Insurance industry recruitment is becoming more urgent as the baby boomer generation retires. According to McKinsey & Company, nearly 500,000 insurance professionals will retire between 2008 and 2018. As a result, insurance companies will face major shortages in top talent. In many cases, they are now turning to candidates from the younger generation (ages 18 to 27), often referred to as Millennials—or Generation Y—to fill these gaps.

Insurers are focused on attracting this new talent, yet they struggle to find ways to appeal to this generation. Although the industry is relatively recession-proof and offers interesting opportunities and growth potential, there is generally a lack of interest among young professionals in pursuing a career in insurance. As a result, insurance companies must communicate the rewards of a career in the industry to help combat these misconceptions and close this talent gap.

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

• Meaningful, satisfying and challenging work they will enjoy.
• Collaborative work environments.
• Employers that demonstrate social responsibility through workplace efforts.

By understanding millennials’ work preferences, carriers can then implement strategies that both attract and retain young talent. 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 to know that there is a lot more to insurance than meets the eye. By offering an onsite recruitment fair, hiring managers have a chance to educate them about the benefits of a career in the insurance industry, the employment perks and the variety of jobs available. Hiring managers from every area of the business should be represented in order to showcase the rich mix of employment options available. This includes managers from actuarial, claims, commercial lines, call centers, finance, human resources, information technology, legal, life, personal lines, project management office and sales and marketing.
2. Internship program: A summer internship program is another initiative companies should use to attract young jobseekers. The internship program should include four crucial areas: corporate projects, networking, work experience and professional growth. Through an internship program, Millennials will receive an opportunity to network with each other, meet with senior leaders and connect with young professional groups. This internship structure gives Millennials a much more positive, engaging and meaningful employment experience, which they are seeking.  
3. Relationships with local high schools/colleges: It is essential to introduce the industry to young students and connect with young talent who are already interested in joining the insurance industry. This can be accomplished by building relationships with local high schools and colleges. By helping schools develop insurance curriculums, students will then have an opportunity to learn how their skills can lead to a rewarding career in insurance. This ultimately makes recruiting the next generation of insurance employees easier, since these students will be exposed to the industry early on.

Strategies to Retain Young Talent

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

1. Associate Resource Groups (ARGs): The Griffith Insurance Education Foundation has found that Millennials want to continue to learn and that these programs, including mentoring, are expected from employers. By offering employees an option to join Associate Resource Groups (ARGs), such as women in leadership and young professionals, this will help create an environment that fosters learning, innovation and growth, which is essential to Millennials. ARGs give employees an opportunity to learn from one another on a personal and professional level, contribute to the business outside of their current role and feel vested in the business as they foster new and innovative ideas that will help move the company forward.  
2. Emerging leader and future executive programs: Griffith also reports that Millennials expect ongoing opportunities for training and development. For this reason, it is important to offer an emerging leader program. This program should involve senior leader mentorship, business simulation, community outreach projects and internal business projects. A future executive program should also be available to those who are already on the leadership track, but want additional exposure to elements of business simulation, executive mentorship and project management. These programs will appeal to millennials who want a broader emersion into leadership and are necessary tools for professional development and employee retention.  
3. Community service opportunities: Millennials are not only examining a company for its professional development opportunities, benefits and salary, but are also interested in an employer who values social responsibility. In fact, a new report by Nielsen found that 70 percent of Generation Y say a company’s commitment to the community would influence their decision to work there. As a result, it is important for carriers to have a philanthropic focus. The first step in adopting the “do the right thing” principle is by offering company-sponsored volunteer opportunities that help charitable organizations in the community, such as Meals-on-Wheels and Big Brothers/Sisters. To encourage volunteerism, companies can also set-up a recognition program to acknowledge employees’ volunteer efforts. In addition to community service opportunities, agencies can help retain employees by offering flexible work environments, free fitness centers and fun employee events such as chili cook-offs and volleyball tournaments.

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