How to Hire the Next Generation of Leaders

Five Sure-Fire Ways to Get the Best Talent in Your Agency

The insurance industry is transitioning into a new era as Baby Boomers approach retirement. But who will fill their shoes?

There is no line of new talent waiting in the wings. The insurance industry is something of well-kept secret, and those who enter insurance often hear about it from others or “happen upon” it from other business. It’s time for this to change.

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

1. Tap University Programs

Many colleges have created insurance programs, and some now offer insurance and risk management degree, but students often have misperceptions about what the insurance business entails.

Meet this new talen by attending job fairs or create an internship to bring students on board. Partnering with student clubs is also an excellent opportunity to brand your agency as an “employer of choice.”

It’s also important to understand what students or graduates value in employment and how employment with an independent insurance agency fulfills those desires. According to the Society for Human Resource Management (SHRM), the current generation of 20-somethings, known as Generation Y, is entrepreneurial and seeks challenging and meaningful work. The independent agency system provides employees both the opportunity to build relationships with customers and the ability to provide products and services that protect customers’ most important assets.

Employee testimonials are a great way to inform Gen Y candidates of these benefits. Also, inform them of the agency’s community involvement and other philanthropic organizational activities. This generation also values work and life balance, and seeks opportunities for career development and advancement. Independent insurance agencies have a great opportunity to leverage this value as work environments are flexible with reasonable hours.

2. Utilize Employee Referrals

There is great value in employee referrals — both in cost reduction and boosting employee morale. Employees often learn about the job through other agency employees, so implementing an employee referral program leverages this effective, recruiting network.

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. And crear an incentive program that rewards employees for successful hires, and not just referrals.

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 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 before you decide 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 an SHRM study, with 79 percent in 2008 compared with 56 percent in 2006. In 2008, companies who utilize social networking spent up to three hours a week recruiting and screening applicants. These sources can be good ways to target passive applicants who might not otherwise apply, or help target a specific group such as under-30 or entry-level employees. Develop policies for using social networking before taking the dive.

With retiring Baby Boomers and a growing pool of new recruits, 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 top-level talent as soon as there is a need.

Topics Talent Leadership Training Development