Looking to replace retiring talent? Hire them again
Learn three ways that agency owners can leverage the talents of retired or soon-to-be-retired professionals.
The average baby boomer retired last year and in just seven short years, they will all be over age 65, according to the U.S. Census. This has a variety of implications for insurance agencies. How will this change their client base and their needs? What will the size of the personal lines market look like? And of course, what does all this mean for staffing?
While artificial intelligence, trends in immigration and/or a contracting economy may one day lead to decreased demand for agency employees, for now, agency owners and managers face an intractable and growing problem: Where to find enough employees.
The insurance agency owner’s problem with changing demographics is in some ways worse than other business owners across other industries because of the highly personal and technical nature of insurance sales. Clients of the agency are largely there because they’ve developed a relationship with the people there and value that relationship. Frequently, these clients have deep, long-established relationships with agency team members. Compounding this issue is the technical nature of insurance and the learning curve required to master its intricacies.
All of this isn’t new. It’s been discussed at great length in our trade press for the last decade. What has changed is that the problem is now no longer theoretical for many managers, it’s acute.
What can you do about it? Consider tapping into the talent who have left or plan to leave your agency to ensure continuity of service and operations. Here are a few best practices:
1. Don’t let them leave. This seems obvious but agency employees of a certain age are bailing in ever-increasing numbers. Start your retention strategy by having sincere conversations with your employees, perhaps as early as their 50s, about their long-term plans. Often, people “retire” because they have other things they want to prioritize in their lives like travel or time with family. They don’t realize they can have it all with a part-time or flexible work option provided by your agency. If you value them, keep them.
When John, who had worked closely with me for many years, reached 65, we talked about his plans. That led to his becoming increasingly part-time. Now, a decade later, he still handles several large accounts. His clients love him, he earns extra income, and he thinks his health is better, his mind is sharper and his sense of purpose has increased because of his work. John will leave the agency eventually, but we’ve had considerable time to prepare for that and when he does go, it will have a much smaller impact on the agency. By then, his replacement will have had the time to gain the technical knowledge and build the relationships necessary to replace him.
2. Hire them back. We’ve all had the experience of bringing a former client back into the agency after they learned the sales pitch from our competitor was merely a siren’s song. Retirement is often just that too. Tired of headaches, lack of flexibility or other problems with work, people often think retirement looks like heaven. But after a period with reduced income, a bucket list checked off and perhaps boredom becoming a real problem, many would jump at the chance to be productive again. Here, we’re talking about anyone, who has left the workforce, not simply those who were former employees.
For example, Dan had a long and distinguished career in insurance as a producer, agency owner and ultimately association executive. He joined us, post-retirement, for what he referred to as his “third career.” In a flexible, part-time role he made huge contributions for over a decade before moving on to his “fourth career.”
3. Do things differently. Use the talent, skill and time of your experienced employees differently this time. Hiring older workers, especially those near, at or beyond retirement is only a bridge solution. But during this period, you can focus on redefining the work inside the agency so that traditional job roles and descriptions are modified to fit the individual’s capabilities. This doesn’t just apply to older workers, but can apply to anyone on your team. You will see productivity magnified, as well as an increase in job satisfaction, culture and loyalty.
(Courtesy photo)
Marty came to us in her early 60s from another agency. She struggled with our automation, but she stood out as a team member. Her encouraging, caring, attitude was infectious. Eventually, we found the perfect position for her. In fact, we created it for her, tailoring the job to what Dan Sullivan calls her “unique ability.” She became our best recruiter. We eventually applied a similar approach to how everyone worked in our organization, improving our culture tremendously.
Entrepreneurs react to challenges by seeking out opportunities. These opportunities require thinking differently and experimentation. They aren’t without risks. Ours is a people business and we face no greater challenge than finding, maintaining and eventually replacing the people who keep our clients satisfied and our agencies profitable.
The solution is not out of reach. Let’s look back to the quality talent we’ve seen come through our doors and explore how we might negotiate more time with them in a way that appeals to them and continues to bring our agencies success.
Tony Caldwell is an author, speaker and mentor who has helped independent agents create over 250 independent insurance agencies. Learn more by visiting www.tonycaldwell.net or contacting him at tonyc@oneagentsalliance.net.
Opinions expressed here are the author’s own.
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