Millennials & Workers’ Compensation Insurance

Topics: Workers' Compensation

Millennials became the largest generation in the U.S. labor force in 2016. These individuals, born between the years of 1981 and 1996, are now aged 22 to 39. The older end of the spectrum are well on their way to establishing themselves in their careers. The Pew Research Center reports that as of 2017, 56 million millennials were working or looking for work, as compared to 53 million Generation Xers and 41 million baby boomers. As more baby boomers reach retirement age, millennials will be entering their middle-aged years and taking over key senior positions within their companies.

Millennials in the Workplace

millennial worker in an office setting

By the year 2025, millennials will make up 75% of the workforce in the country. It’s important to note a few key characteristics of millennials’ work ethics and needs, including:

They enjoy flexible work schedules

Many millennials aren’t into the traditional nine to five workday. They enjoy options like working from home and flexible schedules that can adapt to their busy lifestyles. They even choose to forego traditional employment altogether and engage in the gig economy, working for employers like ride shares or starting their own freelance companies.

They want to do something meaningful

Most millennials want to feel like they are making a difference in the world, and they are focused more on finding satisfaction and meaning in their work. They also care about helping others and improving the environment, and they expect the companies they work for to share their philanthropic views. One study even found that 62% of millennials would take a pay cut to work for a responsible company.

They are team players

Millennials enjoy collaboration, believing that by working together they can better achieve their goals. Previous generations focused more on advancing the individual rather than the group, but millennials thrive in group settings and enjoy a highly collaborative workplace environment.

They expect quick responses to questions

The millennial generation grew up in the digital age, so they are extremely familiar with communications, media and advanced technologies. Everything has always moved at a quicker pace for them, and they’ve enjoyed constant connectivity to the world around them. In their minds, there would be no reason to not receive a response to a question within a 24-hour time period.

They want to expand their knowledge continually

Mentoring millennials throughout their careers is not only beneficial in advancing their skillsets, but it’s something they expect. They also enjoy understanding the “how” and “why” behind processes, digging into metrics and insights to get to the core of any issues or problems.

What Workers’ Compensation Carriers Need to Know about Millennials

Those on the younger end of the millennial generation are newer to the workforce, and understanding how insurance works or filing a claim may be unfamiliar concepts to them. Experiencing a work-related injury is stressful for even long-tenured employees, as it generally means time lost from work, initial out-of-pocket payments for medical bills and worrying about returning to the workforce as quickly as possible. For millennials, incorporating the values explained above throughout the insurance claim process can mean the difference between a satisfied employee and a dissatisfied employee.

It’s important that employers understand how to deal with a workplace accident, especially when a younger employee is injured on the job. Worker’s compensation carriers, likewise, should also be responsive and work together with the injured employee and the company to resolve claims quickly. Remember, millennials are an integral part of the workforce, and by addressing their questions and concerns efficiently after an injury can help them feel appreciated and valued.

The speed of which millennials’ workers’ compensation claims are handled, along with managing the process with care and compassion, also plays a role in keeping this younger generation satisfied. Many workers’ comp carriers still utilize a cumbersome paper system for processing claims, which means longer wait times for a resolution or answers to questions. This slower process can add to a millennial’s anxiety and stress over the situation and lead them to be dissatisfied with both their company and the insurance carrier.

What does this mean for the future of insurance? It will be important in the coming years for the insurance industry to adapt to modern technologies to keep pace with the millennial generation. This means utilizing artificial intelligence (AI) for more efficient claims and underwriting processes, for example, or leveraging chatbots to address employee questions as quickly as possible.

Data shows that millennials enjoy working more with insurance agents than older generations, so it will also be important for agents to learn how to work with this large demographic. AmTrust has tips for agents working with millennials. Millennials will also play an important part in staffing insurance agencies and carriers, as the aging insurance workforce continues to create an insurance industry talent crisis.

Workers’ Compensation Coverage from AmTrust Financial

AmTrust Financial is a leading workers’ compensation carrier for small to mid-sized businesses across the country. Ensure your employees are protected in the event of a workplace injury or accident by contacting us today to learn more.

This material is for informational purposes only and is not legal or business advice. Neither AmTrust Financial Services, Inc. nor any of its subsidiaries or affiliates represents or warrants that the information contained herein is appropriate or suitable for any specific business or legal purpose. Readers seeking resolution of specific questions should consult their business and/or legal advisors. Coverages may vary by location. Contact your local RSM for more information.

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