The insurance industry is now at the threshold of a talent crisis and we’re already starting to feel it. Our concern is that it’ll continue to worsen if it’s not addressed head-on and in a serious manner. That’s not to say we aren’t seeing talented professionals entering the insurance space, because we are. The question is if we’re seeing enough of them to meet demand; I don’t think we are.
It’s not just personnel, it’s also a growing loss of vital intellectual equity on the back-end. How we approach these next three, four, or five years will be critical if we want to avert a potentially disastrous situation.
Human Capital is ‘human,’ after all. And there is no ‘one-size fits all’ when it comes to recruiting and retaining talent. To change, we are going to need more creativity and flexibility in the approach. We need to begin looking at the idea of talent attraction not as a contest amongst P&C carriers and insurance-related firms, but as a competition between the insurance industry and all other professions.
The Frog in a Pot – Time is Running Out
Most people today may not be familiar with the old tale of how to boil a frog in a pot. Let’s focus less on the culinary choice and more on the practical mechanics for a minute. You don’t raise the temperature of the water too quickly which may prompt the frog to leap out of the pot; rather, the heat should be raised gradually, unbeknownst to the clueless reptile who is completely unaware of its impending fate. For years companies have unwittingly sat in their own boiling pot, either unaware of the talent crisis looming just over the horizon or worse, knowing of the crisis but doing little to adequately prepare themselves for the looming challenges. Today we are rapidly approaching the boiling point, confronted with the onset of the Boomer retirement wave coupled with organizational infrastructure inadequate for talent acquisition, development, and retention on the scale needed to sustain the type of growth companies need in order to thrive in an increasingly complex business environment. The time for comprehensive, concerted action is upon us.
Missing Marketing
Ask a handful of insurance professionals how they ended up in the field and chances are you’ll hear a plethora of stories describing how they “fell into the job” by chance. This type of happenstance strategy of filling roles is no longer tenable. While professionals in other markets – doctors, engineers, bankers, musicians, to name a few – seemingly know of their career path long before it starts, insurance professionals don’t seem to share the same long-term dream. Why is that? The answer in part is simple: poor advertising. While we all have seen our share of auto/home insurance commercials, these don’t quite fit the scope necessary for inspiring future claims and underwriting personnel. Rather, this kind of marketing is completely geared towards the consumer, not the prospective employee. How can a multi-trillion dollar industry get by this way? It’s no longer acceptable if we wish to change course for the better.
Look at the latest Army or Navy commercial and one cannot help but watch in awe at the sophisticated marketing acumen in action. We’ll readily admit that flying a fighter jet off the deck of an aircraft carrier is not equal to being an underwriter at a P&C carrier. However, even a fraction of this level of coordinated marketing would pay untold dividends in terms of attracting potential employees to the insurance market. While I don’t know what the future holds, I am certain that if we make no substantive adjustments, the industry won’t see the results necessary to effect meaningful change.
Reengaged with Recruiting and Retooled Training Programs
So where are companies currently engaging with their future talent or, better yet where are they not? The answer will obviously differ from company to company, as each will have their own set of talent needs and preferences. Put a different way, where should companies be focusing their efforts? To start, here are two key areas to start: early recruitment; and thoroughly developed professional training programs. In addition to improving marketing as mentioned above, these two aspects help broaden and diversify the kind of synergetic approach needed to bring the insurance industry level with its global financial impact.
The training program isn’t a brand new concept: turn the clock back to yesteryear and it was commonplace for a company to have extensive, curated training programs. That said, the need to evolve and improve remains. Companies need to ensure that they’re actively recruiting at the college level early – well before graduation day – giving rising sophomores, juniors, and seniors the opportunity to establish relationships and familiarize themselves with the company via summer intern programs. By delaying engagement, companies may lose out on the opportunity to build lasting relationships with key talent or lose them to other industries. In a market where job-hopping is the norm, refocusing on relationships with the individual will go a long way for an organization in terms of retention.
When commencement day has come and gone – and if companies have nurtured the right connections early – graduates can then join the organization on a full-time basis, entering training programs that are already well integrated with the organization. These programs not only act as a practical means of giving entry-level professionals the skills to excel in their new roles – they can also be nimble enough to evolve and pivot according to industry trends and company needs. This inherent flexibility is demonstrative of the kind of agility companies need to adopt so as to not be caught flat-footed when faced with the next industry crisis.
Let’s Act Now
It is common knowledge that the industry is facing a talent problem – it’s been a recognized conundrum for years. Unfortunately, because the right steps have not been taken, circumstances have become exacerbated considerably. The good news is that since we have knowledge of the issue, we can begin work on concise, thoughtful, and well-articulated action to ensure that the next generation of industry professionals aren’t lamenting the same challenge when it comes time for them to retire.