How to engage millennials in the insurance industry
To attract and retain young insurance professionals, be honest about job demands and give them a path to success.
It’s no secret that the insurance industry is in the midst of a demographic crisis. We’ve known it was coming since we both joined the industry about 10 years ago, and we’ve been talking about it in every conference, magazine and website about insurance for at least the last 5 years, and yet the required changes have only started.
Related: 6 ways to tackle the insurance industry talent gap
You’ve all heard the numbers, so we won’t spend too much time on them here. Suffice it to say that some 80 million baby boomers are retiring at a clip of 10,000 per day, and they are over-represented in insurance, which has 30% more employees over 55 than the average industry. At the same time, the Gen Xers that follow them are 25% less in numbers, and many of them left the industry during the 2009 to 2012 recession.
Generational distinctions
Much like prior generations, millennials didn’t grow up wanting to work in insurance, with only 4% showing an interest in the industry. The difference is that prior generations fell into insurance and stayed out of loyalty, having found a great career. Plus, the taboo against changing companies made jumping around dangerous to one’s career.
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Millennials came into insurance by accident, too. But the industry has changed. Traditional entry-level jobs like multi-line claims adjusters (maybe even in the field) and personal lines/farm underwriters disappeared or became middle-level roles, so many millennials started careers in a call center, processing center, tiny exclusive personal lines agency or handling tiny claims over the phone.
These new entry level roles are very thin. They don’t allow millennials to ‘pay their dues’ and really learn what insurance is all about. It’s all too easy to look around a call center and come to the conclusion that there is simply no career path there, which causes many to beeline to the door and jump ship to other industries.
Related: Help wanted: Hiring the next generation
At the same time, the taboo on changing companies mostly disappeared, and the rise of LinkedIn means that those of us who are lucky enough to figure out how to grow as insurance professionals quickly may get recruited into other insurance companies.
Studies show that nowadays, loyal long-term employees end up earning 50% less than those who change jobs every 2 years. Taking all these things into account, it’s easy to see why retaining millennials in our industry is such a tough trick.
All is not lost
There are ways to perform the alchemy that turns a millennial into a loyal employee. The first thing you MUST do is be honest and explicit about what the job requires. If you’re recruiting for a high stress claims call center position, be honest about the number of hours, any required overtime (for example when catastrophes strike), and the achievement metrics. Also, be explicit about the awesome career options that this role opens up in the future, which may or may not be in the same department.
This is a mission-driven generation that wants to improve the world (while paying their student loans). Our industry’s mission of helping people get back on their feet is a perfect match for millennials, but they don’t know it. It’s up to us to tell them about the industry’s mission during the recruitment process, orientation and beyond.
It’s also up seasoned insurance pros to remind young employees how the job they’re doing is helping people, and how it’s helping open doors for better jobs in the future.
The recipe for success
Talking about potential jobs millennials might land in the future is only the beginning. Seasoned insurance pros also need to give young people the pathway to success:
- What are things the company values?
- Is it CPCU or CIC?
- Maybe it’s field experience, leadership development, or community involvement?
Whatever it is that your company tends to reward, make it explicit and help your millennials visualize a road map to growth within the company. Because nobody wants to linger in an entry-level role. This generation is committed to growth and afraid of getting downsized before they can gain enough skills and experience to land on their feet.
Related: Culture is key to attracting younger talent, but you can make it mutually beneficial
One more crucial step: Providing consistent feedback. Millennials grew up getting constant feedback from parents, counselors and coaches. While baby boomers tend to think that ‘no news is good news,’ millennials tend to assume that a lack of feedback means someone is about to get fired.
Doing at least the few of these things provides insurance businesses with a fighting chance to engage and retain younger employees.
Carly Burnham (carly.burnham@gmail.com) is chief executive officer at Insurance Nerds and new product development manager at Explore Information Services. Tony Canas (afcanas@gmail.com) is chief motivational officer at Insurance Nerds and a client advisor at The Jacobson Group.
To read more about how to engage and retain young professionals, check out the authors’ book, “Insuring Tomorrow: Engaging millennials in the Insurance Industry” (InsNerds, LLC, 2017).