How to Hire the Next Generation of Leaders

The insurance industry is transitioning into a new era. For years, Baby Boomers have led the way and now, as they approach retirement, must find a way to pass along their legacy. Who will fill their shoes?

The problem is there is not a line of fresh talent waiting in the wings. Typically, those who enter the insurance business hear about it from others or “happen upon” it from other lines of business. It’s time for this to change.

Independent insurance agencies must focus on building staff and recruiting the best and brightest. Here are sure-fire ways to attract the next generation of leaders into your agency.

1. Tap into University Programs

Recruiting new talent starts at the collegiate level. Over the past year, universities and colleges have created insurance programs and some now offer insurance and risk management degrees. However, students often have misperceptions about what the insurance business entails.

To get to the root of new talent, attend job fairs and create an internship program to help get students on board. Partnering with student clubs is also a way to brand your agency as an “employer of choice” and clarify misperceptions.

Learn what students or graduates value in employment and how employment with an independent insurance agency fulfills these desires. According to the Society for Human Resource Management, the current generation of 20-somethings, known as Generation Y, is entrepreneurial and seeks challenging and meaningful work. They also value balance in work and life balance, and seek opportunities for career development and advancement. Independent agencies have a great opportunity to leverage this value as work environments are flexible with reasonable hours.

Because the structure of an independent agency tends to be flatter than a large corporation, employees have more access to the leaders of the organization who can serve in a mentor role. Agencies are also in a better position to offer formal and informal training opportunities, while encouraging employees to pursue continuing education and certifications.

2. Utilize Employee Referrals

There is great value in employee referrals. Since employees often learn about the job through other agency employees, implementing an employee referral program leverages this informal, yet effective, recruiting network. In addition to costing significantly less then most job advertisements and headhunter fees, employee referral programs, on average, get a 25 percent higher retention rate and attract higher quality employees. Get current employees involved by announcing all job openings and communicating exactly what qualities are needed. Provide them with the tools, resources and business cards to attract new talent, especially when attending business events.

Structure a program that rewards employees for successful hires, not good referrals. Recognize a successful employee referral-hire increases morale but don’t forget feedback to an employee who’s referral was not hired.

3. Take a Marketing Approach to Hiring

Recruiting new employees is very similar to recruiting new customers. In both cases, you have to identify the right prospects, market your agency to get an appointment, pre-qualify the chance to close, make an excellent presentation and, finally, make the sale.

Thinking like a marketer will help you better define your objectives, identify your target and create a strategy. Frequently, companies forget to create a positioning strategy — what is special about working at your agency? Just like the prospecting phase of sales, this is essential to recruiting new talent.

Once you have a supply of applicants, qualify or assess them by determining which ones possess the skills and attributes you desire. During the interviewing phase, you will be tempted to “sell” the agency, but don’t. That would be like selling to a buyer before you know their needs and or know if you want them as a customer.

Once you’ve identified the candidate you want, close the deal by sharing the agency’s story, its values, benefits and expectations of all employees. Make sure these fit with what the Gen Y employee values as discussed above.

4. Use Social Networking to Attract Talent

Attracting the next generation of talent requires a tech-savvy work environment. Social networks such as LinkedIn, Facebook and Twitter embrace open and honest communication and can be great recruiting tools. Facebook recently launched a new recruiter program for insurance employers with a job board.

Social networking sites are being used much more frequently for recruiting, according to a SHRM study, with 79 percent in 2008 compared with 56 percent in 2006. These sources can target passive applicants who might not otherwise apply or help target a specific group such as under-30 or entry-level employees.

Now is the time to attract the next generation of employees into the insurance business. Don’t wait until a position opens up and scramble to get it filled. Follow these tips to employ A-level talent as soon as there is a need.