A new generation of independent agents calls for new hiring tactics
Younger insurance professionals are looking for meaning in their work and stellar workplace culture — not just a paycheck.
The workforce is shifting toward younger generations, with 50% of the current insurance workforce set to retire in the next 15 years, which will leave 400,000 open positions, according to the Bureau of Labor Statistics. Upcoming leaders, Millennials and Gen Z workers, are poised to take over for their older professional counterparts, but workplace changes over the last few years combined with shifting worker expectations means agencies may have to change their tactics in order to attract this new generation of talent.
Liberty Mutual and Safeco recently surveyed over 730 agents for their 2022 Agency Growth Survey, which delved into agencies’ strategies for growth, including their hiring and recruiting practices. Seventy-five percent of agencies are currently recruiting, according to the survey, with the top recruiting methods including referrals and networking (80%), advertising online (42%), social media posting (39%) and hiring interns or college placements (20%). These recruiting numbers are up from their 2017 independent agent survey, when 65% of agencies said they were recruiting.
While this bump in recruitment is good news for job-seekers, it creates a great deal more competition for the best insurance talent, and the survey found that agencies with the most focus on growth and willingness to try new approaches to hiring and recruiting are reaping the benefits. Agencies who stated they are aiming for aggressive growth see an average revenue growth of 22% year-over-year, as opposed to just 9% for agencies aiming for slow-and steady-growth.
“Attractive workplace cultures don’t just happen, they are created. As a new generation enters the workforce and employee expectations continue to rise, those agencies that actively prioritize people, create values-driven cultures and offer the flexibility employees want will outgrow and out-hire their competitors,” Tyler Asher, president of independent agent distribution at Liberty Mutual and Safeco Insurance, is quoted in the survey report. “Now is the time for independent agents to get more intentional about their approach to finding and keeping talent.”
Of those surveyed, growth-focused agencies are more likely to focus on diversity in hiring (51%) than slow-and-steady agencies (33%), and are also almost twice as likely to hire remote employees.
Both of these elements – diversity in the workplace and flexibility – are among the top priorities for younger workers seeking employment. According to the survey, younger generations also value knowing their workplaces cares about their wellness, competitive pay and benefits and opportunities for career development. Ninety-five percent of Gen Z job seekers also said it is important they feel their work has meaning.
As such, when crafting job postings, it is important for agencies to emphasize initiatives and elements that make them an appealing choice for young insurance talent. Postings should mention any flexible work options (remote/hybrid), mentorship opportunities, unique benefits, information about the workplace culture and information about diversity and inclusion initiatives.
For more information about the state of recruiting in the independent agent space, as well as advice on how to tweak your agency’s hiring practices to better attract young talent, you can view Liberty Mutual and Safeco’s 2022 Agency Growth Study here.