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Overcoming Today’s Talent Challenges

  

By Jack Walsh, Managing Director, The Jacobson Group

The insurance labor market has been in a constant state of change throughout the past few years. From the uncertainty of the pandemic to the most difficult recruiting environment many of us have ever experienced and almost everything in between, the ability to adapt has been paramount. Now, as the industry ages, average tenures shorten, and employee expectations shift, the industry is facing a variety of both emerging and ongoing talent challenges.

Navigating the Current State of the Labor Market

The overall U.S. labor market continues to experience low unemployment, remaining below 4% for the past two years. Yet, unemployment for the insurance carriers and related activities sector1 has dipped even lower, averaging just 2% in 2023. The industry is also continuing to add jobs – exceeding the 3 million mark and increasing by nearly 60,000 jobs in the past year alone, further compounding an already tight market.

The Jacobson Group and Aon plc’s Q1 2024 Insurance Labor Market Study2 , conducted in Jan. 2024, found 52% of insurance carriers plan to add staff in the next 12 months, driven by an expected increase in business volume. Twenty[1]eight percent anticipate maintaining their current staff size and just 10% plan to decrease staff. Yet, while just over half of respondents plan to increase their headcounts, 77% expect to grow revenue in 2024, driven by an increase in market share.

We’re still experiencing employment growth, although the industry seems to be acting with more caution compared to the incredibly active labor market experienced two years ago. Voluntary turnover hit an all-time high watermark in 2022, according to Bureau of Labor Statistics data. During the widely-publicized “Great Resignation,” professionals were making moves they’d put on hold during the pandemic, while reevaluating their personal and professional priorities. At the same time, insurers were determining their needs and plans for moving forward longer term. Now, this extreme reshuffling has settled, and movement has slowed. 

Yet, in this post-pandemic environment, where many norms have shifted, it’s essential for insurers to rethink how they approach recruiting and retention. To stay competitive, leaders must acknowledge the current landscape and be intentional and strategic in their talent strategies.

Building a Loyal Workforce Through Employee Retention and Development

Many of today’s professionals won’t hesitate to seek out new opportunities if their current company is unwilling or unable to meet their needs in areas such as work-life balance, flexibility, advancement opportunities, and more. A positive and holistic employee experience, complemented by personalized retention plans, is key for cultivating a loyal workforce. While employees may weight various elements differently, there are a few common areas of focus for creating an environment where individuals feel valued and fulfilled.

Focus on culture.

Regardless of how strong your corporate culture was prior to the pandemic, ensure it effectively translates to today’s environment. While your company values may be written out and shared with those in the organization, how you approach employee development, goal setting, team meetings, advancement opportunities and more provide a more accurate picture into whether your organization is truly guided by these standards. Consider the ways your culture is outwardly reflected – both directly and indirectly – and ensure it affirms your corporate values.

Foster a sense of connection.

When employees feel connected to their colleagues and company, they’re typically more engaged, productive and satisfied with their roles. However, these relationships developed more naturally when teams were working together in the office every day. In today’s remote and hybrid workplaces, it’s important managers are intentional about initiating these opportunities and helping employees develop a sense of camaraderie and shared purpose. Provide the time and space for teammates to get to know one another, whether it’s through one-on-one virtual meetings, in-person lunches, quarterly team-building events or other activities. Additionally, seek out opportunities for individuals to engage with the larger organization and when appropriate, partner them with internal coaches and mentors.

Offer flexibility.

Flexibility continues to be a top priority among many professionals. Our insurance labor market study found 86% of insurers currently offer flexible hours and just 6% expect the majority of their employees to be in the office every day. Hybrid and remote work have become the norm for many industries, including insurance. If your team is considering asking individuals to come back into the office full time, be thoughtful in how you approach this decision. We’re seeing younger generations increasingly embracing in-person work and welcoming the learning opportunities it provides, while other professionals feel they do their best work and are more productive when working from home. Explore the benefits you’re aiming to achieve by requiring employees to come back into the office, determine if those same goals can be reached by meeting in person once a month or quarter, and include employees in your decisions when possible.

Chart clear career paths.

One critical factor in retaining your top talent is ensuring they can clearly visualize their futures with your organization. Seek to understand what motivates and energizes them, as well as the ways in which they aspire to grow and develop. This may not always be a linear path. In addition to promotions, consider how you can be creative with cross-functional moves or project opportunities, ensuring they align with the individual’s career aspirations and your organization’s needs. Talk with your team to better understand how you can support their unique career goals. Then, provide them with the training and continuing education that builds their skillsets and prepares them for success when they take their next step.

Promote employee wellness.

In remote and hybrid environments, boundaries are often less clear and can impact employees’ wellbeing and feelings of work-life balance. Encourage taking time to destress and decompress, while leading by example and setting the tone through your own actions. Be clear in your expectations around productivity and performance, while also allowing individuals the time to recharge and focus on priorities outside of their work.

Tailoring Recruitment Tactics to Attract Top Talent

While developing and growing professionals from within should be a prominent part of your talent strategy, some turnover is inevitable. Additionally, retirements and evolving business needs create vacancies and skill gaps, making it vital for companies to be able to effectively recruit outside talent. There are several best practices to help ensure you’re reaching qualified individuals and remaining competitive in today’s market.

Redefine required qualifications.

Determine the skills needed for the position you’re hiring for and then consider which similar roles or industries may also require that same foundational knowledge. Communication, coaching, problem-solving, strategic vision, time management, growth mindset and emotional intelligence, among others, are skills that are more difficult to learn yet enable professionals to excel in countless positions. By understanding which assets are essential for coming into the role and which technical skills can be taught, you’re better positioning yourself for a more robust search.

Create compelling job postings.

In many cases, your job posting is a candidate’s first touchpoint with your organization. What do your postings convey about your company? If you’re using templated job ads that simply list requirements and responsibilities, it’s likely many qualified individuals aren’t bothering to click or stop scrolling. Ensure you’re talking about the role and your company in a way that connects with candidates and compels them to learn more. Make your posting easy to read and reflective of the company’s personality. Highlight key aspects of the job, opportunities for growth and only the vital requirements to avoid excluding qualified individuals who would otherwise excel in the role.

Step outside your comfort zone.

Depending on the position you’re aiming to fill, it may be beneficial to look outside your standard talent pool to include more expansive skill sets, personalities and characteristics. Career fairs, social media, traditional networking and professional organizations are all likely avenues by which your organization commonly acquires new talent. However, if you’re recruiting from the same programs and networking in the same places, you’re potentially limiting yourself to a small pool of talent. Explore how you can expand your network to avoid missing out on qualified individuals and to diversify your candidate base.

Focus on the individual’s “why.”

Identify and highlight the areas that are most impactful to each specific candidate. For some, this could be the ability to work from home full-time. Others may be more focused on career advancement and development opportunities or achieving a higher salary. In initial conversations, work to uncover why an individual is considering a new role and what it would take for them to make a move. By understanding this information, you can frame future conversations, as well as potential offers, in a way that best resonates and appeals to their unique needs. 

As the labor market continues to evolve, taking an intentional approach is key to building a strong bench of talent that can help your organization be successful now and into the future. Focus on what is most important to your current and future employees, and be open to adapting to support those needs, while still meeting your business goals.

Jack Walsh is a managing director for the executive search practice of The Jacobson Group, the leading provider of talent to the insurance industry. He can be reached at +1 (312) 884-0489 or jwalsh@jacobsononline.com.

1https://www.bls.gov/iag/tgs/iag524.htm insurance carriers and related activities sector 2

2https://content.jacobsononline.com/2024-q1-laborstudyresults Q1 2024 Insurance Labor Market Study 

Published in the Spring 2024 issue of Insights Magazine.

PIMA® (Professional Insurance Marketing Association®) is a member-driven trade association focused exclusively on the affinity market.

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