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The Human Element of AI Transformation

Discover ways to effectively navigate through AI transformation. Only 4% of companies say they’re creating real value from their AI investments. The key differentiator is how well organizations manage the human side of implementation. 

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Recruiter Report: Find the “Perfect” Candidate

Finding top talent remains difficult in today’s labor market. However, holding out for the “perfect” candidate may mean losing out on high-potential individuals that would thrive in the role.

Read our blog post gain insights on redefining what the ideal candidate looks like and share how to take a realistic and future-focused approach to making the right hire.

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Recruiting Amid the “Great Realignment”

The insurance labor market continues to evolve. Insurers are undergoing a realignment, as they establish how their businesses will operate long-term, following the disruption of the pandemic. At the same time, the talent shortage persists and an already challenging recruiting climate is compounded by shifting employee expectations, hybrid environments and reestablished priorities. It’s necessary for organizations to lean into the evolving landscape and redefine how they attract the right talent to move business forward. In a recent issue of Compass, The Jacobson Group’s Judy Busby, senior vice president of executive search and corporate strategy, and Mike Abate, managing director, shared advice for remaining competitive in the current market. Their piece, “Recruiting Redefined: Staying Competitive Amid Realignment,” explores best practices for effectively positioning open roles, designing a positive candidate experience and investing in successful hiring outcomes. Below are a few of their insights. Broaden the talent pool.Be creative and inclusive in how open roles are structured to appeal to a broader range of qualified professionals, including those with non-traditional backgrounds. Rethink position requirements and distill postings down to only essential qualifications and experience. Consider how you can reduce in-office requirements to further expand your talent pool and eliminate geographic restrictions. As traditional insurance roles evolve and new needs emerge, focusing on transferable skills and prioritizing flexibility will enable you to cultivate a more diverse and future-focused candidate slate. Redefine the candidate experience. The current labor market is the tightest many have ever experienced. As a result, candidates have become more selective in their job searches and are accustomed to having the upper hand throughout the recruiting process. The pace of hiring has also accelerated, making it vital to showcase what your company and team have to offer during a condensed interview process. To be most impactful, communicate frequently, maintain momentum and tailor your approach to resonate with each individual candidate. Interview with intention.In today’s recruiting environment, it is likely candidates will be interviewing with multiple companies simultaneously. Ensure you’re taking a strategic approach to maximize the value of each touch point and enabling your team to make an informed and timely hiring decision. Align those involved in the interview process on the specific information they are gathering, the skills they are responsible for assessing and how you will objectively determine if someone is right for the role. Evolving your recruiting strategies to accommodate a more selective and discerning candidate base is essential to remain competitive amid the industry’s realignment. Read the full article for more on elevating the candidate experience and standing out in today’s labor market.

Q3 2022 Insurance Labor Market Results: Opportunities Abound

The industry is in the midst of one of the tightest labor markets many have ever experienced. Job openings have peaked in the past few months, voluntary quits are high, and we’re continuing to see an industrywide realignment as both professionals and employers assess their long-term needs and desired working environments. The results from our recent Q3 2022 Insurance Labor Market Study, conducted in partnership with Aon-Ward, indicate the tight market is not letting up any time soon. While 95% of insurance carriers plan to maintain or increase their headcounts throughout the next year, nearly half are finding their ability to hire more difficult than it was one year ago. This abundance of open roles provides a wealth of opportunities for professionals considering their next career move. Despite perceived uncertainty in the larger U.S. economy, 68% of insurers plan to add staff in the next year, which is 11 points higher than July 2021 and 5 points lower than January 2022. Anticipated increases in business volume is driving the need to add employees, followed by areas currently being understaffed. More than three-quarters of the insurers planning to hire seek experienced professionals, and 22% aim to hire entry-level employees. Of the 12 functions surveyed, actuarial is the most in need of entry-level individuals, with operations and claims close behind. As the industry continues to evolve and transform, technology roles remain in the highest demand, followed by underwriting and claims positions. Overall recruiting difficulty is unchanged from January, remaining at its highest level in the study's 13-year history. All functional areas except operations, sales/marketing and executive roles are considered more challenging to fill than one year ago. In addition to being most in demand, technology roles continue to be considered the most difficult to fill, followed by actuarial and analytics. Amid these hiring challenges, the use of temporary staff is also at an all-time high. Nearly all insurers (96%) plan to either increase or maintain their current use of temporary employees over the next 12 months. While COVID-19 restrictions have largely been lifted, flexibility continues to be a priority for most professionals. As organizations determine their longer-term operating plans, the majority of insurers plan to offer flexible working arrangements. Fifty-five percent of respondents plan to allow employees to work remotely full-time, up ten points from the January 2022 study. Additionally, 84% plan to offer hybrid work as offices reopen. The Q3 2022 Insurance Labor Market Study took place from July 11 through July 31, 2022, with participation from insurance carriers across all industry sectors. The semi-annual survey collects and examines data on insurance industry hiring, as well as revenue trends and projections. For more insight on the industry’s hiring plans and additional labor market details, view the full report. If you’re considering a career move, read our past posts on taking a mindful, focused and professional approach to your job search.

Insurers Anticipate Staffing Increase Over the Next Year Despite Recruiting Difficulty: The Jacobson Group

Published in Insurance Journal: Amid one of the most competitive labor markets the insurance industry has ever seen, talent is a top priority for most leaders. Although recruiting difficulty remains at its highest point, the majority of insurers are still planning to add to their teams in the next year. Read this article to explore more valuable insights into the recruiting climate and talent outlook.

Q3 2022 U.S. Insurance Labor Market Study Results

The Jacobson Group and Aon-Ward conducted a study to investigate hiring trends within the insurance industry. The following presents the findings of an insurance labor survey conducted in the third quarter of 2022...

August 2022: Labor Market Pulse

Competition for talent continues, with job openings in finance and insurance reaching a record level of 401,000 in June*, surpassing January’s revised record of 376,000 (originally reported as 411,000) and contributing to an average level of 367,000 open roles for 2022 so far. Comparatively, the same timeframe in 2021 (January through June), saw an average of just 252,000 open positions. The overall U.S. economy has experienced 19 months of continued job growth and saw an increase of more than half a million jobs in July, reaching February 2020’s pre-pandemic employment levels and surpassing economists’ expectations. The insurance carriers and related activities sector is nearing the same milestone, adding roughly 35,000 jobs this year. As insurers continue to make adjustments and realign to be most successful moving forward, it’s likely movement will persist amid an increasingly competitive recruiting climate. For additional insights on insurers’ hiring plans for the next 12 months, join us for a complimentary webinar on August 11, discussing the results of the Q3 2022 Insurance Labor Market Study. Register here. AT-A-GLANCE NUMBERS Unemployment for the insurance carriers and related activities sector decreased to 2.1% in July.  The insurance carriers and related activities sector gained 6,200 jobs in July. At roughly 2.8 million jobs, industry employment increased by approximately 50,800 jobs compared to July 2021. The U.S. unemployment rate decreased to 3.5% in July and the overall economy added 528,000 jobs.   INDUSTRY HIGHLIGHTS On a year-to-year basis, June* insurance industry employment saw job increases in agents/brokers (up 4%), TPAs (up 3.3%), title (up 1.1%), property and casualty (up 0.3%), and life/health (up 0.2%). Meanwhile, job decreases were seen in claims (down 2.2%) and reinsurance (down 1.1%). On a year-to-year basis, June* saw weekly wage increases in property and casualty (up 8.3%), claims (up 6.3%), title (up 5.3%), life/health (up 5.1%), agents/brokers (up 3.6%), and TPAs (up 2.9%). Meanwhile, wages decreased in reinsurance (down 3.3%).       BLS Reported Adjustments: Adjusted employment numbers for June show the industry saw an increase of 8,600 jobs, compared to the previously reported increase of 7,200 jobs. The BLS continues to revise numbers to be most accurate, which may contribute to inconsistencies, depending on when reports were pulled. *The BLS reports on wages and employment for the industry category are only available for two months prior. The source for the data represented in PULSE is the U.S. Bureau of Labor Statistics. Insurance data is derived from the insurance carriers and related activities sector.

Effective Leadership Development in an Evolving Climate

In today’s business climate, an organization’s vitality rests upon its leaders’ ability to evolve, rise to meet new stakeholder demands, and navigate shifting challenges and priorities. However, traditional career development plans have placed strong emphasis on an employee’s technical skills, overlooking the interpersonal and leadership skills that are necessary for success. As insurers respond to the exigencies of an evolving industry, which are further compounded by the maturing workforce, taking a fresh approach to leadership development is key. In a recent Insurance Journal article, Julie Dunn, assistant vice president and engagement director at The Jacobson Group, shared best practices for incorporating leadership and interpersonal skills into individuals’ career development plans. Recounting a Gartner study which found 45% of human resource professionals struggle with developing mid-level leaders and nearly as many (37%) with senior leaders, her piece, “Redefining Leadership Development,” explores areas for insurers to consider as they grow and engage their organization’s talent. Below are a few of her insights.Determine what leadership looks like in your organization.How organizations define leadership will vary, based on their corporate culture, values and mission. Consider the traits and skills that best align with your company’s current and future needs, such as empathy, a growth mindset, integrity and the ability to motivate others. Recognize that while some individuals may be more natural leaders, these behaviors can also be learned and fostered in others.Prioritize the human aspect. A recent study found 90% of human resources professionals believe focusing on the human aspect of leadership is essential for success. Beginning at the junior level, incorporate leadership and soft skills training into high potential employees’ professional development plans. Regardless of whether these programs are formally driven by HR or internally within your team, ensure you’re prioritizing leadership skills, not just technical abilities, as individuals advance in their careers. Take an individualized approach by identifying employees’ current strengths and areas for growth to create tailored development plans.Build leadership development strategies.As part of a comprehensive leadership development strategy, consider how you can provide individuals with a well-rounded view of your organization. Exposing high potential employees to experiences across divisions, through activities such as rotational programs or interdepartmental projects, allows them to gain broader insight into how departments interconnect. Coaching and mentorship relationships are also immensely valuable and permit employees the opportunity to connect with and learn from more senior individuals who can further support their growth.Soft and interpersonal skills are often the difference in good and great leaders. Consider leveraging formal training around emotional intelligence and unconscious bias within comprehensive development plans. This will strengthen individuals’ ability to effectively communicate, navigate conflict and manage relationships. Additionally, it is vital that senior management leads by example, exhibiting core leadership traits and encouraging them in others.Strategic leadership development is key to the long-term prosperity of any organization. Read the full article to learn more about redefining leadership and implementing formal leadership development plans to position your company for continued success.

Compass 15.3: Recruiting Redefined: Staying Competitive Amid Realignment

This quarter’s Compass feature article explores best practices for refining the candidate experience and attracting top talent in the evolving employment landscape. The newsletter also includes an overview of the industry's current labor market and recent executive-level job changes.

July 2022: Labor Market Pulse

While insurance unemployment continued to rise in June, the industry has added nearly 30,000 jobs since the start of the year. Within the larger finance and insurance category, job openings remain elevated amid a challenging recruiting climate. Additionally, pay continues to be relatively high for carriers although overall wage growth appears slightly slowed. We’re continuing to see a realignment within the industry as insurers establish more finite parameters around long-term work environments and professionals evaluate their personal and professional needs. We invite carriers to share their expectations for the next 12 months by participating in our Q3 2022 Insurance Labor Market Study. AT-A-GLANCE NUMBERS Unemployment for the insurance carriers and related activities sector increased to 2.8% in June.  The insurance carriers and related activities sector gained 7,200 jobs in June. At roughly 2.8 million jobs, industry employment increased by approximately 45,400 jobs compared to June 2021. The U.S. unemployment rate stayed at 3.6% in June and the overall economy added 372,000 jobs.   INDUSTRY HIGHLIGHTS On a year-to-year basis, May* insurance industry employment saw job increases in agents/brokers (up 3.8%), title (up 2.4%), and TPAs (up 1.9%). Meanwhile, job decreases were seen in reinsurance (down 2.6%), property and casualty (down 0.3%), and life/health (down 0.2%). Claims jobs saw no change. On a year-to-year basis, May* saw weekly wage increases in claims (up 9.4%), property and casualty (up 4.9%), title (up 4.4%), life/health (up 4.2%), agents/brokers (up 3%), and TPAs (up 2.6%). Meanwhile, wages decreased in reinsurance (down 1.2%).       BLS Reported Adjustments: Adjusted employment numbers for May show the industry saw a decrease of 1,900 jobs, compared to the previously reported decrease of 6,100 jobs. The BLS continues to revise numbers to be most accurate, which may contribute to inconsistencies, depending on when reports were pulled. *The BLS reports on wages and employment for the industry category are only available for two months prior. The source for the data represented in PULSE is the U.S. Bureau of Labor Statistics. Insurance data is derived from the insurance carriers and related activities sector.

Episode 7: Preparing for Board Service: Expert Insights

Serving on a corporate board can be a rewarding and valuable experience in many ways. The Jacobson Group’s co-CEO Greg Jacobson recently sat down with two industry leaders to discuss the qualities of successful directors and how insurance executives can most effectively prepare for a board seat. Donna Zarcone, who currently sits on the boards of Cigna, CDW, The Duchossois Group and Quinnox; and Dave Michelson, who sits on the board of FedNat and is president of DWM Consulting and advisor at a number of technology companies, share their vast experiences and advice for those pursuing board service.

Recruiter Report: Job Hopping

The market has shifted in the past few years and recruiters and hiring managers are evaluating how they approach recruitment in order to remain competitive. Our team regularly talks with insurance leaders from around the industry, granting us a unique perspective on pressing talent topics. In this edition of “Recruiter Report,” we’re discussing the stigma around turnover and its place in the current market, answering the question, Is job hopping a deal breaker? While staying with the same company throughout one’s entire career has become unrealistic, we see many hiring managers consider even a five-year tenure as short-lived. However, as the employment landscape evolves and the effects of COVID-19 continue to impact careers, professional movement is accelerating. It may be time to reevaluate your expectations around job hopping. Determine why a candidate switched roles.It’s not uncommon to see employment gaps or changes on candidates’ resumes given the tumultuous past two and a half years. They may have been laid off early in the pandemic. Others may have stepped back from their careers to focus on caring for children or parents. On the other hand, some individuals may have taken a new role in order to move up professionally or better meet shifting personal needs. If a candidate seems well qualified, don’t discount them solely on resume gaps or perceived job-hopping tendencies. They may be ready to fully embrace the right opportunity or step back into the workforce. Provide space for an individual to explain their journey before determining they are a risky hire.Explore whether their needs can be fulfilled. Although some job hopping and resume gaps are valid, there is also the potential these individuals are not fulfilled by long-term employment and may not be the right fit for your organization. Aim to gain a solid understanding of a candidate’s motivators and what they seek in a position. Ask if they enjoy changing roles and inquire about the value they’ve gained by moving from one company to another. Remain positive and encouraging when addressing their movement, asking questions in a non-judgmental way. For instance, are they wanting to be challenged more? Do they enjoy taking on new projects or working with new teams? Based on this conversation, you can gain more clarity around whether your organization has the right tools to keep them engaged long-term – such as rotational programs, project-based opportunities or well-defined upward mobility. Uncover and communicate the value of their perspective. While excessive turnover may be a red flag, consider the benefit of an individual who has a well-rounded professional background. In many cases, they can bring new ideas to your organization and share what has and hasn’t worked for similar companies. Additionally, if they were successful in a variety of roles, it’s likely they are agile and adaptable. Once you have an understanding of their past experience and reasons for changing jobs, you may determine an individual is actually a strong candidate for your open role. Keep in mind that others in the hiring process won’t make this conclusion based on the individual’s resume alone. If you’re a recruiter, work with the hiring manager to help them understand an individual’s viability, helping connect the dots in their resume. If you are the hiring manager for a role, be open-minded and proactively ask recruiters to share why they’ve recommended a candidate if it’s not initially apparent. Take the time to look beyond a resume and understand where there is risk and where there is opportunity. Leave the door open for boomerang employees.In addition to being more open-minded about turnover, consider past employees of your company who might be a fit for an open position. Unless they left on bad terms, there can be many benefits to these boomerang employees. First, there are fewer unknowns around their work style, culture fit and capabilities. Second, there is typically a much shorter onboarding and training process for returning employees, saving time and money. Additionally, during their time away from the organization, they’ve undoubtedly gained new insight and experience. Keep lines of communication open with high performing past employees, especially as some individuals begin to experience “the Great Regret.” Periodically connect to ask whether they are happy in their new role and if they’d ever consider coming back. Let these individuals know the door is always open, while avoiding making them feel uncomfortable or embarrassed about their decision to leave. Some turnover is inevitable and overall, today’s workforce is more comfortable making moves in order to advance professionally or find their desired level of flexibility. The pandemic has further redefined the norms around how the industry views resume gaps and turnover. Rather than discount an individual based on movement, take the time to better understand the larger picture and avoid missing out on the right hire.

Optimizing Your Contingent Labor Program in Today’s Economy

As the candidate’s market continues, insurers are adapting their talent plans to best meet the needs of their employees and customers. A low unemployment rate and high number of open insurance roles have given candidates the upper hand in terms of recruitment, with job seekers often receiving strong offers from multiple companies. As organizations recalibrate their total rewards packages to accommodate shifting employee expectations around flexibility, work environments and compensation, contingent labor programs are also being impacted. Here are a few areas to consider as you optimize your contingent labor plans for the current environment. Increasing Demand In our Q1 2022 Insurance Labor Market Study, conducted in partnership with Aon plc, nearly 20% of insurers shared they plan to increase their use of temporary employees in 2022. This is a record high for the study, and 6 percentage points higher than recorded in our pre-pandemic January 2020 study. The current demand is a result of multiple factors, including the resurgence of modernization efforts and other projects that were put on hold during the height of the pandemic, continued economic uncertainty, and attrition during “the Great Resignation.” Additionally, the vast majority of insurers plan to grow their full-time headcounts this year, primarily due to increases in business volume and areas that are currently understaffed, according to our Q1 2022 Insurance Labor Market Study. However, recruiting difficulty is at its highest in the study’s 13-year history, further fueling the already existing need for temporary workers. The U.S. Bureau of Labor Statistics’ May report found temporary job numbers increased by nearly 13% year-over-year, with the addition of 390,000 new positions. To meet impending needs, it’s important for organizations to plan early regarding needs and staffing partners, while moving quickly throughout the hiring process and fostering a positive candidate experience. Shifting Expectations Inflation and changing employee expectations are also impacting insurers’ contingent workforces. Across the industry, we’re seeing inflated rate requests and individuals receiving multiple offers for projects. Even for temporary positions, professionals are seeking out opportunities that meet their personal needs and preferred work styles, while also providing competitive pay. Make your assignments most desirable by offering enhanced flexibility when possible. Additionally, be clear and transparent regarding a project’s duration – often, individuals are looking for several months of work, and providing a definite schedule will help them feel more secure in accepting a position. Expanding Talent Pools Unemployment within the insurance industry remains low, at 2.3%, prompting many insurers to expand their talent pools. Depending on the need, this may include looking for individuals with experience in other departments or even outside the larger insurance industry. Skills such as customer service, attention to detail, project management and many more are easily transferable, opening organizations up to additional qualified individuals. At the same time, offering work from home opportunities, when possible, can remove geographic boundaries and provide an even wider array of potential talent. Enhanced Onboarding Processes Onboarding has become even more vital to an individual’s satisfaction with a role and a project’s overall success. Reevaluate your onboarding processes to ensure they are efficient and streamlined, while providing the necessary information and resources. Plan for IT needs and equipment ahead of time and ensure individuals are able to quickly get up and running with minimal technical difficulties – especially those who are working in a remote capacity. A strong understanding of individuals’ strengths and capabilities prior to a project enables you to tailor onboarding and training to supplement their existing knowledge base. This may include training around specific systems, tools and databases or more project- or organization-specific knowledge. In many cases, technical skills are more easily taught than innate skills and attributes. Keep this in mind and be strategic on the front end of an assignment to ensure individuals are working up to their full potential. As the insurance labor market evolves, temporary employees are vital for maintaining service levels and implementing larger scale projects. For more insight, view our posts on building a best-in-class contingent labor program and measuring your program’s effectiveness.

Jacobson Employee Spotlight – Q2 2022

We’re proud of our employees at The Jacobson Group and know they are what fuels our success. This quarter we shine our Employee Spotlight on three dedicated individuals. Get to know them below. View previous editions of our Employee Spotlight here. For monthly Employee Spotlights, follow our Facebook page. TONY CAÑAS Client Advisor, Insurtech, 4 years at Jacobson Hometown: San Jose, Costa Rica Alma Mater: Iowa State University – twice, for undergrad and my MBA Describe Your Role: As a client advisor, I help insurtechs with their talent needs at all levels. This includes both temporary and permanent direct hires. Favorite Movie: I’m a big nerd and love The Lord of the Rings movies. Jacobson in Three Words: Friendly, Best-in-Class, Caring When You Grew Up, You Hoped to Become: A computer scientist. However, it turns out if you can’t do math, programming is not for you. Random Fact About Yourself: I’m a black belt in Kyokushin Kaikan full-contact karate, which I practiced my whole childhood. Best Place You Have Ever Visited: Probably Portugal; every city we visited was gorgeous. One Thing You Are Grateful For: How much I’ve been able to travel (almost 80 countries) thanks to my girlfriend’s need for adventure and the fact that we both work in this wonderful industry. LAUREN SWOBODA Recruiter, 1 year 11 months at Jacobson Hometown: Kansas City, Missouri Alma Mater: University of Missouri Describe Your Role: I’m a recruiter on our temporary staffing team. I’m responsible for screening and outreaching to candidates, submitting candidates to clients, and coordinating and managing interviews and debriefs. Favorite Movie: It’s a tie between What about Bob? and Pretty Woman.  Favorite Thing About Working at Jacobson: I’ve always worked 100% remote with Jacobson and I’m a huge fan of the virtual events that our activities committee hosts. It gives me the opportunity to get to better know my teammates and have some fun outside of standard Zoom meetings. First Concert: Tom Petty Best Place You Have Ever Visited: The Greek Islands - specifically Santorini Random Fact About Yourself: Growing up, I was an All-American Soap Box Derby champion. Jacobson in Three Words: Fast-paced, Collaborative, Adaptable LAKRESHIA KINDRED Engagement Director, 11 months at Jacobson Hometown: Chicago, Illinois Alma Mater: University of Illinois Urbana-Champaign  Describe Your Role: As an engagement director, I am responsible for overseeing the strategy and implementation of executive-level searches. I work with my team to assess and present the highest qualified candidates in the marketplace. Jacobson in Three Words: Progressive, Rewarding, Connected Favorite Movie: Love Jones One Thing You Are Grateful For: Life and family When You Grew Up, You Hoped to Become: A physician Personal Mantra: My mission in life is not merely to survive, but to thrive; and to do so with some passion, some compassion, some humor, and some style. - Maya Angelou  Want to join our team? View our corporate careers page here.