As we begin the new year, I find myself reflecting on the past year: triumphs, trials, and everything in between. In doing so, I’m looking to glean valuable insights and observations that may lend themselves to potential solutions for the obstacles and challenges we’ll face in 2025. 2024, like prior presidential election years, was similar yet distinct. It was largely defined by themes of instability, uncertainty, and confusion. These themes manifested themselves politically, where we saw a combination of frustration, ambiguity, and optimism. We saw it economically, the market painstakingly bouncing up and down. The Property and Casualty insurance industry was not immune to these conditions. We observed companies and employees alike impacted in unique ways which in turn has set the stage for 2025.
Set against the backdrop of a market in flux, employers took a “wait-and-see” approach with talent recruitment. Rather than aggressively filling roles, they opted instead to focus on retention until the economic landscape settled down. Employees on the other hand – many of whom had yet to see their compensation become aligned with inflation – felt the effects of the uncertainty as well. For talent, there was an expectation of broader industry movement and career opportunities compared to prior years. Unfortunately for both organizations and employees, the clarity never fully materialized.
So where did that leave everyone? In short, everyone ended up at the table unsatisfied and wanting more. While we don’t see the status quo as sustainable in the long run, there were instances where success was found despite the less-than-ideal circumstances. We saw this evident in the context of workplace arrangements, specifically Return to Office (RTO) mandates. While each company had their own reasoning, it became clear that those with RTO mandates who were able to remain fluid and flexible with hiring goals saw the most success. These companies decided to have a clear organizational identity and direction regardless of the circumstances. On the flip side, those that could not – or would not – adapt ultimately experienced longer hiring cycles and in some instances were unable to fill roles.
As we close the book on 2024 – a year that will be remembered for its frustration, uncertainty, and challenges – we look now to 2025. While we continue to anticipate substantial change, we’re unsure as to when or how it’ll happen. That said, a few things were made clear: the line has been drawn between companies implementing RTO and those that aren’t (or haven’t yet!), and the shortage of industry talent is becoming more exacerbated. Legacy habits and methods are no longer sufficient and instead are widening the talent gap. Moving forward, we must look to alternate resources to find the next generation of talent.
By Matt Nickens, Partner, Coleman Search Group
