I was driving to work after celebrating a birthday milestone,reflecting on my life and career. Both are filled with manyaccomplishments and also some failures, which I fondly refer to asmy “learning opportunities.”

It was a beautiful spring morning. I remember the day vividly,with the sun shining and flowers blooming, something we do not seemuch of in northeast Ohio for most of the year. As I pulled my carinto the parking lot and turned off the ignition, I paused, took asip of my Starbuck's coffee and asked myself: Who will replaceus when we are gone? A pretty deep question for a Mondaymorning, but an inevitable part of life, both personally andprofessionally. When it comes right down to it, we are all caretakers of our teams and companies, hopingsomeday to retire from our work and leave it a better place thanwhen we came. I answered my own question about who will replace uswhen one word entered my mind…Millennials.

Also known as Generation Y, Millennials are the next wave of American workers. Born after1980, they are entering our workforce in greater numbers andreplacing the Baby Boomers who are beginning to retire. There areover 80 million Millennials, an incredible number, and they willdramatically shape the future of our claims organizations. To paintsome background of how Millennials are different from othergenerations, we must first look at the makeup of today's workforceand the world events that helped shape each generation's beliefsand values. We have four distinct generations in our currentworkforce:

The first is the “Silent Generation,” born somewhere between1922 and 1945. They are characterized as stable, loyal and having astrong work ethic. They grew up experiencing events such as theGreat Depression and World War II. My father is a product of thisgeneration. He is 82 years old, in great health, and still workspart-time at a small grocery store he started from scratch morethan 50 years ago. He enjoys telling me every holiday how he walked10 miles to and from school each day as a kid…uphill bothways! This is the same man who thought being drafted was acakewalk compared to working at his father's farm, because in themilitary, he had Sundays off and did not have to get up every daybefore dawn to milk the cows, but that's a whole other story.

The next generation is the Baby Boomers, born 1946 to1964. They are viewed as team players, dedicated andservice-oriented. They experienced the Vietnam War, theassassinations of Martin Luther King, Jr. and John F. Kennedy, andwatched the landing of the first man on the moon on a black &white television. (Yes, Millennials, many televisions were still inblack and white.)

Generation X is the workforce born 1965 to 1980. Theircharacteristics include being independent, creative, and willing tochallenge the status quo. This generation experienced the fall ofthe Berlin Wall, the AIDS epidemic, and the Challenger spaceshuttle disaster. Being a product of this generation, I can recallthe exact moment when I heard about the Challenger disaster. I watched it on the news, glued to a wooden chair in myuniversity's student union. It was a day I will alwaysremember. (Yes Millennials, the television was in color, butdid not have a remote control.)

Now this brings us to the newest generation entering our claimsorganizations, the Millennials. Born from 1981 to 2000, theyare described as optimistic, tech savvy and sociallyresponsible. Technology has heavily influenced thisgeneration, many growing up with a television in every room andbuds in their ears. Events that have shaped this generationinclude September 11, the Enron corporate scandal, HurricaneKatrina, and the advent of Facebook.

As Millennials enter our claims organizations, it is importantto understand their values and belief systems that will shape ourworkplace. Each generation brings something uniquely valuableto the table. I believe there is no right or wrong here, justdifferences based on our upbringing and experiences. So keepin mind, if you are going to criticize a Millennial, you're likelya generation that was responsible for helping to raise them.

Many of us will be responsible for managing, coaching, andmentoring Millennials. To be an effective coach, it is importantthat we understand what makes our employees tick, both individuallyand as a generation. When I view the Millennial generation,there are five characteristics that make them unique from othergenerations.

The first is work/life balance. Millennials want a well-balancedlife. This means flexible work arrangements, including flexiblehours and the ability to work from home. They are also looking fora casual, but professional work environment. What does this mean toclaims organizations? For us to effectively attract Millennials toour industry, we need to create flexible environments that address demands for residentadjusters positions, business casual attire and the occasionaljeans day.

The second characteristic is a need for recognition. Morethan any other generation before them, the Millennials craverecognition for their efforts. They grew up in an environment whereeveryone receives a gold star for showing up to class or a medalfor being on the soccer team, win or lose. What does this mean forclaims management? For anyone coaching Millennials, it meansproviding more frequent feedback, especially praise on a regularbasis. It also means providing more robust performancemanagement, development plans and mentoring programs.

The third trait is a desire to have the latest technology. Tounderstand the strong connection this generation has to technology,consider this: According to the Pew Research Center, 75 percent ofall Millennials have a profile on a social networking site and 83%sleep with their cell phone. The insurance industry, which largelydepends on legacy systems, is challenged to invest in the latestand greatest technology. I believe it will be important forour industry to improve our claims technology if we want to attractand retain the best talent this generation has to offer. Weneed to adopt more advanced claims management systems, integratedestimating software programs, web conferencing capabilities andmature claims processes that optimize both customer and employeesatisfaction.

Fourth is the concept that “paying one's dues and having tenureis old-fashioned.” Millennials dislike rigid timetables thatlimit their advancement. This generation is not intimidatedby senior management. They want to be viewed as equals by theirpeers, and they value having their voices heard. They expect aclear understanding of career paths and the opportunity to advanceas quickly as their achievements merit. This can be a challenge inour current economy, when position openings are scarce.But Ibelieve that employers with a culture of meritocracy will win atattracting and retaining Millennials.

As the job market improves and employees have more options, itwill be more important than ever that we provide clear andrewarding career paths if we want to retain our bestpeople.

Finally, Millennials have a strong desire to be part of acommunity of co-workers. They are exceptional networkers, work wellon teams, and want the opportunity for group socializing. (No, BabyBoomers, this does not mean wasting time around the water cooler.)This is about collaborating and sharing knowledge. I believe thecompanies that adopt social media capabilities, such as Facebookand Twitter, will have an advantage in this arena. In addition tobeing part of a group, Millennials are attracted to companies thatalign with their desire for community service. This meanssponsoring charitable works in the communities where we live and dobusiness. Millennials want a sense that their companysupports a higher purpose than just making widgets for the sake ofthe all mighty dollar.

Like individuals, each generation has unique traits andcharacteristics. As we prepare our organizations for the future,let's start by understanding the Millennial generation rather thantrying to convince them that our own generational beliefs aresomehow better. After all, Millennials will someday be leading ourorganizations and corporate America.

As you develop the next generation of claims talent for yourorganization, remember that one of the most rewarding things we cando in life is to teach or coach another person to take our place.Years from now, when we are hopefully enjoying our golden years inretirement, we won't remember the combined ratio in 1996 or ourloss adjustment expense ratio in 2003. What we will rememberis how many people we helped on their way to a better careerbecause of our interest and commitment to theirdevelopment.