Generation X

Rough Notes, Sep 2000 by Loomis, Judi E

Changing the landscape in the insurance industry

As each generation passes, it receives a label that speaks to the significance of that period's youth.

Today's society recognizes two very distinct and different generations, the Baby Boomers and Generation X. Born between 1946 and 1964, Baby Boomers grew up in an industrial era, where a career meant staying with one company for many years. Gen Xers, the twentyand early thirty-something's born between 1965 and 1979, have arrived in the boardrooms and are becoming a significant force in revolutionizing the culture and management practices in their organizations.

However, Gen Xers have an entirely different outlook on life, work and their careers. The crossover between Baby Boomers and Gen Xers in the work place occurs every day. While many Baby Boomers are still at the helm of corporate America, Gen Xers are moving in, and what they expect from management and how they manage is very different from what most companies are accustomed to. How will the two distinctly different generations blend, especially in the insurance industry? Some insurance company representatives say it's been a real challenge, while others in smaller agencies report a nice marriage-albeit with a learning curve.

Identifying Generation X's needs

Through the years, Gen Xers have been stereotyped as lazy, unmotivated know-it-alls who resolve not to form a long-term allegiance with any one company or agency These impressions and opinions were apparently formed based on a misunderstanding of what the Gen Xers are seeking as their niche in life. Gen Xers have had the opportunity to observe big businesses collapse and promises broken. They've had an opportunity to observe large corporate lay-offs and disintegrating stock returns during the '80s. In many cases, their own parents experienced the betrayal of allegiances to companies when, after years of commitment, they too found themselves unemployed and without the benefits they were promised. "I think that my generation was more committed to the corporate vision and the belief in the company," says Rick Morgan, managing director for AllianceOne, and executive editor of the TAARReport. "The Gen Xers saw what happened during the '70s and '80s when lifers with companies such as IBM and Aetna experienced huge cutbacks. They thought they had a cradle-to-grave relationship and suddenly they found themselves unemployed. It raised all kinds of havoc, and I think those kids saw that, took note and said that's not going to happen to me!"

Morgan's daughter, Andrea, is a freelance writer for The Automated Agency Report (TAAR) and a Gen Xer. She concurs that the standard of commitment to one company in the past created a poor model for Gen Xers who make up a significant portion of our workforce. "We have an aversion to long-term employment commitments because of what we saw our parents go through," she says. "If we get into a work environment that we don't like, we are not afraid to move. That doesn't mean that we are not committed while we are working there; we just see it as spending a lot of time in a work environment that isn't enjoyable. We want to enjoy being at work now, and not wait ten or twenty years, or until we retire!"

In reality, Gen Xers are extremely motivated to succeed because it drives their lifestyles. Consider what some believe to be the motto reflecting on both generations; Baby Boomers live to work, Gen Xers work to live. While Boomers have long been regarded as a generation that finds a comfort level with long-term employment with one company, (which may have provided them with a false sense of stability), Gen Xers are considered risk takers who welcome change and utilize technology to achieve results more quickly "We look for an employer who can offer worklife flexibility and is able to bring some fun aspects into the environment," says Andrea. "Gen Xers also look for an employer who is technologically advanced because we grew up with computers and that's very important to us:'

"Our priorities are very different," says Lisa Marciano, sales representative for Appleby & Wyman Insurance Agency and Financial Services in Beverly Massachusetts. "I think that Gen Xers are equally-if not more--concerned about family enrichment as the Baby Boomers are. They want to provide themselves and their families with all the things that will make their lives full. This includes nice vacations, club memberships and good schools for their kids."

Lazy, unmotivated-hardly!

Marciano, who is 30 years old and has worked in both the agency world and for an insurance company, trains Gen Xers on the job. "There most definitely is a strong work ethic, and they have a lot of pride in what they are doing," says Marciano. "When somebody calls in for a quote, they want to be able to write that business. At the fast pace the insurance industry demands today, they just wouldn't make it here if they weren't motivated to learn."

Generation X's management views

Studies over the past several years indicate that the Generation X crowd will not stay at the same place of employment for longer than five years. In most cases they move on before they hit the three-year mark. Attracting and retaining Gen Xers for long-term employment appears to be an intense global problem. According to a 1998 survey conducted by Sibson & Company, 55% of employees plan to quit or think often of quitting before even hitting the three-year mark. Gen Xers aren't hopping from company to company because of the pay. It's related to job dissatisfaction. Typically Gen Xers view money as a necessity, but not a sufficient reason for staying with one company. It's the quality of work itself and the relationships that they build within the workplace. "Gen Xers are much more relationship-oriented while my age group was more results-oriented," says Rick Morgan. "I believe that relationship building is more important to them in their work environment and in their sales processes. And if they can't build on those relationships at a company or an agency, they will find a place where they can do that."