Hiring the next generation

Although the economy has slowed hiring in every sector, recruitment is not an issue that is going to disappear anytime soon, especially for insurance. We hear it all the time--our industry is "graying." The majority of independent insurance agents is nearing retirement age and hasn't found qualified new employees to take over the reins. As executive director of four state affiliates of the Professional Insurance Agents, I hear frequent complaints from association members about the lack of young blood to introduce to the business.

It is surprising, really. Entry-level professions in an independent agency come with above-average salaries and ample growth opportunities. The industry is constantly expanding and is relatively recession proof--people always need insurance. So why the lack of young, interested new employees in a business that provides guaranteed opportunities and interesting work?

With the right information, it's logical that entry-level staff will flock to the industry. Insurance agents attend to their clients when the worst happens, providing both the financial and emotional means to pick up the pieces. And insurance can be a lucrative field, with huge growth potential. Young employees who start out as customer service representatives can find themselves owning their own agency a decade later. Additionally, there are a variety of paths available in insurance--it's not just numbers and underwriting. Marketing, sales, finance and accounting are just some of the other opportunities.

But in spite of these positives, there is still a shortage of young jobseekers interested in our industry. False stereotypes about insurance being "boring" and unrewarding have impeded the ability of agents to recruit new blood.

A problem of perception

Much of the image issue stems from a lack of knowledge. The public doesn't truly understand insurance or its importance; they just know that they are required by law, or perhaps by their mortgage company, to obtain certain policies. Insurance isn't a product whose benefits are immediately realized; in fact, you may go the entire length of a policy without ever having to file a claim. It is a silent protector--never bothersome, but always there in the direst circumstances.

The result is that insurance professionals find themselves in a difficult situation; in an industry with a blemished reputation, mass misunderstanding about what an independent insurance agent does only exacerbates the problem. Ironically, even post-Enron, accounting is still one of the most popular professions for business students to enter, and undergraduates continue to major in finance and dream of becoming high-powered stock brokers, in spite of the Wall Street meltdown.

The key word here is "major." Few colleges and universities provide students with information about insurance, and even fewer offer insurance programs. Official channels for preparing the next generation are rare--most independent agents somehow fell into the industry, or took over an existing family business. A new crop of professionals cannot possibly be groomed to take on the role of insurance agent if the information and resources are not available to them.

Helping the independent agent

The subject of recruitment is of such concern to our agents that PIA affiliates in New York and Connecticut have created task forces of interested members to address the topic. They are charged with not only finding ways to connect with the up-and-coming workforce, but to promote the industry in a more positive light. The committees are determined to reach out to local colleges and help get the word out on the benefits of an insurance career. The willingness of our members to volunteer their time to this cause illustrates just how serious this issue is.

In New Jersey, a special joint initiative by PIA and the Young Insurance Professionals, called Project Y was developed to recruit high school and college graduates throughout the state. Project Y is PIANJ's effort to create a new image of the insurance industry, projecting it as a field with endless growth potential and exciting opportunities. The plan includes representatives attending college and job fairs, and collecting resumes for a database accessible to PIANJ members looking for new employees. This makes it easier for interested students to explore the insurance industry by connecting them directly with agents.

PIA also is committed to giving our entire membership the means to attack the recruitment issue firsthand. For this reason, we've created the Agency Staffing and Assistance Program (ASAP), a toolkit that gives members resources to help them recognize, recruit and train good employees.

ASAP covers a wide range of issues agents may face when seeking out the next rising star for their businesses. Printable resources include downloadable brochures on the insurance profession, sample classified ads, job descriptions and industry marketing language. The kit contains a step-by-step guide to starting and maintaining an internship program, complete with printable forms. ASAP also offers members a full listing of college and high school career counselors throughout their state, so they can forge connections with their local schools on internships and job opportunities.

Inspiring the next generation

Having resources is valuable, but the key is for agents to create relationships with schools in their own neighborhoods and promote their agencies as viable employment options. Contact colleges in your area to see if they host job fairs or offer opportunities for business professionals to speak to students in class. Offer internships to promising business students. Get in front of this new generation and expose them to the insurance industry. By being visible, agents can help shape the image of our industry, one student at a time.

In New York state, we work closely with several institutions, most notably Utica College, which recently established a major in risk management and insurance. By introducing insurance majors into colleges, students will have even more opportunities to learn about the industry and be more likely to consider seeking out a related profession.

Grooming future leaders

After bright young stars join the industry, retention and professional development is paramount. It is essential to not only provide younger employees with educational opportunities, but to make them available in formats that will attract them. The PIA Lunch and Learn teleconference series is a perfect example of education that is short, to the point and fun.

You also need to take professional development a step further and encourage networking and personal growth among your newer employees. PIA has long recognized the need to foster the career development of the young people in our business. For the last two decades, our state associations have had an affiliated Young Insurance Professionals (YIP) organization (www.nyyip.org for New York; www.ctyip.org for Connecticut; www.njyip.org for New Jersey), dedicated to helping its members develop their insurance careers and build a network of industry contacts. The mission of the YIP organizations is to develop tomorrow's industry leaders through social and networking opportunities, mentoring programs and more. The concept of fostering young insurance professionals is so pervasive that PIA National is working to develop YIP associations across the country.

Agents must dedicate time and energy into effectively recruiting and retaining the next generation of insurance professionals. But the issue goes ever further--each of us can talk up our profession and take every opportunity to spread the word about what a good industry insurance is to work in. This is a great field with significant opportunities for anyone who gets involved. It is our duty to promote the value and honor of working in insurance.