There is a good deal of talent in the insurance industry, however, unlike many other industries, the insurance workforce is an aging one. Research conducted in the US shows that the workforce will continue to get older – show that the labor force participation rate of those aged 55 years and older has been increasing since 1996. Though the trend is on a slight decline, the Baby Boomer generation is still marching toward retirement. . As the pandemic drove many into early retirement, industries everywhere are facing an inevitable shortage of workers and the retirement bubble is poised to burst.
For organizations looking to compete in a tight labor market and appeal to a new generation of workers, it means tackling a significant challenge. The skill sets needed to replace valuable employees is eclipsed by the need to adapt to a more mobile workforce.
That challenge is compounded within the insurance industry. Organizations are not just competing with other insurance entities, but with every industry for talent. Attracting Millennials and Gen Z talent means finding new ways to appeal to job seekers who have shown little interest in the insurance industry, up to this point.
Yet, once they are hired and enter the industry, it seems the younger generations are content with their industry choice – to family or friends. In other words, those who are hired are retained.
We in the insurance industry need to reconceptualize talent. We need to revamp every part of the hiring process, including the role criteria, job descriptions, interview questions, and candidate assessments. We need to reimagine how we evaluate candidates and leverage better skills-based criteria that enables us to reach a different audience of jobseekers. , increasing the number of candidates that could fit those open positions.
What is clear is we need to ensure our hiring processes meet the needs of today’s workforce and we continue to build a more diverse workforce that will meet our industry’s future needs.
The industry needs to focus on data and analytics, actuarial skills that can more accurately assess risk in the climate crisis, and technology skills that enable innovation and drive progress.
We in the insurance industry need to reconceptualize talent. We need to revamp every part of the hiring process, including the role criteria, job descriptions, interview questions, and candidate assessments.
Embrace Transferable Skills
Finding people who bring these skills means viewing backgrounds differently. Your next employee may have zero insurance experience but may have the skills to drill into data and analyze trends and opportunities. Your next employee may not have a university degree but has a community college degree and an apprenticeship program background in business management, technology, artificial intelligence or robotic process automation. These are critical skills that the insurance industry needs right now.
Finding talent at all requires a much more proactive approach. Historically, the industry has attracted friends and family of those already in the industry. Active recruiting at universities is a much better place to find a more diverse set of skills, and a diverse population of potential candidates.
One exercise that can help organizations find the right candidate is to view profiles from a different angle. Instead of trying to match each candidate to the job description, try instead to flip the script. Look at the skills each person possesses. What about their background would be an asset?
Reskill and Train
The insurance industry can no longer assume that the perfect candidate with the right skill set will be available in a highly competitive labor market. Due to the rapid pace of change the industry is facing, those employees are in high demand. Instead, organizations should be looking at both job seekers and existing employees to identify opportunities to train or refocus skills into new positions.
That requires an investment of time and, depending on the type of skill needed, formal training courses or on-the-job mentoring. When hiring a job seeker, look for highly competent workers who can hit the ground running. That same training and focus on improving skills can help organizations retain employees, as well. Giving employees the tools needed to move up in the organization improves job satisfaction and improves operations overall.
Again, flip the script. When your organization is considering each candidate, look at how the skill sets can, with additional training or mentoring, be best utilized to help your organization meet the new challenges of a changing insurance landscape.
Hiring candidates who think and approach your industry differently can be a huge asset as the industry grapples with large climate events, nuclear verdicts, social inflation, and ever-increasing claim frequency and severity. To effectively evaluate risks, we need people who will challenge one another and pick up on issues that may have been overlooked.
Diverse Perspectives
Diversity of thought answers two dilemmas: how to improve internal processes and how to respond to the expectations of clients, customers, brokers and regulators to provide equitable opportunities. Including a variety of backgrounds and understanding the role that a strong ESG (Environmental, Social, Governance) approach plays in the success of the organization will indeed attract a new generation to the insurance industry.
How an organization embraces ESG matters to job seekers. New generations entering the workforce are placing significant importance on environmental and social concerns. .
Organizations are already noticing and responding. s.
Adapting to a New Dynamic
Work and how we perform our jobs is changing rapidly. With such complex shifts in workforce demographics, location, and tools, building a more agile hiring process is critical to keeping an organization staffed.
Attracting talent to the insurance industry takes a more proactive approach to hiring and retention than the industry has done previously. Job seekers want to know companies offer career advancement and on-the-job growth opportunities, are committed to devoting resources to ensuring employees succeed, and embrace the same social and environmental stances within their organizations.
To attract job seekers, it is paramount to ensure that we are actively building an inclusive and diverse workplace culture to ensure that it is ready for the next generation of insurance professionals. In the future, our bright, new t employees may have had minimal exposure to the insurance industry but bring a new skill or perspective that could be an industry gamechanger. By shifting our perspective at hiring time, we can attract and retain talented people who can drive our industry forward.
About the Author
Anna Beninger is Global Head of Inclusion & Diversity, helping design, position and deliver AXA XL’s enterprise-wide diversity, equity and inclusion (DE&I) strategy reaching across 10,000 employees in 28 countries by embedding DE&I into all areas of our business, talent strategy and operational plans. She can be reached at anna.beninger@axaxl.com.
