How to Recruit Gen Z Employees into the Insurance Industry

Despite current economic complexities, many industries are still hiring at a dependable pace. Among them is the insurance sector, which is facing a significant conundrum: a considerable segment of its workforce, representative of the venerable baby boomer generation, is marching steadily towards retirement. 

A 2021 report by the US Chamber of Commerce stated that in the last ten years, the number of insurance professionals aged 55 and over has increased by 74%, and less than 25% of the workforce is under 35. The industry is heading towards a mass departure of its most experienced professionals as they reach retirement age. 

This will leave a significant void, with thousands of job vacancies posing a threat to the industry’s ability to sustain competitiveness and relevance. The sector must, therefore, seek solutions, and a dynamic and forward-looking approach is essential. 

The hope of securing a foothold in the future now rests upon the sector’s ability to strategically engage and attract the new generation—none more pivotal than the tech-savvy Generation Z. 

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Why prioritize hiring Gen Z?

A focus on hiring Gen Z is a smart move for companies looking to reimagine their employee recruitment strategies. It’s a group for whom tech-savviness is a given. Digital transformation is impacting every industry, insurance included, and the need for staff with an aptitude for mastering new technologies quickly is a must. Gen Z can bring a fresh perspective and diverse skills that can help address the industry's evolving needs when harnessed in tandem with the experience and wisdom of the established workforce. 

What Gen Z is looking for?

If insurance agencies are to successfully recruit Gen Z candidates, it’s important to understand what this generation prioritizes in an employer.

Upfront information on pay

In the age of information, Gen Z thrives on transparency. To capture their attention, insurance agencies must provide candid and transparent details about pay structures right from the get-go. Even if you’re working with a top insurance company, promising a competitive salary without any further details is unlikely to cut it with this generation. 

Providing an honest accounting of salary ranges, potential commissions, and bonuses establishes not just a fair starting point but also trust—a vital factor for Gen Z candidates. Many companies prefer to be secretive about compensation at the beginning, but they have a better chance of recruiting young people into their ranks if they instigate open dialogue about pay from the beginning.

Beyond the basics

CA competitive salary is a great start, but Gen Z will be looking for more than just money—a comprehensive benefits package can make a huge difference. Healthcare coverage, retirement plans, and paid leaves are expectations, but forward-thinking agencies are delving deeper. A package that takes a holistic approach to employee well-being will be particularly attractive.

This generation has a modern understanding of mental health and personal growth. Wellness programs, mental health support, and avenues for skill development show a commitment to ensuring employees are supported and appreciated. A complete benefits package is akin to a promise of nurturing their potential.

Flexible working

The confines of a 9-5 on-site job are not always likely to persuade many Gen Z candidates to apply for a role. This generation has witnessed the great shift in working practices that the COVID-19 pandemic triggered and will not be convinced that working rigid hours in the office every day is necessary. 77% of Gen Z workers would consider looking for a new job if their employers asked them to return to the office full-time. 

Flexibility, autonomy, and a decent work-life balance are expected from Gen Z. Insurance companies must embrace this cultural shift in order to fill vacancies by offering options like hybrid or remote work and flexible hours. Adopt tools like mobile work management platforms and Vonage phone system in the cloud to facilitate remote working. By offering your potential Gen Z recruits the flexibility of remote options with all the tools they need at their disposal, you can help sweeten the deal. 

Company Image and Ethics

Gen Z are switched on and socially conscious. They are more likely to look for employers whose ethics and image align with their own. Agencies looking to attract these younger candidates should clearly outline and demonstrate their social responsibility and ethics. This can take the form of sustainability policies and community initiatives.

But it is also advisable for insurance agents to exhibit an authentic and respectable attitude towards their customers. In an industry that has garnered a reputation (whether fair or not) for caring more about profits than its customers, it’s important to show you care. Create or curate plenty of content that is aimed at helping customers, including blog articles
 or in-depth guides like 17 Terms Your Customers Need to Know About Property & Casualty Insurance.

Long-term career growth

A job isn’t just a job for this generation. They tend to be ambitious and will be considering where any job will take them in the long run. The insurance sector has a better chance of getting them on board by showcasing the level of growth and advancement it can offer. From data scientists to digital marketers, the industry encompasses diverse roles that Gen Z candidates may not have considered.

Genuine success stories of people who have risen through the ranks are a great way to demonstrate the wealth of opportunity a company can provide. By presenting a clear roadmap for progression, the sector can tap into Gen Z's desire for achievement.

How to recruit Gen Z into insurance

They’re a generation who have grown up with information at their fingertips. Whether it’s Googling employee reviews or searching for salary benchmarks, they know how to research potential jobs and establish educated expectations. Offering the elements below can help to meet those expectations.

Virtual recruitment

Taking recruitment drives to the virtual realm can make it easier for Gen Z candidates to explore career pathways in insurance. By embracing a spectrum of virtual recruitment events, from interactive webinars to virtual job fairs, insurance agents can resonate with this tech-centric generation.

Streamlined online application processes that include user-friendly interfaces and swift responses empower candidates to navigate the hiring process effortlessly. You can make this entire process easier with a tactical HRIS (What does HRIS stand for in human resources?) system. This cutting-edge combination of innovation and accessibility increases the chances that candidates will consider walking through your (virtual) door.

To enhance their experience even further, provide an interview guide that offers insights into the interview process, what to expect, and how to prepare effectively. This can help Gen Z candidates feel more confident and informed as they progress through the recruitment stages.

Be visible online

Cover the basics first. You need an up-to-date, user-friendly website. This could be a dedicated, local recruitment website hosted on a platform like Only Domains. Just make sure to have detailed information on any position, as many younger people won’t apply for a job without a proper description. But Gen Z will expect a presence beyond just a website. 

You should also have a strong social media presence. This means not only creating social media pages but also posting regularly, interacting with followers, and answering questions. Be bold and creative; don’t shy away from videos or visuals. The most essential aspect to focus on is making sure that the content you put out boosts your brand identity and helps your audience.

Advertise your flexibility

In recent months, there has been a new trend of companies making moves back towards in-office work. Though business leaders may have their reasons for doing this, it is not likely to be a popular move with Generation Z. In industries like insurance, where remote work is possible, offering at least some flexibility in the form of a hybrid model is expected.

This is not only beneficial for staff; by opening up recruitment to remote candidates, you are no longer constrained by geographical boundaries. Overseas candidates also become possibilities, which will provide many more options than a restricted domestic talent pool. In contrast, insisting upon fully on-site working may drive away many Gen Z candidates.

Be open to other kinds of experience

It is only natural that companies will want to recruit experienced professionals who know their SR-22 insurance from their non-owner policies. But while it’s tempting to consider only candidates who can hit the ground running, with the inevitable shortfall in qualified candidates swiftly approaching, it’s time to be more flexible.

Look for transferable skills that give a candidate great potential in the insurance field. By welcoming professionals from a kaleidoscope of industries, insurance agencies can fortify their ranks with team members who bring fresh insights, creative thinking, and a vast array of experiences.

Invest in training initiatives

Developing extensive training programs can make it easier to bring in new recruits who—though highly capable—may not have enough experience in the sector. This is not only good for the company, but it gives new candidates confidence that they will be supported every step of the way through their early career in insurance.

These training programs can also be skewed towards internal candidates. Reskilling existing employees so their careers can progress into new areas is a good way to grow your business with internal hiring. Investing in your employees' development this way can help bridge the talent gap and also raise the job satisfaction and loyalty of your team members.  

Final Thoughts

As the insurance industry braces for the impending exodus of an aging workforce, the talents of the new-to-the-scene Generation Z offer a solution. By understanding their preferences, values, and expectations, insurance companies can strategically position themselves to attract and retain Gen Z talent. 

Embracing flexibility, emphasizing ethical practices, and investing in training initiatives will not only help to make up for the likely shortfall in talent but also ensure the resilience and competitive future of the industry. The time to prioritize recruiting Gen Z employees into the insurance sector is now. That way, you can secure a dynamic and innovative workforce for years to come.

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