Despite knowing young blood is crucial to the survival of the industry, independent agency owners’ track record for hiring and retaining young producers is not too impressive.
In fact, research from The Middleton Group shows that only one out of every five people hired will go on to become a successful producer. While agency owners may be quick to assign blame to the producers themselves — 25 per cent told Insurance Business their biggest issue is overcoming a lack of work ethic among young people — there may be deeper issues at work.
Noelle Codispoti works as executive director for Gamma Iota Sigma, the academic fraternity associated with collegiate risk management and insurance (RMI) programs. In her efforts working with both young people and members of the insurance industry, she has seen what works and what doesn’t when it comes to getting young people to stay.
One of the biggest issues? Lack of commitment to training and mentoring young employees.
Codispoti says many industry veterans believe that because they entered the industry without much training or feedback, today’s young people should feel the same. And that’s a problem.
“That’s the worst mindset we can have, and we have to correct it,” she said. “Yes, these vets turned out to be great professionals, but we can’t have taught these students one thing — that they get ribbons and trophies for everything they do—and expect them to act different when they come into the workplace.
“What we fail to remember is that this generation is a product of what we told them, and if we don’t step up and give them a good mentorship experience we’re going to lose them to investment banking or accounting.” (continued.)
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Mentorship is indeed one of the most crucial ways to engage and retain young producers. Whether through a formal program or simply facilitating a connection between new employees and more experienced producers, agency owners ensure young people feel invested and safe.
In fact, the best mentorships evolve naturally, says Christine Peterson, head of human resources at The Hanover.
“Our new talent is really eager to learn from these individuals who have been around for 20 or 30 years, and by working together they actually strengthen each other and the organization as a whole,” she says. “They’re both getting a very different view on how to do business, and we’ve seen some great, creative solutions on both sides.”
That kind of high-level engagement and opportunity to contribute may also satisfy millennials’ famed yearning for quick promotion as well.
While Codispoti believes companies should be more open to promoting young people in general, she also suggests there are other ways to recognize good work from millennials.
“We’ve been telling people within the industry to have patience and wait your turn,” Codispoti says. “If that mindset is continued through boomers and Gen Xers, our millennials well get fed up before we even have the opportunity to keep them.”
