solving the cross-generational workforce puzzle · when millennials graduate college, millennials...
TRANSCRIPT
Midwest Claim ConferenceMidwest Claim Conference
May 15, 2008May 15, 2008
Lake Geneva, Wis.Lake Geneva, Wis.
Presented by:Presented by:Margaret Resce MilkintMargaret Resce MilkintManaging PartnerManaging Partner
Solving the CrossSolving the Cross--Generational Generational Workforce PuzzleWorkforce Puzzle
Continued industry job growth
+ Mass exodus of baby boomers
+ Less skilled industry workers
Shortage of talent
The SituationThe Situation
Industry Job Growth: 2004Industry Job Growth: 2004--1414
The insurance industry labor market is expected to grow at 10 percent.
Source: Bureau of Labor Statistics
14.0
20.0
8.6
10.9
6.0
14.6
18.3
17.1
14.1
9.5Total US Employment
Management/Business/Finance
Top Executives
HR/Training/Labor Relations
Claims
Underwriters
Actuaries
Agents
Customer Service Representatives
Accountants/Auditors
Mass Exodus of Baby BoomersMass Exodus of Baby Boomers
• The first boomers turned 60 in 2007.
• One-third of the nation’s population is included in the baby boomer generation.
• 43 percent of the labor force will be eligible for retirement within the next ten years.
• The result is a projected supply/demand gap of 10 million workers by 2010, 40 million workers by 2015.
0
10,000
20,000
30,000
40,000
50,000
60,000
Less Skilled Industry WorkersLess Skilled Industry Workers
CPCU Examinations Given
Source: American Institute for CPCU
1992 1997 2000 2003 2004
Less Skilled Industry WorkersLess Skilled Industry Workers
Estimated Claims Hiring Requirements (2016)
Source: Bureau of Labor Statistics
300,000310,000320,000330,000340,000350,000
2006
2016
28,000 new hires required
Source: Bureau of Labor Statistics
Did You Know?Did You Know?
• In 2004, the insurance industry employed 2.3 million workers.
• 60 percent of U.S. workers were considering launching a job search in January 2007.
• Boomers make up 40 percent of the workforce.
Sources: U.S. Dept. of Labor, Bureau of Labor Statistics Newsletter and Salary.com.
TodayToday’’s Workforces Workforce
Traditionalists – 5%
Millennials (Gen Y) – 10%GenXers – 40%
Baby Boomers – 45%
The Tide is ChangingThe Tide is Changing
When Millennials graduate college, Millennials and Boomers will make up a majority of the workforce.
“Boomers, know this: You are outnumbered. There are 78.5 million of you, according to Census Bureau figures, and 79.8 million members of Gen Y.”
~ Fortune, May 2007
LetLet’’s Generalize, not Stereotypes Generalize, not Stereotype
Bo
om
ers
Gen
YGeneralizations Stereotypes
Bookend ConceptBookend Concept
Mature Worker
New Graduate G
en
X
Bo
om
ers
Gen
Y
Tra
dit
ion
alist
s
Traditionalists Traditionalists (1900(1900--1945)1945)
Believe It or Not
“Between 10-15 percent of Traditionalists are working full-time and many others are working part-time.”
~ SIReview, May 2007
Traditionalists Traditionalists
CharacteristicsCharacteristics
• Strong work ethic
• Value work and job
• Loyal
• Patient
• Place duty before pleasure
• Reluctant to technology changes
• Rarely say “no”
Working WithWorking With
• Propose changes as evolutionary steps.
• Show them respect.
• Honor the chain of command.
• Value their experiences; tap into their knowledge bases.
• Communicate face-to-face.
• Take a more formal approach.
• Present ideas logically.
Hot ButtonsHot Buttons
• Flexibility
• Privacy
• Respect
• Traditional recognition (i.e., plaques, photos)
Baby Boomers Baby Boomers (1946(1946--1964)1964)
Redefining the Aging WorkforceAccording to a 2006 Merrill Lynch study, 76 percent of baby boomers expect to work in retirement. Creating an environment where the Mature Worker (55 and above) is welcomed, recruited and embraced in the talent landscape is mandatory.
Baby Boomers Baby Boomers
CharacteristicsCharacteristics
• Disciplined• Loyal• Workaholics• Extremely competitive• Find sense of self in the work that
they do
• Believe a job can be for life• Look for leadership• Sometimes resistant to change
Hot ButtonsHot Buttons
• Liberalized benefits
• PTO/Flexibility
• Privacy
• Respect
• Public recognition (i.e., company newsletter)
Working WithWorking With
• Be patient with their need to work through bureaucracy.
• Acknowledge that you have less experience (when appropriate).
• Be clear on objectives and desired results.
• Be their cheerleaders.• Give them your full attention.• Know the company’s history.
Redefining the Mature WorkerRedefining the Mature Worker
• Traditional hiring relationship• Non-traditional opportunities
– Subject Matter Experts– Consultants– Trainers– Mentors– Special Advisory Positions
GenXers GenXers (1964(1964--1976)1976)
Raising the Bar“Generation X takes employability seriously. But for this generation there isn't a career ladder. There's a career lattice. They can move laterally, stop and start, their career is more fluid.”
~ Diane Thielfoldt and Devon Scheef, “Generation X and the Millennials”
GenXers GenXers
CharacteristicsCharacteristics
• Desire high-quality end results• Value productivity• Work-to-live mindset• Comfortable with authority• Technically competent• Independent, resourceful• Entrepreneurial• Free agent mentality
Hot ButtonsHot Buttons
• Work/life balance• Flexibility/telecommuting • Job sharing• Feedback• Challenge• Autonomy• Fun in the workplace• Informal recognition (i.e., paid days
off)• Effective leadership• Succession plans
Working WithWorking With
• Do not micromanage.• Tell them what needs to be done, but
not how.• Allow them to multi-task.• Make work fun.• Be open and honest.• Use technology.• Delegate.• Be direct and to the point.• Talk casually.• Ask for their opinions.
Millennials (Gen Y) Millennials (Gen Y) (1977(1977--1995)1995)
Raising the Bar“Gen Yers are being wooed from every direction, so the old recruiting tactics won’t work. Companies that want to attract the stars in this highly competitive group have to get creative.”
~ Fortune, May 2007
Millennials (Gen Y)Millennials (Gen Y)
CharacteristicsCharacteristics
• Want to make an impact• Feel work is an expression• Multi-taskers• Goal-oriented• High employer expectations• Technology savvy• Collaborative• Energetic• Optimistic
Hot ButtonsHot Buttons
• Team work• Corporate image/brand• Money • Training• Upward mobility/career path• Flexibility in hours and dress code• Technology• Community service• Fitness
Working WithWorking With
• Create a collaborative environment.• Promote mentorships.• Commit to diversity.• Support them.• Assign multiple projects.• Give them rules/solid leadership.• Encourage new ideas.• Show respect.• Be flexible.• Make work fun.
Generational or Lifestyle?Generational or Lifestyle?
Lim
ited
fin
anci
al r
espo
nsib
ilities
Opt
ion
to li
ve a
t “h
ome”
Mar
riag
eHom
e pu
rcha
se
Car
pur
chas
e
Chi
ldre
nChi
ldre
n in
col
lege
Empt
y ne
ster
sPl
anni
ng for
ret
irem
ent
Sem
i-re
tire
d
Life Timeline
Millennials (Gen Y)
GenXers
Baby Boomers
Traditionalists
Recruiting New GradsRecruiting New Grads
• Break the “insurance is not sexy”stereotype!
• Understand their mindsets.– They are 120 percent more likely than older
counterparts to look on the Internet for jobs.
– They are 67 percent more likely to leave their current employers within the next two years.
• Build buzz on campuses.– Partner with insurance-focused universities.– Participate in on-campus
recruiting/internship programs/career shadowing/scholarships programs.
Strive for DiversityStrive for Diversity
• Diversity of generations in the workplace offers a diversity of ideas and approaches.
• Fully understand the differences that exist between generations.
• Educate managers, supervisors and team members on how to bridge the gap between generations.
• Embrace generational differences to increase productivity and added value.
• Create policies, benefits, recruitment tactics and retention strategies to meet all of the generations’ motivations, desires and needs.
Brave New World Brave New World