The biggest expense in any agency is the staff. Of course, a quality staff is also the most valuable asset. Unfortunately, most agents I meet report that they are having a hard time identifying, recruiting, training, and retaining qualified staff.
This problem is not going to go away. In fact, it is going to get worse. Changing demographics are going to have a profound effect on the ability of your agency to remain successful. Here are some trends to consider:
- The Bureau of Labor Statistics projects a severe labor shortage by 2012—just four short years from now.
- There are currently about 78 million Boomers who are beginning to retire in increasing numbers.
- There are only about 48 million GenXers in the workforce to replace the retiring Boomers.
- There are about 80 million Millennials (Gen Y) who will be entering the workforce in the years ahead, but most agency owners don’t understand how to attract or manage them.
Other businesses are facing the same problem and are aggressively implementing recruiting and training programs to bridge this growing gap.
Eye opener
Try this. Calculate the average age of your existing internal staff. Do the same for your producers. If your agency is like many that I see, the resulting number will be over 50 (maybe well over 50). What are you going to do when your existing staff begins to retire? How are you going to create an agency culture where a 20- or 30-year-old will want to spend his or her time?
There are some things you can do as you plan to fill this gap. These include:
- Keep up to date: Are you providing the technology tools that younger employees expect? Keeping current can also create problems that need to be managed. Your existing staff has been doing their work the same way for a long time. Change always creates stress. Plan for the change so that you can at least minimize the stress.
- Technology can be an advantage: Continually experiment with new technology tools to see which are worth using and which are not.
- Outsourcing: Examine outsourcing as a strategic option. Outsourcing can take many forms, from carrier service centers to hiring an “employee” overseas.
- Don’t pay lip service to training: Few agencies use the full potential of the technology they already have. Ongoing training always seems to take a back seat to other agency priorities. This is a mistake.
- Try new things: Experiment with new recruiting tools. I met an agency last week that successfully used “help wanted” ads on CraigsList.com to find new sales talent. You need to go where the talent goes to find new employees. Don’t know what CraigsList is? Go find out.
- Recruit second career retirees: Unlike their parents, when Boomers retire they often start second careers to remain active and engaged. These are mature people with knowledge and experience. While they may not want to work full time, they can be a valuable source of talent.
These demographic trends need to be part of your agency strategic planning process. Being open to new ideas and creative will help you weather these changes.
