Insurance industry recruitment is becoming more urgent as thebaby boomer generation retires. According to McKinsey &Company, nearly 500,000 insurance professionals will retire between2008 and 2018. As a result, insurance companies will face majorshortages in top talent. In many cases, they are now turningto candidates from the younger generation (ages 18 to 27), oftenreferred to as Millennials—or Generation Y—to fill these gaps.

Insurers are focused on attracting this new talent, yet theystruggle to find ways to appeal to this generation.Although the industry is relatively recession-proof and offersinteresting opportunities and growth potential, thereis generally a lack of interest among young professionals inpursuing a career in insurance. As a result, insurance companiesmust communicate the rewards of a career in the industry to helpcombat these misconceptions and close this talent gap.

First, carriers must understand the Millennial workforce. According to a report by theGriffith Insurance Education Foundation, Millennials are lookingfor a work environment that offers:

• Meaningful, satisfying and challenging work they willenjoy.
• Collaborative work environments.
• Employers that demonstrate social responsibility throughworkplace efforts.

By understanding millennials’ work preferences, carriers canthen implement strategies that both attract and retain youngtalent. Here are a few examples of what we’re doing at Columbus,Ohio-based Grange Insurance to achieve this goal:

Strategies to Attract Millennials

1. Onsite recruitment fair: Millennials need toknow that there is a lot more to insurance than meets the eye. Byoffering an onsite recruitment fair, hiring managers have a chanceto educate them about the benefits of a career in the insuranceindustry, the employment perks and the variety of jobs available.Hiring managers from every area of the business should berepresented in order to showcase the rich mix of employment optionsavailable. This includes managers from actuarial, claims,commercial lines, call centers, finance, human resources,information technology, legal, life, personal lines, projectmanagement office and sales and marketing.
2. Internship program: A summer internshipprogram is another initiative companies should use to attract youngjobseekers. The internship program should include four crucialareas: corporate projects, networking, work experience andprofessional growth. Through an internship program, Millennialswill receive an opportunity to network with each other, meet withsenior leaders and connect with young professional groups. Thisinternship structure gives Millennials a much more positive,engaging and meaningful employment experience, which they areseeking.
3. Relationships with local highschools/colleges: It is essential to introduce theindustry to young students and connect with young talent who arealready interested in joining the insurance industry. This can beaccomplished by building relationships with local high schools andcolleges. By helping schools develop insurance curriculums,students will then have an opportunity to learn how their skillscan lead to a rewarding career in insurance. This ultimately makesrecruiting the next generation of insurance employees easier, sincethese students will be exposed to the industry early on.

Strategies to Retain Young Talent

Once insurance companies have hired Millennials, it is importantto offer additional benefits that will make them want to stickaround. For example:

1. Associate Resource Groups (ARGs): The GriffithInsurance Education Foundation has found that Millennials want tocontinue to learn and that these programs, including mentoring, areexpected from employers. By offering employees an option to joinAssociate Resource Groups (ARGs), such as women in leadership andyoung professionals, this will help create an environment thatfosters learning, innovation and growth, which is essential toMillennials. ARGs give employees an opportunity to learn from oneanother on a personal and professional level, contribute to thebusiness outside of their current role and feel vested in thebusiness as they foster new and innovative ideas that will helpmove the company forward.
2. Emerging leader and future executive programs:Griffith also reports that Millennials expect ongoing opportunitiesfor training and development. For this reason, it is important tooffer an emerging leader program. This program should involvesenior leader mentorship, business simulation, community outreachprojects and internal business projects. A future executive programshould also be available to those who are already on the leadershiptrack, but want additional exposure to elements of businesssimulation, executive mentorship and project management. Theseprograms will appeal to millennials who want a broader emersioninto leadership and are necessary tools for professionaldevelopment and employee retention.
3. Community service opportunities: Millennialsare not only examining a company for its professional developmentopportunities, benefits and salary, but are also interested in anemployer who values social responsibility. In fact, a new report byNielsen found that 70 percent of Generation Y say acompany’s commitment to the community would influence theirdecision to work there. As a result, it is important for carriersto have a philanthropic focus. The first step in adopting the “dothe right thing” principle is by offering company-sponsoredvolunteer opportunities that help charitable organizations in thecommunity, such as Meals-on-Wheels and Big Brothers/Sisters. Toencourage volunteerism, companies can also set-up a recognitionprogram to acknowledge employees’ volunteer efforts. In addition tocommunity service opportunities, agencies can help retain employeesby offering flexible work environments, free fitness centers andfun employee events such as chili cook-offs and volleyballtournaments.

With thousands of baby boomers retiring each year, the need fornew talent has never been greater. That’s why it’s critical forinsurance companies to start dedicating both time and energy intoattracting and retaining new talent to avoid this seriousemployment shortage. By investing in young professionals now,agencies will help close this talent gap and ensure the insurancebusiness thrives in the future as millennials take the helm.