Insurance Crisis - The First 4 Steps to Recruiting College Students

The insurance industry is facing a crisis.

1. Twenty percent of the insurance workforce is near retirement age, compared to only 15 percent of the broader financial services workforce.
2. By just 2018, the number of the insurance workforce at near retirement age climbs to 25 percent.
3. No insurance company appears in Universum’s list of the”100 Most Desirable MBA Employers.”

With Boomers retiring in record numbers, the need to be proactive in attracting young talent is more imperative than ever before. However, many companies are not doing enough—if anything—to encourage the next generation of insurance leaders. In fact, when it comes to developing strategies to recruit the best and brightest, the insurance industry continues to lag behind other industries.

This discrepancy represents a significant opportunity for companies to improve the image of the insurance industry and get a leg up on the competition for highly qualified college graduates. Fortunately, there are key measures that can quickly help your organization gain visibility and make inroads to attracting your next workforce. These four simple steps can keep your company competitive in the college-recruiting scene.

1. Identify potential university partners and reach out to their student clubs.

One way to identify business programs in your area is to first tap your personal network. Ask if anyone you know has connections or kids who are currently enrolled in a specific college. You may also want to check university, business school, or program rankings. Some websites that may be helpful are: US News Top Insurance Programs, Businessweek Best Undergraduate Business Schools in 2013.

After identifying your target schools, the key is to bypass the Career Center (for the time being) and go directly to the students. Use the schools’ websites to find student club contact information. Within five mouse-clicks you can be connected with student leaders and club presidents. Some keywords to search are “Insurance,” “Risk Management,” “Actuarial,” or “Gamma Iota Sigma,” (collegiate insurance fraternity). Also consider Finance Club or Women in Business organizations if your targeted school does not have a specific insurance program.

2. Participate in an event on campus with a student club.

Many professionals are under the wrong impression that participating in club events is far too time-consuming. The fact is, the student club typically handles all the details of the visit, and your obligation is simply to attend and share your information. Types of events include:

• Employer Presentations - Present an interesting topic about your company, industry, relevant events, or any other interesting topic in which you have expertise.
• University sponsored golf outings
• Networking Events
• Mentorship Programs

3. Hire an intern

While your primary objective may be attracting top full-time talent, there are many immediate and lasting benefits of having an internship program alongside your new-hire program. Internships are a great way to test out potential new full-time hires. Additionally, benefits are not typically extended to interns making internships a fairly inexpensive proposition. The competitive pay for insurance student internships ranges from $12 to $19 per hour depending on the type of work performed and the geographic location.

Many schools also encourage unpaid internships in which the student receives course credit instead of a wage. This can be a great alternative if your company is willing to put in the additional effort needed to qualify, which includes reporting back to the university with information outlining the student’s responsibilities and describing the learning opportunities over the course of the internship.

4. Develop your “Student Network” by being an ongoing resource.

We all know that, “It’s not what you know, but who you know.” The adage also holds true when trying to attract the next generation of insurance industry leaders. When you connect with students from your local college or alma mater, give them your business card and encourage a follow-up. Offer to be a resource if they have questions about your career or about the insurance industry. It’s the personal connections that will allow you to have the inside track when top students enter the job market.

Many employers mistakenly believe that their contact with students ends when their presentations end. But companies that maintain communication and network with students are the ones that will stand out. Be assured that students talk with one other about the companies they like and want to work for, and your positive reputation travels fast on campus.

Rinse and Repeat

Recruiting and attracting young talent is a long-term effort that needs to continue over the course of several academic years. The hardest work is done upfront; once you’ve established yourself initially, these steps become increasingly easier to maintain. Additionally, once you have newly hired young talent working in your company, you can leverage their abilities to assist in your recruiting processes. With the groundwork in place, your company will begin to enjoy name recognition, and top students will seek out your company.

So put a reminder on your annual calendar to initiate your four steps again and keep your competitive skills in active practice. You’ll soon cultivate a top talent workforce and gain the edge in your market.

About the Authors

Nikole McMyler, Account Executive, Aon Risk Solutions, Wisconsin

Elizabeth Foste, Career and Outreach Coordinator at University of Wisconsin-Madison

[1] McKinsey & Company

[2] Ibid.

The views expressed by the author are the author’s alone and do not necessarily represent the views of Aon or its affiliates. The standard information provided in this blog is for general purposes only and should not be construed as, or used as a substitute for, financial or other professional advice.