Unlock the Secret to Retaining Young Professionals

In today’s tightening labor pool, the competition for insurance talent is fierce. Faced with an aging industry, an impending wave of retirements and growing staffing demands, the insurance industry has shifted its focus to recruiting young professionals to fill the gap. However, forward-thinking organizations realize that in today’s increasingly challenging labor market, recruiting young employees is not enough — they must engage and retain them.

Unfortunately, Millennial professionals have a much higher turnover rate. According to Forbes, 60 percent of young professionals are leaving their organizations in less than three years. On average, this costs organizations between $15,000 and $25,000 per employee. Given the insurance industry’s talent pool, reversing the loss of young talent is a retention issue that cannot be overlooked.

Often characterized as confident and optimistic, Millennials are generally achievement-oriented. This is represented by 91 percent of Millennial professionals aspiring to a leadership position. Unfortunately, 55 percent of Millennials are unsatisfied with their employer’s leadership development opportunities. To better retain these individuals, firms should rethink their development programs to support their young employees’ growth.

Developing Millennial professionals into leaders requires organizations to change the way they approach professional development. No longer is the traditional corporate ladder effective. Rather, these individuals want to carve their own unique career paths. They are embracing the career lattice. Within the lattice system, ideas and development flow along horizontal, vertical and diagonal paths.

Organizations looking to implement a career lattice leadership development program should look at long-term strategies including job shadowing opportunities, cross-departmental projects and committee work. Focus on dynamic, “assignment-based” programs that will provide Millennial employees with new jobs and assignments every 12 to 24 months. This allows for more talent mobility and helps young leaders improve their skills.

Lattice development programs also prevent talent from feeling pigeon-holed in their roles and allow them to gain a broader understanding of the organization.

For many entry-level employees, their first job may not be the most compelling. By allowing them to partner on cross-departmental projects, organizations are opening-up the possibility for professionals to learn more about other areas of the organization and to make an internal move.

While the majority of Millennial professionals seek a leadership position, there may not be positions available within your organization. So, insurance organizations need to rethink the basic definition of leadership. Leadership goes beyond supervising, managing and delegating. They represent the company voice and brand to the public.

Insurance organizations should look at leadership in terms of being an ambassador for the company. This can include opportunities to byline thought leadership articles, star in company videos, participate in webinars and serve as conference attendees. These activities allow Millennial employees to build their public speaking skills, contribute their ideas and serve as brand ambassadors for your organization.

Employees are a vital part of any business. Where the competition for talent is particularly fierce, engaging and retaining current employees can be the differentiating factor. Providing opportunities for leadership and developing a more targeted development program may be the key to engaging and retaining today’s Millennial professionals. Insurance organizations that focus on engagement and retention today will gain a competitive advantage in the years ahead.