I was driving to work after celebrating a birthdaymilestone, reflecting on my life and career. Both are filled withmany accomplishments and also some failures, which I fondly referto as my “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 aMonday morning, but an inevitable part of life, both personally andprofessionally.

Across the Generational Divide
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 wasa cakewalk 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 Challengerdisaster.  I watched it on the news, glued to a woodenchair in my university's student union.  It was a day Iwill always remember.  (Yes Millennials, the televisionwas in color, but did not have a remote control.)

Now this brings us to the newest generation entering our claimsorganizations, the Millennials. Born from 1981 to 2000,they are 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 thisgeneration include September 11, the Enron corporate scandal,Hurricane Katrina, 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 uniquelyvaluable to the table.  I believe there is no right orwrong here, just differences based on our upbringing andexperiences.  So keep in mind, if you are going tocriticize a Millennial, you're likely a generation that wasresponsible 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 Millennialgeneration, there are five characteristics that make them uniquefrom other generations. 

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 forrecognition.  More than any other generation before them,the Millennials crave recognition for their efforts. They grew upin an environment where everyone receives a gold star for showingup to class or a medal for being on the soccer team, win or lose.What does this mean for claims management?  For anyonecoaching Millennials, it means providing more frequent feedback,especially praise on a regular basis.  It also meansproviding more robust performance management, development plans andmentoring 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 importantfor our industry to improve our claims technology if we want toattract and retain the best talent this generation has tooffer.  We need to adopt more advanced claims managementsystems, integrated estimating software programs, web conferencingcapabilities and mature claims processes that optimize bothcustomer and employee satisfaction. 

Fourth is the concept that “paying one's dues and having tenureis old-fashioned.”  Millennials dislike rigid timetablesthat limit their advancement.  This generation is notintimidated by senior management. They want to be viewed as equalsby their peers, and they value having their voices heard. Theyexpect a clear understanding of career paths and the opportunity toadvance as quickly as their achievements merit. This can be achallenge in our current economy, when position openings arescarce. But I believe that employers with a culture of meritocracywill win at attracting 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 willremember is how many people we helped on their way to a bettercareer because of our interest and commitment to theirdevelopment.