New + Old = Workforce Success

For the first time in history, American companies now have five generations of employees in the workforce: the silent generation (born 1925-45); baby boomers (1946-64), generation X (1964-80); generation Y (1980-90) and millennials (after 1990). Each generation has its own work culture as a result of the societal mores and the available technology of their time.

While all companies are facing the challenge of managing a multi-generational workforce, the insurance industry is facing two additional challenges as a result of its top-heavy boomer workforce and shortage of gen Y and millennial workers: The need to attract and develop young people; the industry’s huge baby-boomer population that is beginning to leave the traditional workforce.

This conundrum requires insurance firms to find new strategies for optimizing their workforce. They need to figure out what is relevant to each generation. They need to create a culture that motivates each generation. And they must envision how the two bookends — “young’uns” and “old guard” — can help each other master the other’s knowledge.

Demographics

The demographic ground we’re now walking on in the United States is unmapped. According to U.S. Census 2010 data: One-in-eight Americans is age 65 or above, and by 2030, that statistic will be one-in-five; the over age-65 population is forecast to rise significantly, with the oldest boomers now hitting that age; people age 55 and older are the fastest growing segment of the U.S. population; America’s young population has zero growth.

The numbers mean that older Americans will be working with, and for, their younger peers in unprecedented ways.

Even more important are cultural and sociological changes that are driving boomers to “retire” differently than prior generations. Boomers want and need to continue to work, but want to work in new ways that provide flexibility. They will seek more balance. You might say that is not so different from the young population, who want flexibility. The challenge is for insurance firms to create a “yin and yang” relationship between these two distinct generations.

Great Opportunity

In an insurance culture built on stability and longevity, change is a challenge. Inertia is a barrier. But these trends also present great opportunity. How do independent agencies deal with all these challenges?

Step one is for industry leaders to redefine their concept of the workforce. The proper allocation of resources to meet demands for high-value relationship building should be a top priority. Firms should understand and value the different ways that various generations build relationships.

Second, insurance firms need to attract young talent and keep older talent, including considering flexible work arrangements for both generations.

The third step is to create a mentoring culture, such as pairing young staff with more-experienced staff and have them shadow each other periodically.

Fourth, to meet staffing and work needs, insurance firms will need to take a new approach to their workforce by realigning based on the “right combination” formula: Each job has the right worker with the right skills and resources at the right moment. This may mean parsing linear job descriptions into high-value work and low-value processing functions. It might mean job-sharing. Imagine a 60-year-old and a 25-year-old job-sharing — one in customer relations and the other using the latest technology to do the support work. Think of what they might learn from each other.

Every company’s most valuable resource is its people. Creating a culture that accommodates flexibility, allowing for all types of work arrangements to find and keep the right talent: That’s what it’s going to take to get the job done.

Topics USA Training Development