Recruiter Report: Finding the “Perfect” Candidate

After years of shifts in the insurance labor market, we’re experiencing a more stable—yet still challenging—talent landscape in 2025. The industry's unemployment rate sits at just 2.5%, notably lower than the national rate of 4.1%. Not surprisingly, in our conversations with hiring managers, we continue to hear the same thing: finding top performers remains difficult, especially for specialized roles.

Many organizations remain focused on finding the "perfect" candidate, one who checks every box. However, the most successful companies have shifted their approach, redefining what the ideal candidate looks like in today’s market. In this edition of Recruiter Report, we explore the question, “How do you hire the right candidate in today’s market?”

Acknowledge the current talent landscape.

The insurance industry continues to experience a competitive recruiting environment. According to The Jacobson Group and Aon’s Q1 2025 Insurance Labor Market Study, six of 11 functional areas are more challenging to recruit for than they were a year ago and nearly all positions remain at least moderately difficult to fill. Organizations that take a realistic and creative approach to recruiting will be best positioned to secure top talent. Here are a few key factors to consider:

• Insurance professionals with specialized expertise are in particularly high demand.
• Return-to-office mandates further limit available talent pools.
• Professionals are unlikely to make lateral moves; they expect advancement opportunities.
• Candidates are evaluating potential employers just as critically as employers evaluate them.
• Top talent often receives multiple offers, giving them strong negotiating power.

Focus on must-have skills.

In a tight labor market, distinguishing between essential and trainable skills is crucial. While specific insurance knowledge may be non-negotiable for certain roles, many technical skills can be learned. Identifying which skills are true day-one requirements versus those that can be developed over time will significantly expand your candidate pool.

One of the most effective ways to attract strong candidates is to rethink rigid experience criteria. Ask yourself if 10 years of experience is truly necessary when a candidate with seven years has demonstrated exceptional growth and capability. Also, consider whether requiring specific designations is necessary. Many professionals are eager to earn credentials and continuing education credits on the job if given the opportunity.

Explore your team’s future needs.

Before finalizing job requirements, take a step back and think strategically about your team's trajectory. What are your department's goals for the next one-to-three years? Which soft skills or technical acumen will become more important over time?

Sometimes the right hire is someone with skills that lend to innovation, rather than someone with extensive traditional experience. Assess your team's strengths and identify complementary skills that would enhance overall effectiveness and impact. The gap you need to fill might not be what you initially expected.

Identify what makes your current employees successful.

Look at your top performers. What qualities do they share? These traits often differ from those traditionally listed in job descriptions. The most successful employees may come from a variety of backgrounds, bringing transferable skills that allow them to thrive in ways that go beyond industry-specific experience.

Pay special attention to problem-solving approaches, communication styles, adaptability and analytical thinking. These soft skills often predict success more accurately than technical knowledge alone.

Consider growth-minded individuals and invest in upskilling.

Candidates looking for their next career step often bring energy and drive that can transform your team. Professionals in the three-to-five-year experience range are typically eager to prove themselves and take on new challenges. What they might lack in experience, they make up for in enthusiasm and fresh perspectives.

Though these growth-minded professionals are often strong hires, upskilling them is key. The best organizations implement regular development-focused check-ins – not performance reviews, but genuine conversations about progress toward closing skills gaps. When employees know you’re investing in their growth, they often respond with increased loyalty and engagement.

Determine the candidate’s interest level.

As you talk with candidates, keep an open mind and evaluate both their potential fit and their genuine interest in the role. In early conversations, ask questions to reveal their true motivations:

What is lacking at your current employer that made you open to other opportunities? If their primary concern is remote work flexibility, they may not be fully committed to making a move and could be planning to leverage your potential offer to negotiate with their current employer. Look for deeper motivations, such as career growth, leadership opportunities or cultural misalignment, to gauge genuine interest.

What stands out about this role? What made you want to hear more? Pay attention to how well they articulate their interest. Are they drawn to the responsibilities, company culture or long-term potential? Their response can help determine if there's a strong fit.

How do you envision your future career path? Consider whether their long-term aspirations align with what your organization can realistically provide. A candidate seeking rapid advancement may not be the right fit for a position with limited growth opportunities, while someone who values stability may thrive in a more structured environment.

What do you enjoy most in your current role and why? This helps reveal what truly drives them – whether it’s problem-solving, collaboration, autonomy or leadership. Comparing their response to what your role offers can help determine if they will be engaged and satisfied in the long run.

Additionally, establishing compensation expectations early in the process prevents wasted time on both sides and ensures you can make a competitive offer if they're the right fit. For specific strategies on maintaining momentum in the hiring process and extending compelling offers, view our past editions of Recruiter Report.

As the insurance industry continues to navigate a competitive labor market, organizations must adapt to secure top performers. The “perfect” candidate isn’t always an exact match - by focusing on transferable skills, growth potential and future team needs, you can identify the right hire for long-term success. Prioritizing upskilling allows you to build teams that meet immediate needs while evolving with your organization’s future demands.

Has your organization successfully hired and developed employees who initially lacked some “required” skills? Share your thoughts in our latest LinkedIn poll.