Risk Insider: Jon Hall

Risk Management and Millennials

By: | February 27, 2018 • 4 min read
Jonathan W. Hall is chief operating officer at FM Global. He oversees FM Global’s insurance operations and insurance staff functions, as well as the FM Global Resilience Index, a data driven resource that ranks the business resilience of 130 countries and regions. He can be reached at [email protected]

Are you afraid to hire millennials? Do you fear if you do, after all the time and investment your company puts into them, they will just get up and leave your organization in two or three years’ time?

Nothing could be farther from the truth, and that kind of thinking can leave your organization at a competitive disadvantage. As the last of the millennial generation begins to enter the workforce, and the first of that group approach their 40s, it is clearer than ever risk management offers millennials everything they are looking for in a career to make them want to stay for the long-term — growth, challenges and cutting-edge technology.

That’s important because in the United States, 10,000 people will turn 65 every day between now and 2030, according to the U.S. census bureau. While many of those folks will still be working after age 65, it’s no secret that the brain drain on the risk management and insurance industries will be in the hundreds of thousands of people over the next several years.

The Millennial Generation is where we will find the human talent to fill those gaps and position risk management for growth in the future.

In fact, the steps we should be taking to attract millennials are the very same things that set any good business apart from its competition — investing in people, our most valuable asset. It’s been my experience that loyalty is a two-way street; when companies invest in people, people invest in companies.

According to a survey of 1,100 U.S.-based millennials working for FM Global and four other large companies, the most significant factors in employer selection criteria for millennials are career growth, salary, benefits, job security, work-life balance, skill development and interesting work. Importantly, 60 percent of people in the study said they preferred to stay with their current employer, while only 25 percent thought changing employers was the best way to advance their careers. That’s great news!

Today, risk management is not about simply identifying ways to transfer risk; it is about creating a holistic approach to business resilience and maintaining a competitive advantage. But in order to educate millennials about all of the opportunities in risk management, we have to tell our stories.

So what can we do to attract and retain millennials (and others for that matter)?

At FM Global, we heavily invest in enterprise learning programs designed to provide our employees with the skills and knowledge they need now and in the future to continually grow their careers.

For example, we have recently revamped our risk management engineering training program to leverage our newly built 40,000 square foot FM Global Learning Center outside of Boston, Mass. Here students (whether they are employees or risk management clients) receive instruction in specially designed “active learning” classrooms using the latest technology that foster creativity and critical thinking. Each classroom is equipped with surface computing (huge touch screens with built-in intelligence) and interactive whiteboards. There also are smartboards, mounted LCD projectors and video cameras.

In these collaborative classrooms, students work in groups using technology that helps them discover new skills. Facilitators interact with students and encourage critical thinking by discovering new methods and concepts that can be applied to their jobs. This type of learning keeps them excited and engaged.

This program has streamlined our engineering training program from 18 months to just 12 months!

There has been much written that millennials, as a generation, are quick to move from job to job and have no loyalty. The research says differently. In fact, overall, millennials who are happier with their jobs are more likely to be satisfied with their careers and lives and in turn will work harder and stay with their current employer.

The key is they need to be challenged and have the opportunity to do different things. In my own career, I’ve had multiple jobs — starting as an account underwriter, working my way up to senior vice president of underwriting and reinsurance before being named an executive vice president and then chief operating officer.

The great thing is, I have had the opportunity to change jobs all while working for the same company for more than 30 years. When there are opportunities for an employee to grow in their career, and companies are willing to promote from within, your employees will stay with you.

Finally, risk management is an exciting field with multiple opportunities for challenging work and career growth. Today, risk management is not about simply identifying ways to transfer risk; it is about creating a holistic approach to business resilience and maintaining a competitive advantage.

But in order to educate millennials about all of the opportunities in risk management, we have to tell our stories.

At FM Global, we don’t just go to college campuses to recruit student talent — although that is an important part. Telling our stories means senior executives sitting down with employees at all levels — whether Generation X, millennials or the soon-to-enter-the-workforce Generation Z — and engaging in active conversations. It means listening to your people and understanding their wants and needs and actively working to ensure your company reflects the people who work for it.

The secret to success is simple: Invest in your most important asset — your people.

More from Risk & Insurance

More from Risk & Insurance

4 Companies That Rocked It by Treating Injured Workers as Equals; Not Adversaries

The 2018 Teddy Award winners built their programs around people, not claims, and offer proof that a worker-centric approach is a smarter way to operate.
By: | October 30, 2018 • 3 min read

Across the workers’ compensation industry, the concept of a worker advocacy model has been around for a while, but has only seen notable adoption in recent years.

Even among those not adopting a formal advocacy approach, mindsets are shifting. Formerly claims-centric programs are becoming worker-centric and it’s a win all around: better outcomes; greater productivity; safer, healthier employees and a stronger bottom line.

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That’s what you’ll see in this month’s issue of Risk & Insurance® when you read the profiles of the four recipients of the 2018 Theodore Roosevelt Workers’ Compensation and Disability Management Award, sponsored by PMA Companies. These four programs put workers front and center in everything they do.

“We were focused on building up a program with an eye on our partner experience. Cost was at the bottom of the list. Doing a better job by our partners was at the top,” said Steve Legg, director of risk management for Starbucks.

Starbucks put claims reporting in the hands of its partners, an exemplary act of trust. The coffee company also put itself in workers’ shoes to identify and remove points of friction.

That led to a call center run by Starbucks’ TPA and a dedicated telephonic case management team so that partners can speak to a live person without the frustration of ‘phone tag’ and unanswered questions.

“We were focused on building up a program with an eye on our partner experience. Cost was at the bottom of the list. Doing a better job by our partners was at the top.” — Steve Legg, director of risk management, Starbucks

Starbucks also implemented direct deposit for lost-time pay, eliminating stressful wait times for injured partners, and allowing them to focus on healing.

For Starbucks, as for all of the 2018 Teddy Award winners, the approach is netting measurable results. With higher partner satisfaction, it has seen a 50 percent decrease in litigation.

Teddy winner Main Line Health (MLH) adopted worker advocacy in a way that goes far beyond claims.

Employees who identify and report safety hazards can take credit for their actions by sending out a formal “Employee Safety Message” to nearly 11,000 mailboxes across the organization.

“The recognition is pretty cool,” said Steve Besack, system director, claims management and workers’ compensation for the health system.

MLH also takes a non-adversarial approach to workers with repeat injuries, seeing them as a resource for identifying areas of improvement.

“When you look at ‘repeat offenders’ in an unconventional way, they’re a great asset to the program, not a liability,” said Mike Miller, manager, workers’ compensation and employee safety for MLH.

Teddy winner Monmouth County, N.J. utilizes high-tech motion capture technology to reduce the chance of placing new hires in jobs that are likely to hurt them.

Monmouth County also adopted numerous wellness initiatives that help workers manage their weight and improve their wellbeing overall.

“You should see the looks on their faces when their cholesterol is down, they’ve lost weight and their blood sugar is better. We’ve had people lose 30 and 40 pounds,” said William McGuane, the county’s manager of benefits and workers’ compensation.

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Do these sound like minor program elements? The math says otherwise: Claims severity has plunged from $5.5 million in 2009 to $1.3 million in 2017.

At the University of Pennsylvania, putting workers first means getting out from behind the desk and finding out what each one of them is tasked with, day in, day out — and looking for ways to make each of those tasks safer.

Regular observations across the sprawling campus have resulted in a phenomenal number of process and equipment changes that seem simple on their own, but in combination have created a substantially safer, healthier campus and improved employee morale.

UPenn’s workers’ comp costs, in the seven-digit figures in 2009, have been virtually cut in half.

Risk & Insurance® is proud to honor the work of these four organizations. We hope their stories inspire other organizations to be true partners with the employees they depend on. &

Michelle Kerr is associate editor of Risk & Insurance. She can be reached at [email protected]