How much are we really like our parents? I never saw myself looking at the younger generations and shaking my head in disbelief as my parents did. I’m sure we have all seen our elders shake their heads at us, saying "kids these days." Or how about phrases such as "you don’t know what it means to put in a hard day’s work." If you’re a part of Generation X like me, you have heard similar things before.
Read November's Getting Personal column, "Low loss ratios are no accident."
But now that buck is slowly being passed, as the baby boomers gradually hand over the reins to Generation X. However, if you’re like me, you are starting to find yourself in the similar position, wondering just how to deal with the younger generation. And it seems as if the generation gap has only gotten bigger.
When you’re in the business of personal lines insurance, you have to work with all the generations and know how to keep them as satisfied customers. The Silent Generation, Baby Boomers, Generation X are currently our primary customer base. Each age group has different needs and preferences of how they want to conduct business, and it is our job to stay on top of all their needs. But we are used to handling this customer base at this point and things are starting to change.
The incoming Generation Y is starting to present a whole new set of challenges in the insurance industry, not only as customers but as employees. To move into the future, independent agents must rapidly update our ways of doing business and adjust our policies to accommodate a new generation of customers and employees. Times are changing quickly and if we don’t change just as quickly, we will be left behind.
As we move forward, we also will bring younger employees into the work force. This is where I have found myself sounding just like my parents, the baby boomers. Phrases such as "kids these days just don’t know what it means to work hard" come to mind quite often. However, it is beginning to occur to me that it is not a matter of how hard Gen Ys work, but how they work and what they are working for.
It is very common in older generations for work to be an integral part of who they are, with work being a primary focus in their lives. They are more likely to roll with the status quo, and major changes do not come easily and are not always welcome. As Generation Y moves into the workforce, we are taking on employees who have been constantly surrounded by activity and rapidly changing technology. Change is very important to them, and they want to make an impact on the companies they work for. They want to be interactive with management and have a voice in how things are done.
Read blogs from our Gen Y writers!
Up until now we have gotten used to a different kind of worker. Our older or long-time employees will do what they feel is necessary to get things done, even if it means coming in early or staying late. Younger workers commonly arrive at 9 and leave at 5, with very few exceptions. Generation Y does not live to work, they work to live. Balance between their jobs and their personal lives is of the utmost importance, and understanding this is imperative for us as employers if we are to move forward with them.
However, just because they work differently does not mean they don’t work hard. Generation Y is very adept at multi-tasking. They look to get things done quickly, efficiently and move on to the next task. They will have a great deal to say about how processes can be streamlined and improved and we will all be smart to listen to them. Keeping them satisfied in their jobs will mean embracing change, and change is hard to come by in personal insurance. But if we don’t change now with this group, we will find ourselves lost before we know it.
Read Jeffrey Wyrsch's previous article, "Take care of clients."
So how can we keep this youthful generation happy and continue to grow as agencies? We have to start by listening to them. I will not suggest that we do everything they might recommend, but their point of view is also the point of view of your new and future customers. We should listen to their input, and they will have plenty. Be open to change, reward them for their accomplishments. Straight salaries will not be enough to keep them happy; offer different results-based compensation because they want to see a tangible value to their accomplishments. Praise and recognition will become more important than ever.
Many of our carriers can help keep things interesting for our young employees. For example, MetLife Auto & Home is currently finishing up a 2-month incentive program for writing new business. For every policy bound over an initial goal, MetLife awards agencies gift checks, which can be passed on to the employees who have achieved this. Selective Insurance and Travelers have held similar promotions this year for both new business and account rounding. Regular programs such as this will go a long way with Generation Y, giving them a goal to shoot for with clear rewards for their accomplishments.
The agency itself can develop similar incentive programs to keep everyone interested, along with helping to increase business. Rewards do not always have to be monetary—giving additional time off based on performance will go over just as well with the younger generation, maybe even more so. Trying new things will keep your Generation Y employees satisfied, and they will be more likely to stay in your agency for a longer period of time.
Generation Y customers offer just as big a challenge as the young employees. More than ever, these customers want things to be fast, easy and accessible. If it’s not on the Internet, it’s almost incomprehensible for them. We have to keep on top of every technology available to us as we move forward or it will be increasingly difficult to grow in personal lines. With so many direct companies working online, allowing people to quote themselves and buy their own insurance in 15 minutes, we already are falling behind. Today’s youth are bombarded with advertising from these companies. Independent agents need to find new ways to bring in these younger customers to combat this.
We need to continually push ourselves, our carriers and our management system vendors to keep up with new technology. With comparative raters now offering real-time quotes and getting more and more advanced, the opportunities are growing. We can quote faster with multiple companies, and even offer online do-it-yourself quoting to help keep up with Generation Y. There are limited capabilities from many of our carriers and management systems for our customers to look up their information online, but this still needs to be improved and expanded. However, we need to make sure we are aware of and using these technologies to their fullest extent to move forward.
The latest tools are cell phone apps and social media. Some insurance companies already have cell phone apps available for their customers, so it’s time we agents start looking into it. Using social media such as Facebook and Twitter to get in front of new, younger customers is a great way to combat the advertising blitz of the direct writers. It may not seem important right now, but it will only get bigger as we try to grow with the upcoming youth.
Generation Y is here, whether we are ready or not. To keep our agencies growing in the future, we have to learn to adjust our thinking and quickly. It’s all about change, speed, efficiency and technology. We need Gen Y as customers to keep growing, and as employees to help us keep up with the changes. Kids these days—little do they know they will be saying the same thing when Generation Z takes them by storm!
Read November's Getting Personal column, "Low loss ratios are no accident."
Read Jeffrey Wyrsch's previous article, "Take care of clients."
Read blogs from our Gen Y writers!