As more insurance agents retire, many are considering agency successor plans and looking to recruit young agents. However, successfully recruiting from the upcoming generation of Millennials may require a change in strategy.
The Current Generational Shift
The latest report from global management consulting firm McKinsey & Co. estimates that the average age of an insurance agent in the United States is 59, and one quarter of the industry’s employees will retire by 2018.
At the same time, Millennials will replace Baby Boomers as the largest living generation. The Census Bureau projects that the Millennial population was 74.8 million in 2014. By 2015 Millennials will increase in size to 75.3 million and become the biggest group.
A Change in Values and Motivators
Millennials are often perceived as workers who are no longer fully motivated by employee benefits, salary, and loyalty alone. Many Millennials will also want a defined career path, an opportunity for growth, and to feel like they are making a difference. Successful agencies will integrate these factors into their operations and recruiting.
What can agencies can do to attract and retain young agents?
Create an Enjoyable Workplace. Millennials place a high value on a pleasing workplace. When possible, promote a flexible work environment, and anticipate the changes in your company culture that the Millennials will bring.
Prepare Millennials. The new generation needs to be educated on the insurance industry in general. Develop a mentorship program to train young potential agents.
Leverage Experienced Workers. Creating a mentorship program with experienced agents is an effective way to transfer and capitalize on the value of seasoned employees.
Offer Niche Programs. Niche programs create a real opportunity for young agents to build their book of business, also helping to differentiate them with specialized knowledge in unique industry segments. MiniCo offers niche-related resources and marketing materials for new agents. Contact MiniCo’s Customer Care Department at email@example.com or 800-447-8383.
Provide a Career Path. Provide the meaning and gratification that many Millennials seek by defining internal opportunities for advancement within the organization.
Utilize Their Digital Fluency. As the first generation to grow up immersed in technology, make sure that your agencies systems are up to date. Not only is this attractive to young talent, it also helps agencies to maximize the return on their native digital skills.