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New hires have new expectations

Change is inevitable as the new generations enter the workforce. However, no one could have predicted that a global pandemic would catapult us into a new era of work so quickly. Prior to the pandemic, millennials (those born between 1981 to 1996) and Gen Z (born after 1996) were establishing their careers and already pushing for culture shifts in the workplace—they are the generations that grew up with the internet, digital information at their fingertips and an increasingly global worldview.

As we start to find a way forward after the tumultuous last few years, we’re seeing major lasting shifts in the ways that we work. Now is the time for agents to re-examine their workplace practices to align with the wants and needs of the next generation of employees. Now that this next generation of insurance leaders have experienced what technology can do for the workplace, they’re ready to fully embrace digital along with a few other important culture shifts. Five key areas for agency leaders to consider as we usher in this new era of work are talent diversity, workplace flexibility, creating meaningful work, a caring workplace and development opportunities. Agency owners must be forward-thinking to thrive into the future by embracing this new generation and creating an agency culture that will attract and retain them for years to come.

Embrace diversity, new talent

Now more than ever, embracing diversity is critical to an agency’s ability to attract and retain talent of all ages. Millennials and Gen Z especially value and increasingly expect diversity in the workplace. According to Pew, Gen Z is more diverse than previous generations, and both millennials and Gen Z view societal changes as a good thing.1 And, with nearly 1-in-4 agency hires last year being from Gen Z,2 this new generation already is making its mark on the workplace. To bring in fresh talent, you must look beyond the list of skills found on a resume. By doing so, you can open the pathway for a more diverse candidate pool. The right talent can come from anywhere—a great employee is one who is engaged with the agency. He or she will have the right mix of mindset and skillset to build upon the foundation of an agency and lead it into the future.

To adapt and change the definition of what makes a great employee, you also must consider the standards and assumptions used as part of the recruiting process. Is a bachelor’s degree really required for the role? What transferable soft skills does a candidate bring? How can you foster the talent you already have to help them fulfill their career ambitions and emerging needs of the business? These are just a few examples of the critical questions that agency executives must ask themselves to recruit and retain diverse candidates.

Offer workplace flexibility

It’s no surprise after two years of mostly remote work that job hunters and employees now expect more flexible work options. Most businesses continued to operate successfully with a fully remote workforce, and employees proved they can continue thriving while working from home. The flexibility realized during the pandemic has now become ingrained in culture. According to a report by Zety, flexible working practices were one of the top things that attracted people to a new job.3 In fact, Bloomberg found that nearly half of millennials and Gen Z workers would consider quitting if their employers weren’t flexible about remote work.4 This is contrasted with the nearly two-thirds of agencies that are unwilling to hire a remote employee and more than half that plan to keep staff in the office full-time in 2022.5 The same study also found that of agency employees who do work at least partially remote: • 57% believe they have better work-life balance, • 52% have more personal happiness, and • 47% are more productive when working from home. The benefits of offering a flexible work arrangement are real. Happy employees are more engaged in the work they are doing and they are more likely to stay with your agency. Flexibility doesn’t have to be a one-size-fits-all solution. Different employees may want different options to accommodate the demands of their work and personal lives. By embracing flexibility as part of your agency’s culture, it also means you can recruit and retain talent beyond the small geographic footprint directly surrounding your agency. You can set your flexible or fully remote employees up for success by establishing clear and measurable performance goals, so no matter where they are working from, they have something to work toward that’s attainable for their role. Agencies offering flexibility become enticing options for job seekers, while agencies that maintain a rigid viewpoint on being in a physical office as a requirement will miss out on high-quality candidates.

Create meaning and purpose in work

Work is no longer only about getting a paycheck. Millennials and Gen Z are seeking jobs that give them purpose and make an impact. The results of a Zety survey of Gen Z job seekers offer a clear picture of just how important purpose is to this up-and-coming generation:6 • 95% of survey respondents said it was “very or somewhat important” for their work to have meaning, • 71% said they would take a pay cut to do meaningful work, • 62% said it was important for the company to have values that match their own, and • 61% looked for companies that had a purpose beyond just making a profit. So, how do you hire from this group? Insurance agencies need to tell compelling stories of the meaning behind their work. Insurance isn’t just about the process of issuing a policy—it’s about providing clients peace of mind and delivering on the promise made if they suffer a loss. It is deeply human, and independent insurance agents are helping their clients and communities through good times and bad. Telling these stories when recruiting can help differentiate your agency from other agencies, and from other opportunities and industries candidates may be considering.

Establish a caring workplace culture

Creating meaningful work and cultivating a culture of caring go handin-hand. When an employer cares about its employee’s well-being, it comes back full circle. Employees are more likely to stay with the organization, do their best work and promote the business as a great place to work to their network, opening the pathway for more talent recruitment opportunities. With the impacts of the pandemic, creating a caring workplace culture is more important than ever as employees continue to experience increased levels of stress and uncertainty. In fact, TELUS International found that 80% of employees would consider quitting their current

job for a job that focused more on employees’ mental health.7 A Gallup survey found that employees who strongly agree that their employer cares about their overall well-being, in comparison to others, are: • 69% less likely to actively search for a new job, • 71% less likely to report experiencing a lot of burnout, • five times more likely to strongly advocate that their company as a great place to work, and to strongly agree they trust the leadership of their organization, and • three times more likely to be engaged at work.8 How you support employees will look different based on your agency’s values and culture. Offering tools and resources that support and foster the mental health and overall well-being of employees is a great start. Establishing Employee Resource Groups, offering Employee Assistance Programs, and encouraging employees to bring their whole selves to work are just a few examples. Creating a caring workplace culture will help agency owners attract top talent, retain employees, and prevent burnout among staff.

Provide growth and development opportunities

Providing growth and development opportunities also is critical to attracting and retaining the next generation of insurance leaders. Millennials and Gen Z are in the early to mid-stages of their careers. Gen Z explicitly lists career development opportunities as an important qualification when looking for a job.9 The members of the next generation are investing their time into meaningful work, and they want to know that there is growth and opportunity for advancement where they are putting their energy. While many new graduates and job seekers might not be aware of the career opportunities that are available in the insurance industry specifically, insurance agencies are well suited to meet many of the qualifications job seekers are looking for—offering meaningful work, opportunities for career advancement and ways to grow into a competitive salary.

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In 2021, a survey found 66% of those who quit their job did so because of limited career opportunities.10 And a report on the state of women in independent insurance agencies found that more than half of woman frontline employees under the age of 50 are interested in partnership opportunities.11 To attract and retain the next generation of talent, agency owners need to invest in employees’ career development and show the career paths that are available. When it comes to development, millennial and Gen Z job seekers are looking for one-on-one mentorship or online classes over traditional classroom training. By offering these types of development opportunities to your employees, your agency would be fulfilling the demands and needs for the next generation to grow in their insurance careers while establishing a leadership and perpetuation pipeline. As we move forward into this new era of work, it is time for agency owners to rethink and implement changes in their hiring and talent management practices to best position them for future success. The next generation of insurance leaders are forging their paths in the industry, and forward-thinking agency owners are making changes to meet the needs of these younger employees. By investing in human-centered workplace cultures, embracing diversity, hiring for personality and potential—rather than experience alone—and investing in employee development, agency leaders can bring in and train the next generation of talent to carry the agency forward into the future. Borer and Clemishaw are leaders in the Liberty Mutual and Safeco Insurance independent agent distribution organization, serving the Northeast. Borer brings nearly 20 years of experience to her role as AVP & region operations manager working across Liberty Mutual business lines and Safeco personal lines, while Clemishaw brings nearly 15 years of industry experience and serves as AVP & region director for New England with a focus on business lines. Reach them at robyn.borer@libertymutual.com and jenna.clemishaw@ libertymutual.com, respectively.

1 Pew Research Center, 2020 (pewrsr.ch/39vqdUM) 2 Liberty Mutual and Safeco Insurance 2022 Agency Growth Study (bit.ly/3lcserm) 3 Zety, 2021 (bit.ly/3yFzCDp) 4 Bloomberg, 2021 (bloom.bg/3yCSbZ9) 5 Liberty Mutual and Safeco Insurance 2022 Agency Growth Study (bit.ly/3lcserm) 6 Zety, 2022 (bit.ly/3wiadOI) 7 BusinessWire, 2020 (bwnews.pr/3weonQW) 8 Gallup, 2022 (bit.ly/3a4RxcE) 9 Zety, 2022 (bit.ly/3wiadOI) 10 Zety, 2021 (bit.ly/3yFzCDp) 11 Liberty Mutual and Safeco Insurance 2022 Agency Growth Study (bit.ly/3lcserm)

New hires and your E&O loss prevention culture

As new staff members join your agency, there is a need to provide them with training on such items as your agency system, your procedures, the carriers with which you do business, and the details of the job responsibilities. Obviously, the goal is to get the new staff members up to speed as quickly as possible so they can begin to contribute to your agency’s success.

One area that may not get the attention it deserves is errors-and-omissions Just because the loss prevention. If a new staff member has some insurance experience, it may be assumed that he or she understands employee worked in another agency the ins and outs of E&O and what is necessary to minimize the potential for E&O claims to occur. does not mean that E&O was Quite honestly, this is a dangerous understood and assumption to make. Just because the employee worked in another agency valued to the level does not mean that E&O was under- that your stood and valued to the level that your agency does. In addition, if the employee agency does. is a rookie in the business, there is a good chance he or she is completely unfamiliar with the concept of E&O—and uneducated on the key issues that drive a strong E&O loss prevention culture. As your agency experiences the anticipated turnover, ensuring that these new hires get the proper E&O education and guidance becomes even more vital. Without question, your firm’s E&O loss prevention culture will be influenced heavily by the level of E&O training these new staff members received upon joining your agency. Items to consider include: Provide an E&O overview. As new employees are brought into your agency, it would be beneficial for you to dedicate some time to the topic of E&O and emphasize that by adhering to various best practices, E&O claims can be avoided. Depending on the size and structure of the agency, consider having each respective department manager (personal lines, commercial lines, benefits, etc.), provide the new staff members with the necessary information. It is suggested to provide new staff members with details of the expected procedures as it is possible that your agency has different expectations than the new employees’ prior employers. Then periodically (preferably monthly), meet with new staff members to give them a refresher on E&O overall or possibly specific issues such as documentation, exposure analysis, managing workloads, etc. While the issue of “document, document, document” has been part of the E&O loss prevention mantra for years, don’t assume your new staff members fully understand the value of a high level of documentation. Share your agency’s expectations for documentation with the new staff members.

Contact your state association

or E&O carrier. These organizations probably have resources/articles/educational seminars they can provide (some may be for a fee) to get the new employee up to speed.

Add an E&O discussion in your

agency staff meetings. The more your new staff members hear about E&O loss prevention, the more they will understand it and be committed to the cause. In staff meetings, address issues such as the finer points of specific coverages, or how to handle various inquiries from your customers.

E&O

Your agency system. Consistency is a key word when dealing with E&O. This means that there is a common way that various procedures are performed within the agency. Even if you hire a new employee who has knowledge of your agency system, it is important to understand that your agency might use the system differently than how the new staff member used the system at his or her previous employer. This is when having a written procedures manual that details the use of the system will play a vital role. Audit the work of the new staff members. Perform some extensive auditing of the new staff members to determine if they are meeting the agency’s expectations. The quicker any issues are identified, the quicker that further training can be provided. Bottom line: Dedicate time early on to provide your new employees with a solid overview of your E&O loss prevention culture. This will play a key role in ensuring a bright future for your agency. Pearsall is president of Pearsall Associates Inc. and special consultant to the Utica National E&O Program. Utica National Insurance Group and Utica National are trade names for Utica Mutual Insurance Company, its affiliates and subsidiaries. Home Office: New Hartford, NY 13413. This information is provided solely as an insurance risk management tool. Utica Mutual Insurance Company and the other member insurance companies of the Utica National Insurance Group (“Utica National”) are not providing legal advice, or any other professional services. Utica National shall have no liability to any person or entity with respect to any loss or damages alleged to have been caused, directly or indirectly, by the use of the information provided. You are encouraged to consult an attorney or other professional for advice on these issues. © 2022 Utica Mutual Insurance Company

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