Navigating Compensation in Family Business: Seeking Fair Pay in a Captive Insurance Agency
When it comes to working in a family-operated business, the conversation about compensation can be particularly complex. This is especially true if you are a family member contributing significantly to the company’s operations. If you’re currently working in a captive insurance agency, perhaps like I am in Arizona, and you’re starting to question whether you’re adequately compensated for your efforts, you’re not alone.
Balancing Work and Responsibilities
I have been a part of my father’s captive insurance agency for several years now. With licenses in both Property & Casualty and Life insurance, I’ve taken on an evolving role that encompasses a wide range of responsibilities. At present, I earn $17 per hour along with commissions—about 8% on auto policies and 15% on property policies.
My daily responsibilities are fairly divided. Half of my work is dedicated to servicing existing clients—handling cancellations, issuing certificates, managing phone inquiries, and addressing backend tasks that my father, the principal agent, often doesn’t have time for. The other half is spent on sales; while my father provides about ten leads each month, I take the initiative to generate additional leads and maximize the potential of our existing client base. My presence in the office is crucial for managing both phone communications and walk-in clients.
Evaluating Fair Compensation
It’s become increasingly clear to me that my current pay does not accurately reflect my licensing, the breadth of my responsibilities, or the value I contribute to the agency. I’m contemplating asking for a raise; however, I’m mindful of the fact that the agency has seen a decrease of approximately 25% in its client book in recent years, attributed largely to industry-wide rate increases. Fortunately, the volume of accounts appears to be stabilizing now, currently hovering around 2,000.
Seeking Guidance on Salary Expectations
In light of these circumstances, I find myself in need of advice on what constitutes a reasonable increase in salary or commission structure. I believe that discussing my contributions and the skills I bring to the table is essential for this negotiation.
If you have experience navigating similar situations within the insurance industry or family businesses, I would greatly appreciate your insights on how to approach this conversation. What do you think would be a fair compensation rate, given my qualifications and the work I perform? Your perspectives could be invaluable as I prepare to advocate for my worth in this evolving role.
