Insurance Claims As a Millennial Career

Insurance Claims As A Millennial Career: An Unexpectedly Great Fit For The Next Generation of Employees A new national research study reveals that the insurance claims industry is a great fit for the priorities and preferences of the emerging generation of employees

October 2016

Research Presented By: PLRB Property and Liability Resource Bureau and The Center for Generational Kinetics

® Author’s First Word “There has never been a better time for the insurance claims industry to reach out to Millennial and college-aged Gen Z as many of the industry’s offerings, perks, and career options have wide appeal with this group of emerging employees. It’s time for the industry to spread the message coast-to-coast: we are a great fit for Millennials and Gen Z!”

-Thomas W. Mallin, President & CEO, Property & Liability Resource Bureau and Jason Dorsey, Co-Founder, The Center for Generational Kinetics

04 Welcome from the Authors

05 Key Findings from the Study

• Turning Millennial and Gen Z Job Seekers Into Job Applicants

• The Non-Financial Appeal of the Job

• The Working Environment Matters

18 About the Study’s Authors

19 Research Methodology

20 Copyright and Usage

October 2016 Welcome to the 2016 national study on Millennials, college-aged Gen Z, and employment in the insurance claims industry!

We are pleased to share our exciting findings with you.

The property and casualty insurance industry represents a stable, influential industry that is at a defining moment in terms of understanding and positioning its appeal to the next generation of employees. This national study was designed to examine what Millennials and college-aged Gen Z want as they make career decisions, and how their preferences and priorities intersect with employment and career opportunities in the insurance claims industry.

It’s critical that executives, managers, and insurance claims leaders across the board understand where and how Millennials and the oldest members of Gen Z fit into their workforce—from mindset and work style to career opportunities and advancement. By acting now to understand, build on its core strengths, and adapt to the next generation, the industry can stay ahead of the curve to be positioned to attract, retain, and develop the best talent and potential that Millennial and Gen Z employees bring to the workforce.

The timing for this study could not be more urgent or timely given that Millennials are already the largest generation in the US workforce and Gen Z is already 21 years old! Whoever understands and adapts to this new generation will win now and for decades to come.

PLRB and The Center for Generational Kinetics are pleased to partner on this groundbreaking national research and its exciting discoveries. To schedule a media interview about the study and its findings, please contact Scott Powell, Vice President, Educational and Technical Services, Property & Liability Resource Bureau, at [email protected] or 630-724-2227.

Thomas W. Mallin Jason Dorsey President & CEO Millennial Expert Property & Liability Resource Bureau The Center for Generational Kinetics [email protected] [email protected]

Compensation is a practical consideration To dive into the hard numbers, the national study for anyone in the job search, whether 21 or found that 85% of Millennials and college- 61. Compensation, after all, is the primary aged Gen Z say the salary component of a job reason most people work. Every job has its posting makes them want to apply immediately pros and cons, but getting paid for a job well for the job. This issue of salary disclosure is so done is a staple of the employee and employer important that 78% of Millennials and college- relationship. But how important is compensation aged Gen Z say that a company’s employment to Millennials and college-aged Gen Z as they website absolutely must have the starting salary enter the workforce? range for a position in order for them to apply. This is a huge number and a key ingredient for The national study found that Millennials and recruiters to know and act on immediately. college-aged Gen Z are similar to previous generations in considering salary an important The claims industry has the opportunity to criterion for employment decision-making. Like quickly transform job searches into highly those before them, younger job seekers still view valuable job applications by including what salary as a prime point of consideration. This matters most in the job postings: show them the is important because the property and casualty money. insurance pays well for entry-level employees— which is where many Millennials and Gen Z In order to eliminate the risk of losing talented, start out—as well as paying well for employees valuable Millennial and Gen Z applicants, that progress in their career. This message must it is critical that companies, recruiters, and be shared and shared upfront. employment branding professionals pursuing Millennial and Gen Z candidates are diligent In fact, the national study found that younger job about presenting position salaries from the seekers expect to see compensation prominently very beginning, even in the initial contact or and clearly listed in a job posting if they are marketing of the job opening. going to apply. And this is no minor request or expectation. Instead, it is the number one Bottom line: The competitive starting salaries factor that will turn a job perusal into a job offered by the claims industry should be application. broadcast in every single job posting without fail. And the good news: not only will this drive more applicants from Millennials and college- aged Gen Z, but other generations want this insight, too!

Salary or salary range isn’t the only way to daily snapshot of the job. Younger job seekers, attract Millennial and older Gen Z job hunters to particularly college-aged or recent graduates, actually take the all-important action of applying have very little familiarity with the job market or for a job. They are interested in other aspects of working in a professional setting. It helps them a job, too, and some of these aspects may not tremendously to understand the expectations seem obvious to include in a job posting yet of a claims person’s role, especially when their they are powerfully influential. understanding of the position may be limited or non-existent. A striking 79% of Millennials The media often paints Millennials to be out and college-aged Gen Z say that a description of touch with reality and stuck in adolescence. of what a job would be like on a daily basis While this may be true for a segment of the makes them want to apply immediately for the generation, Millennials are overall a group position. of young adults who consider the future with the same strategic planning goals as previous The claims industry is in a unique position to generations. This can clearly be demonstrated capitalize on both of these key findings. The by the fact that traditional benefits have notably industry is stable, and enduring, capable of significant importance when Millennials are offering strong, competitive traditional benefits looking for employment. In fact, the national that need to always be showcased on job study found that behind salary, traditional descriptions. Additionally, since many younger benefits such as healthcare, retirement plan, and job seekers are unfamiliar with the claims paid time off are the key features of a job listing industry, a brief “snapshot” of the role could go likely to inspire an application. Eighty percent of a long way toward turning job scanners into job Millennials and Gen Z say this information on a applicants. job posting makes them want to apply for a job immediately. Bottom Line: The insurance claims industry should better present what a “day in the While benefits are often listed in a job posting, life” of an employee looks like including the there are other highly compelling aspects of a unexpected, important, and meaningful work role that should be featured in a job description that employees of every job title perform. This in order to catch the attention of younger message should be visually appealing, ideally applicants. The most important of these is a including video, and be presented with candid, engaging, and diverse messengers.

The popular narrative of entitled Millennials The thorough, extensive training provided leaves little room for exploring the generation’s for newcomers to the claims industry has the deep interest in learning. But this interest is a potential to be very appealing to younger job real and strong pull for both Millennials and seekers. An emphasis on the skills development older Gen Z, and one that can be recognized by and advancement opportunities that result from employers to the advantage of everyone. this training is an effective way to stand out to this generation of applicants and potential new Simply put, Millennials love to learn and hires. Their strong desire for training and skill experience life, and consequently place a great development perfectly overlaps with the claims deal of value on training of all types. This is true industry’s emphasis on the same. in their personal lives and without question a priority in their professional endeavors. Bottom Line: A concerted effort to advertise the Specifically, Millennials and Gen Z are looking extensive job skill training and development for the opportunity to gain new job skills from that is part of the claims industry is imperative the outset, and they often base their application for attracting Millennials and Gen Z. Make it decisions on whether or not these opportunities easy for them, even in job postings, to see the exist. connection between the offered training and personal development. For example, the national study found that 73% of Millennials and college-aged Gen Z are inspired to immediately apply for a job based on the opportunities for personal or job skill development. Presumably, this development leads to better skills and the recognition of these skills because 77% would apply immediately based on the opportunities for advancement in a position. But skills development isn’t the only appealing type of training. More than half of Millennials and college-aged Gen Z, 57%, say the amount or type of training received in the first year will convince them to apply for a position right away.

Job seekers are looking for many things as they But that isn’t all. surf through countless employment websites, perusing openings, descriptions, job titles, and These ratings and reviews must be from the like. They want to know about position employees! Millennials and Gen Z are truly requirements, necessary experience, company seeking an authentic assessment of a company location, and starting salaries. The main focus, from people who know best. And for many of however, is a clear, accurate, and authentic them, this must be present in order for them to understanding of a company and the position it even apply. is looking to fill. Bottom line: Adding company ratings and This authenticity is highly important to reviews directly from employees onto the Millennials and Gen Z, and can be seen in organization’s employment website presents a their insistence that it be seen even in the tremendous opportunity for insurance claims employment search process. As with so many companies to connect with younger job seekers other decisions made by this age group, ratings and establish trust. When Millennials and Gen Z and reviews play an essential role in their job see company ratings and reviews directly from search decision. But for this age group, it often employees on an employment website, it sends goes beyond a “nice to have” job search feature a clear, honest message that resonates in an to a “need to have”. In fact, the national study appealing, relevant way. found that 42% of Millennials and college-aged Gen Z say that a company absolutely must have ratings and reviews on its employment website in order for them to apply.

It is starting to dawn on employers across the overwhelming 78% of Millennials and older country that younger generations have different Gen Z say that flexibility in their work schedule expectations around work schedules and (such as flexible work hours or days) would environments than older generations. While this convince them to accept a job immediately can often be seen as a source of great tension, even if there is no opportunity for earning it is also potentially a great opportunity to be bonuses. relevant to the next generation of employees, particularly for companies willing to understand In other words, there are non-financial perks the reasoning and mindset of younger workers that can make a job very appealing to younger and make adjustments where possible. generations. This is a prime opportunity for insurance claims departments whose jobs can A prime example of this generational friction often lend themselves well to remote or flexible involves work schedules. Baby Boomers, often work environments. This aspect of flexibility is the managers and executives of employers, highly appealing to Millennials and Gen Z and, are well known for expecting work to be done for most of them, can even take the place of the in an office setting during set hours. Typically, bonus structure that was the prized perk of their Boomers’ perspective that work productivity parents’ generation. exists primarily in these confines prevents the option of remote work arrangements or flexible Bottom Line: When possible, allow for a schedules. Younger workers, on the other hand, flexible schedule or other non-traditional often desire the freedom and flexibility that work arrangements that match the individual comes from being able to work outside office company’s culture, structure, and environment. settings or at hours that are more convenient to This highly appealing aspect of the job will go their lifestyle or work flow. a long way toward convincing Millennials and older Gen Z to accept a job. The national study found that it isn’t just that these non-traditional arrangements are important to younger employees, but that they actually serve to attract applicants. Non-traditional work arrangements even offset a lack of other financial benefits such as a bonus structure. In fact, an

The connectedness of our digital age has both If there was ever a tailor-made overlap with positive and negative effects, but one of the the insurance claims industry, this is it. Claims benefits is a heightened awareness of the needs professionals are steadily on hand as people of others. It is one thing to hear about the experience all types of stress and crises and devastation of a wildland fire fifteen hundred are in the best possible position to help. miles away, but it is quite another to see pictures Highlighting this aspect for younger generations and posts in your online news feed. Suddenly, has the potential to make the claims industry names, faces and tangible needs are at the immediately and dramatically more appealing forefront of your perspective. Perhaps this has to a group ready and anxious to impact others helped produce the increased consciousness of through their work. younger generations toward the needs of others. Whatever the cause, Millennials and older Gen Bottom Line: The “helping others” aspect of the Z are well aware of these needs and anxious to insurance claims industry needs to be front and help. center in any recruiting materials, job postings, or employment websites. Millennials and Gen This is true on a personal level, but applies Z want to help others through their work, so professionally just as well. The national study highlight how this is possible on a daily basis found that impacting the lives of others through with the claims industry. work is highly important to younger generations. In fact, 69% of Millennials and college-aged Gen Z say that impacting the lives of others through their work or the work of their employer is an important aspect of a job. Even more specifically, 61% see helping people when they are in a time of need, stress, or crisis as an important aspect of a job.

With an emphasis on the importance of salary Bottom line: Apply concentrated efforts and traditional benefits like healthcare, it might to creating and highlighting quality work be assumed that when Millennials and Gen Z environments. This will appeal strongly to are looking for a job, they primarily want a Millennial and Gen Z job seekers and put historically stable and established industry. insurance claims companies at the top of their However, it turns out these are secondary employment considerations. For example, considerations. establish an office snack bar, go “gourmet” with the coffee selection, have monthly, catered What this group of job seekers most values is office lunches, or give each employee a small the work environment, namely how employees stipend to decorate their workspace. What these are treated. The national study found that small additions look like depends entirely on how employees are treated is the #1 industry the culture, capacity, or willingness of different characteristic that Millennial and college-aged claims departments and it matters far less than Gen Z find important when looking for a job. the fact that they are being done. The point is In fact, more than half (56%) cited employee to foster an environment and culture that show treatment as their top job search characteristic. Millennial and Gen Z that employees are valued.

So while the claims industry already has stability and longevity in spades, the prioritized emphasis in appealing to Millennials and Gen Z is a high quality work environment. Similar to the positive effect of non-traditional work arrangements, small office additions or traditions such as a free, in- house snack bar or having your birthday off can go a long way toward making younger generations of employees feel like they work in a high quality environment.

A huge part of employees feeling valued The national study found that opportunities for happens when companies invest in them personal development that have value beyond through a variety of means. Traditional perks a person’s current role is the #1 type of training are an understood valuation of employees and that shows a company values its employees. are certainly tied to tenure and commitment. In light of the training emphasis that comes However, there are also less obvious ways in with claims positions, this is yet another way which employers can communicate value to insurance claims departments can gain traction employees. Top on the list is training. in their Millennial and Gen Z recruitment efforts.

Training in a variety of forms is an important Bottom Line: Add and increase opportunities way to appeal to job applicants. But it also for personal development and communicate holds tremendous appeal for current employees, this in recruitment efforts as well as to current especially Millennials and college-aged Gen employees. If Millennials and Gen Z understand Z. These generational groups highly value that a company is willing to invest time and education and see training as a way for a money for training and personal development company to invest in its people. Particularly even beyond the current job position, they will appealing to this group is training that has long- feel that they are truly valued as employees. This term benefit, even if they were to move into a in turn makes them more likely to apply for a job different role, position, or job. in the first place and more likely to stay.

Millennials and Gen Z are both similar to and it as one of the most appealing aspects of a different from older generations in how they job. They also value the opportunity for non- seek out and make employment decisions. But traditional work arrangements including flexible this process doesn’t have to be a mystery to days or work hours. insurance claims departments seeking to attract and retain this youngest workforce segment. Training is very important to Millennials and There are simple practices that can have strong Gen Z. These groups will critically look at the appeal to this group. amount and type of training they will receive in the first year and this information will heavily The national study revealed several key elements influence their decision to apply. But training that, when present in a job posting, go a long is also critical for companies to show that they way toward turning Millennial and college- value their employees. Providing personal aged Gen Z job seekers into applicants. At the development opportunities that reach beyond a top of the list is salary, with salary range being person’s current role is the number one type of listed as the number one “must-have” on an training that conveys this message of employee employment website for younger job seekers to value. This is paramount for the claims industry apply. Salary is followed closely by traditional to understand because how an industry treats its benefits such as healthcare, retirement plan, people is the number one indicator Millennials and paid time off as items that would inspire and Gen Z are looking at when they decide to someone to apply for a position immediately. A look for a job. daily activities job description and opportunities for skill development and advancement are also The bottom line is that the insurance claims very important. Finally, ratings and review about industry is a great fit for Millennials and Gen the company from employees is the number one Z employees. As a whole, the industry already “must-have” for an employment website. offers much of what this age group most seeks in a job, from solid starting pay and benefits to The opportunity to help other people is a big valuable training. draw for Millennial and Gen Z and they name

Here are three quick suggestions from the study for insurance claims companies to be positioned for success with Millennials:

Provide and promote training. Training, from job-specific skills to 1. professional and personal development, is highly coveted and valued by Millennials and Gen Z. Let them know from the outset that this is a priority for employees throughout the organization and an integral part of the company culture.

Make non-traditional perks part of the culture. Millennials and Gen Z 2. value a wide variety of non-financial, non-traditional workplace perks. They value flexibility in their work schedules and environment, which can take the place of financial incentives such as bonuses when these are not available. But they also value other non-financial perks such as free office snacks, a small stipend to decorate their workplace, or the ability to bring pets to work. Each of these contributes to building a culture where employees feel valued by their employer.

Add rating and reviews to the company employment websites. Millennials 3. and college-aged Gen Z find a great deal of value in seeing ratings and reviews from employees on employment websites. This adds credibility and authenticity to both the company and the employment website. Plus, a large number of younger would-be applicants consider it a must-have!

Property & Liability Resource Bureau The Center for Generational Kinetics The PLRB is a trade association of property and The Center for Generational Kinetics is the leading casualty insurance companies representing about research, speaking, and solutions firm focused on 85% of the P & C insurance force in the United States. Millennials, Generation Z, and solving generational The association provides its members with: challenges. The Center’s team of PhD researchers, strategists, and keynote speakers help leaders around • Exclusive use of extensive databases for Property the world solve tough generational challenges in & Casualty coverage research, as well as a staff of areas ranging from employing multiple generations in-house coverage attorneys; or recruiting Millennials to selling and marketing to • Essential education and training services to help Millennials and across generations. claims people and defense attorneys develop and maintain their professional skills; this Each year, The Center works with over 150 clients training takes the form of webinars as well as around the world, from car manufacturers and global distance learning modules and five conferences hoteliers to insurance companies, hospital chains, with continuing education and continuing legal and international software firms. The Center’s team education credit for most subjects taught; and is frequently quoted in the media about the effect of generational differences on everything from shopping • Catastrophe data and information in spatial and parenting to work style and social media. Learn formats as to hail, wind, tornadoes, wildland fire, more about The Center at earthquakes, riots, and technological disasters. Learn more at GenHQ.com. For more information, visit PLRB.org.

PLRB and The Center for Generational Kinetics jointly led this research study. The survey was administered to 1,253 U.S. adults ages 18-39 with a 25% oversample of college-aged Millennials and Gen Z (ages 18-23). The sample was weighted to the current census data for age, gender, and region, and participants were screened to currently be in college, have at least some college education, or to have a trade school or college degree.

The survey was conducted online from September 2, 2016, to September 7, 2016, and has a margin of error of +/-3.1%.

The information in this document can be referenced in the media, in whole or in part, as long as this document is cited as the source for the information. In no way does this document provide an endorsement of any product, service, company or individual.

This document is provided “as is.” Information and views expressed in this document may change without notice. The strategies and examples depicted herein are provided for illustration purposes only and are not guarantees of specific results. You bear the risk of using this document.