of individuals seeks to give financial gain to the entity. Of course, the entity then feeds back the financial gain to those in power.
Rather than argue the point of whether a corporation can be greedy, there is a more productive line of thought. It really makes no difference whether corporate greed exists (versus individual greed) since the results are the same. When a company dumps chemicals into our water system, or a garbage company dumps our garbage into a landscape, or a financial company misleads the elderly into unsound investments, someone somewhere or some company somewhere profits. The company that dumps the chemicals does not have to pay for proper disposal; the garbage company that dumps our city’s garbage improperly does not have to pay to protect the environment; the financial company that takes in thousands of dollars with no remorse for those who will lose all demonstrate corporate greed. Nearly always, corporate greed is intended to ultimately reward individuals who benefit financially.
When greed brings profits, why would an individual or a company choose ethical standards for themselves? For some, it is a desire to demonstrate to others the importance of leaving behind a legacy of strength and stability. After all, it is the stronger person who behaves morally. Greed is often an easier path to follow. For others, it is a belief in Christianity or another faith that dictates certain behavior. Even for those who may not have a religious factor involved, ethical behavior may simply be seen as the correct way to live. For these people, there is a strong belief in right and wrong.
Not too surprisingly, many people say they believe in ethical behavior for a very logical reason: if no one behaves morally, they themselves will become a victim in some way. It might be their water that is ruined by chemicals, their land that is soiled by garbage, or their money that is taken in a financial scam. These people believe that everyone and every company need to be ethical as a means of self-protection. Believing this, they also feel that they themselves must be ethical.
It is not surprising, either, to realize that no one person or controlling group can state what is ethical for each person. Ethics are not always the same for every person or business. Ethics are more often tied to beliefs than to laws, although laws often reflect the morals of the time. Our goal is not to define what is ethical, but rather to offer tools the reader may use to define their own ethical paths. Any ethical concept we might suggest would have flaws, anyway, depending upon a person’s point of view.
Ethical Excellence
People often fail to recognize that moral excellence directly benefits a company and all its workers. If the company publicly sells stock, then moral excellence also benefits every stockholder.
Many philosophers argue that companies, being entities, cannot be greedy or immoral in any way. Only those in power may be. Just as greed belongs to individuals rather than companies, excellence also belongs to individuals rather than companies. Therefore, a company that is progressive and offers values for its employees is really projecting the views of one or more individuals who run the company. Individuals, not companies, create ethics.
Ethics in the workplace does not happen by accident, although there may be occasional explosions of excellence that happen without design. For a uniform and consistent atmosphere of ethical excellence to exist, it must be created and continued by those in charge. Few companies are lucky enough to have a person or panel of people with enough vision to realize the need for moral excellence in the workplace. Certainly, every executive wants loyal and honest workers. What they often fail to realize is that such workers will only stay where they feel their values are recognized. Where is the incentive for a worker to be loyal to the company if the company is not also loyal in return?
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For a uniform and consistent atmosphere of ethical excellence to exist, it must be created and continued by those in charge. |
There are some dramatic examples of companies formed on a sound basis of moral excellence, such as Ben & Jerry’s Ice Cream, but most companies’ form for other reasons. All companies have a goal of profit (they would all go broke otherwise plunging their employees into unemployment), but this goal must be balanced on a foundation of morality.
It might be thought by some that morality and business do not go together. Nothing could be more wrong. In fact, businesses that do integrate the two are more likely to be successful in the long run. Why? Because they are more likely to find and keep valuable employees that will stay long term. Strong moral leaders are willing to do what is right even if the line of profit may not be as high. Moral leaders will run their business according to specific guidelines, including environmental factors, worker safety, and long-term goals for both the company and the employees.
All companies follow some type of strategy. The goals may vary and how employees are considered may vary, but there will be some kind of strategy. Some companies originally built on excellence found themselves in financial danger when new leadership allowed the company to lose sight of moral excellence. As workers became discouraged and lost pride in their performance, products lost their quality. No company can continue without a united workforce that is proud of what they do. Some company executives attempt to correct problems with confusing or alienating policy memos and dictums. Consider U-Haul who canceled agreements with its independent dealer networks and tried to open company-owned moving centers. This greedy move forever changed the good working relationship they had shared with trusting dealerships. In contrast, Hewlett-Packard, a well-known maker of laser printers, instilled a sense of shared purpose and technological innovation by encouraging entrepreneurs within its own ranks. Many other organizations lost ground during this same period to new rival companies.
Just as customers recognize excellence when they see it and so do workers. All successful companies require both customers and employees. Business today is vastly different than it was fifty years ago. Today’s companies must work in a partnership with their employees so that the third element (clients) can be continually maintained. Many companies do not seem to understand this. Even insurance companies have been known to find reasons to terminate insurance agents once their client base was built up, keeping the business of course, but without paying commissions. Many states eventually passed legislation to stop this practice.
In the past business worked on six basic principles:
1. set goals and establish policy and procedures,
2. organize, motivate, and control workers,
3. analyze situations and formulate operating plans,
4. respond to change through new strategies,
5. implement new policies & procedures, and
6. produce the desired profit line.
While these basic principles still apply some new skills are also desired, including:
1. creativity,
2. acknowledgment of worker’s needs,
3. versatility,
4. focus on future trends,
5. integration of skills, and
6. the ability to listen effectively.
Asking the Right Questions
We often admire people for their skills with others, often referred to as “people skills.” What we often fail to notice is a simple procedure these successful people follow: they seem to know the right questions to ask. This is true both professionally and socially. This ability is often called “insight.” Such people seem to instinctively know how to get others talking.
While asking the right questions is important, it would do little good if a second quality did not follow: the ability to listen. There is no skill more important in today’s world than the ability to listen to others. Listening does not simply mean keeping quiet while another talks; it means absorbing what the other person says. Many professionals like to state back what was said in their own words. This allows them to retain important information. The ability to retain is especially important to the salesperson that must focus on the desires and needs of their clients. In the book Creating Excellence by Craig Hickman and Michael Silva, they state, “executives lacking insight see either the forest or the trees, but never both.”
Listening: The Route to Success
For the salesperson, listening is the only route to success. Without it, the salesperson might hang on for a period of time, but he or she will never really experience the thrill of success. Not all great listeners are salespeople, of course. Oprah Winfrey is one of the greatest listeners of all time and this skill has made her rich and famous. She took the art of listening (and sensitive response which only happens because she listens) and built a television show around it. Although she is gifted in many ways, it is her ability to listen and understand that has made her best known among the talk shows. Others have also capitalized on their ability to listen including Dr. Phil and Larry King.
Salespeople are often taught a specific format which they are supposed to follow during their presentation. Too often the salesperson concentrates so hard on following this format that they simply shut out everything else. The salesperson is so afraid that they will make a major error in the words they themselves say that they forget to listen to the words of their potential client. Certainly, it is important to follow a format for the presentation. Following a set presentation format is even legal protection for the agent since it demonstrates a pattern, which can be relied upon if a lawsuit is filed. However, the presentation must leave room for the client’s needs as well. Only by listening to these needs will the presentation ultimately be successful.
A salesman once said in exasperation “I hate it when I have spent time explaining what I’m offering and the client says, ‘It sounds great, but I have to think about it.’ What is there to think about? It’s a great product!”
This salesman made a common mistake: he had spent so much time listening to himself (his presentation) that he failed to listen to the potential client. Since his presentation had satisfied his needs, he saw no reason to satisfy the needs of the client. What are the client’s needs? No one can tell you. Only the person listening can. Each client’s needs are individual and only by listening when they speak can you discover them. These needs are labeled many things. Sales promoters often call them objections. How often have you heard the statement that an objection is merely “a way of telling you the consumer needs more information?” While this may be true, the truest statement is simpler than that. An objection is the client speaking. Are you listening? Are you asking the right questions? Unless you listen, it is impossible to even know the right questions. Let’s consider this scenario:
Ralph is selling burial insurance to a woman who is 30 years old and single (although she is engaged to be married in six months). The woman, Sally, did mail in a card and then set up an appointment from a telephone call that Ralph made, so there was some point of interest on Sally’s part.
Ralph came on time for the appointment, he was dressed professionally, and he was a gentleman in every way. The scene could not have been more positive for a sale to be made. So why, at the end of the presentation, did Sally tell Ralph she just could not decide yet? Ralph felt it was due to her young age. Most of the people he dealt with were older, established and married. Please note that Ralph “felt” it was due to her young age. He never actually asked.
In fact, Ralph missed an opportunity to ask many questions prior to beginning his presentation. Perhaps he had already thought the sale was doomed from the beginning due to some preconceived idea about what his buyers should be. Perhaps he merely was concentrating so hard on his presentation that he failed to listen to what Sally said. Perhaps his mind was on something entirely different than the present situation. For whatever reason, Ralph lost a sale that should have happened. As he left, Sally felt he was nice and professional, but she had no urge to buy anything.
What questions could Ralph have asked?
1. “Why did you mail in this response card?”
2. “Does anyone in your family currently have a burial plan through an insurance company or elsewhere?”
3. “Have you discussed this with your fiancée?”
4. “What other plans have you made for your death?”
5. “Do you have a specific interest that I should address?”
6. “Is there anything specific that you want to talk about?”
Of course, Ralph could not allow Sally to simply ramble on. He needs to keep some type of control over the selling presentation, but that does not mean that he must do all the talking. If the conversation becomes sidetracked, by simply asking a question regarding the sales product Ralph can bring the conversation back to the topic. Unless he listens to the answers, however, asking questions will do little good. While listening, if Ralph is uncertain of what Sally means, he must say so. This will bring further clarification. Through this clarification, all of Sally’s concerns will be answered and she will be more likely to purchase the product and the product is more likely to appropriately address her concerns.
Patience, Patience, Patience!
Sales is always about patience, whether we like it or not. It is true that, for some, sales are a natural thing. For these individuals, no struggle is apparent from the first day in the selling field. For most, however, building a career in sales means doing many necessary things, including obtaining product education, establishing a client base, and learning how to serve existing clients.
No matter what profession a person is in, it must be considered for the long term. Otherwise, it is not a profession, but simply an occupation for today. Long term planning has to do with many aspects, including planning for oneself in retirement. It is amazing the number of people who sell retirement planning packages and yet have put nothing in place for themselves. It is difficult to believe that the agent who has not prepared his or her own financial future is in any position to help another prepare theirs.
Sales seminars often tell those attending to “picture in our minds what they want for their futures.” This can be a valuable tool, but it should never allow individuals to lose sight of what they must do for themselves. Simply wanting, wishing, and hoping (which this picture technique can turn into) will never take the place of strategic planning. If sales were easy, everyone would be doing it. Therefore, it stands to reason that building a successful sales career is difficult, demanding, and sometimes downright frustrating! Any type of excellence, whether it is in sports, business, or personal relationships requires effort. That is why it is so important that ethics be a part of the plans. Without a direct decision to be ethical, it would be very easy to get caught up in all the other aspects.
Ethics can often be forgotten when quick-fix solutions are sought. While some things may have a simple fast solution, if the solution is not based on fundamentals of right and wrong, the solution is anything but permanent.
Customer Satisfaction
Perhaps nothing is more difficult than dealing with the public. Each person brings their own individual thoughts and expectations, some of which are not well expressed. Few individuals have actually received any training on how to deal with people. Individuals do so on a hit-or-miss basis drawing upon their past experiences. Training is more often centered on the technical parts of the jobs. Certainly, people need to understand the products. No one is disputing that. However, that is only half of what agents do. The other half is providing customer satisfaction.
There is one other aspect of relating to people that should be stated: working well with each other at the workplace. This includes coworkers, managers, and those in support jobs. It even includes relating to workers in other companies that relate to our jobs. Without the support and cooperation of internal people it would be difficult to provide the satisfaction the clients need. It is unfortunate that so many people seem unable to deal effectively without making demands. When internal relationships run smoothly, so will everything else.
Why should individuals attempt to deal pleasantly with others? Besides making any job easier, people are also likely to feel better physically when things are pleasant. Study after study has shown that excessive anger harms people physically. Blood pressures and heart disease are higher in angry people. When individuals can be positive in their approach to others, they also seem to accomplish more in less time. Arguing takes up an incredible amount of time. In addition, once a person is agitated, it takes longer to get back into a positive flow of production.
Agents expect to accumulate an increasing number of clients, but agents are seldom prepared for the rejection that is part of acquiring clients. If agents are not equipped to move on following a negative experience, that negativity is likely to follow them to the next home.
The Difficult Customer
No matter what our profession, there are going to be some people who make any situation difficult. Sometimes, no matter how hard we try we will not be able to satisfy the difficult customer, whether a current client or a prospective one. When this happens, we must be able to keep our own perspective so that their negativity does not spill over into our lives. If we allow their negativity to affect us, it is likely that there will be a domino effect. Each person will pass the negative feelings on to the next.
Ironically, the toughest people we deal with are sometimes a coworker or a family member. Their negativity is constantly present making it difficult for us to remain positive. If the person is a coworker, it is less difficult because we can keep the relationship professional rather than personal. It is much more difficult when the negative person is a family member. Often it seems we have no escape unless we learn to deal with them on some distant level. This can be extremely difficult if the family member is a spouse, child or even a parent.
Anytime a difficult or argumentative person must be dealt with, it is very important to keep the subject on the topic itself. Never should the topic sway to yourself or them. The types of issues will vary depending upon your job, but often they tend to be among several common situations:
1. Someone is blaming you for problems over which you have no control.
2. Someone is pressuring you over his or her responsibilities.
3. Someone is unwilling to provide information, which you need in order to do your job correctly.
4. Someone expects you to change something that you have no ability to change.
5. Someone is angry about a situation you did not participate in and have no control over.
6. Someone wants you to take the blame for his or her shortcomings.
Most people can be told what is and is not possible and deal with it. With a difficult person, this is not the case. The difficult person will continue to demand what cannot be given. There is no solution with someone who will not listen and insists they receive what they want. Despite the difficulty of the situation, it is important to remain professional and remember not to take it personally. This is easier said than done, but there really is no other course of action that is feasible. When the difficulty relates to a policy that was written, it might be possible to call the home office to see if they can suggest something that will satisfy your client. If there is nothing available to solve the problem, it is sometimes best to terminate the policy. If this is the case, be sure to have the client request the termination in writing. Agents should never (and I do mean never) cancel a policy unless the request is put in writing. A written request provides legal protection for the agent.
Overall, the practical approach is always the professional one. Such an approach also saves time because the professional engages in no arguing. The person at the other end may still be trying to, but the professional refuses to join in. At all times, the professional must stay on the topic. Never resort to name calling or criticism. It simply is not productive. A professional approach often calms the difficult person, but if it does not, simply solving the problem might help. Remaining calm and professional is necessary when solving any problem – business or personal. Of course, the difficult person will never admit he or she is wrong so the professional must realize that such people are simply part of our world, whether we like it or not.
Preparing for the Inevitable
No one can be prepared for every situation, but we can prepare for some of the more obvious ones. We can do this by rehearsing what we would say or do in a given situation. In many ways, this is similar to practicing our sales presentation in front of a mirror. In this case, however, the ethically motivated person is practicing the situations that might occur at work or in the sales field. The agent might practice telling a coworker that he or she is not willing to let another person copy their test. The agent might practice telling the boss that other agents are copying signatures. Whatever the case may be, by rehearsing what will be said, there will be less stress when it is carried out.
Luckily, most people are ethical most of the time. Probably no one is ethical every moment, but overall people do tend to do what is right. Even so, it does help if a person visualizes what they would do in a given situation. More than that, it means an individual must actually take a moment to decide what their moral position is. By visualizing their moral position, it actually helps to cement it.
Using Specific Language
Every salesperson knows that some words calm, while other words incite. Therefore, when dealing with a difficult situation, word usage is very important. Excellence at anything comes from experience. Therefore, the more one consciously uses good word choices, the better they will become at it. Eventually, certain word choices will become automatic, a habit.
In any situation, a warm friendly voice is calming. It is difficult to define a warm voice, but we know one when we hear it. Such a voice is even and unemotional but gives the tones of someone happy to deal with us. It is this feeling that the person at the other end of the line is happy to be talking to us that makes us feel more cooperative. Some customer representatives do all that is necessary to help us, but they have an edge of irritation to their voice that is unmistakable. Of course, we do not know whom they just dealt with. If it was someone difficult, then the negativity of the previous conversation was brought into the next, like a line of dominos falling one by one.
There are some things one can do to ease tension and bring a better voice to the conversation, whether by telephone or in person. Deep breathing definitely helps. The act of breathing in, holding it momentarily, and then letting the air out slowly, will release tension. Once that tension is released, your voice will appear calmer. Physical exercise also works, but that is more difficult to do in some situations.
As we said, some words are better choices than others. When someone is requesting a service, it is always better to say: “I will” than it is to say: “I’ll try.” Of course, it is important to be able to do what is asked than to promise what cannot be given. Even if an immediate answer cannot be given, if the client at least knows what steps you will be taking, they will be satisfied. Using the words “I will” also sets your own pace because you have told both yourself and the client what you will be doing. It is important that you follow through on any “I will” words. Otherwise, the next time the words are used, there will not be any confidence in them.
Do not use words that blame, even when blame seems called for. The fact that someone did not call on a timely basis is obvious; stating that fact does not help. Rather than say: “You should have”, it is better to say: “will you?” and offer a solution or a possibility. Any words that begin with “you should have . .” puts the person on the defensive. A defensive person quickly becomes irritable and difficult.
In business, the goal is always to solve. Therefore, any words that help this process make sense. Sometimes it is necessary to tell a person “no” but there are many things that can follow that negative word that will soften the context. For example, “No, Mr. Johnson, we are not able to fax that to you, but you can have it sent overnight. Would that help you out?” Even though Mr. Johnson was told “no” it was followed with a possible solution.
If the word “no” can be eliminated entirely, that is even better. For example: “Let’s see what we can do, Mr. Johnson. How about sending it overnight to you. That way, even though it can’t be faxed, you would still have it tomorrow. Would that help you out?” Everyone, including us, respond better to what can be done than to what cannot be. Anytime the words “you can” or “I can” are used, the image is positive whereas “no” is always negative.
Successful salespeople quickly understand the importance of words. The right words can take a person from impatience to cooperation. People always want to know the reasons behind an action or thought. Simply saying “no” is closed and negative, but giving a reason often opens new possibilities. Those new possibilities may turn a “no” into a new solution.
Finally, simply letting a client know how things are progressing will keep tempers down. Even if no news has come forth, a telephone call will put a client at ease because he or she knows you have not forgotten them. It is a wise professional that keeps in touch when a solution is being formulated. In fact, clients are more likely to refer an agent who solved a recent problem for them.
End of Chapter 2