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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. 

Download the white paper to explore best practices for taking a human-focused approach as you lead through change.

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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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.

June 2022: Labor Market Pulse

Industry unemployment remains low, and while May saw a decrease in employment compared to April, insurance has gained more than 17,000 new jobs since the start of 2022. Movement persists with both quits and job openings remaining high. As comfort levels increase, in-person conferences and networking events are picking up pace across all industry sectors, enabling professionals to convene on a large scale. Insurers are also more firmly developing their plans and expectations for moving forward. We’re seeing organizations determine their longer-term work environments – whether it’s virtual, in person or hybrid. While acknowledging individual employees’ preferences and needs continues to be important, many organizations are more clearly defining these parameters. As a result, the industry’s reshuffling will likely become more of a realignment, with professionals seeking out the organizations that best meet their desired work styles. AT-A-GLANCE NUMBERS Unemployment for the insurance carriers and related activities sector increased to 2.3% in May.  The insurance carriers and related activities sector lost 6,100 jobs in May. At roughly 2.8 million jobs, industry employment increased by approximately 31,800 jobs compared to May 2021. The U.S. unemployment rate stayed at 3.6% in May and the overall economy added 390,000 jobs.   INDUSTRY HIGHLIGHTS On a year-to-year basis, April* insurance industry employment saw job increases in title (up 3.8%), agents/brokers (up 3.8%), claims (up 2%) and TPAs (up 1.6%). Meanwhile, job decreases were seen in reinsurance (down 2.9%), property and casualty (down 1.2%), and life/health (down 0.5%). On a year-to-year basis, April* saw weekly wage increases in claims (up 6.3%), property and casualty (up 4.5%), TPAs (up 4.3%), agents/brokers (up 4.1%), life/health (up 3.5%), and title (up 3.4%). Meanwhile, wages decreased in reinsurance (down 1.2%).       BLS Reported Adjustments: Adjusted employment numbers for April show the industry saw an increase of 21,000 jobs, compared to the previously reported increase of 19,700 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.

Remaining Professional in a Candidate’s Market

Insurance unemployment remains low, job openings are at an all-time high, and organizations have record-breaking hiring goals. Even if you’re not actively job searching, it’s likely recruiters are reaching out to share potential opportunities with increasing frequency. While we’re currently in a candidate’s market, how you handle these interactions – regardless of your intent to make a move – is a direct reflection of your personal brand. Here are a few ways to ensure you’re representing yourself in a positive light and further establishing your professional presence within the industry. Respond to outreach. Even in today’s market, with its increased turnover and abundant opportunities, building relationships and remaining professional is essential. When you’re approached with a position that doesn’t interest you or isn’t in line with your larger career plans, let the recruiter or hiring manager know upfront, rather than ignore their outreach. Consider it an opportunity to build connections within the industry and share the kind of future opportunities that may be better aligned with your long-term goals. You may also know individuals within your network who would be an ideal fit to recommend for the role. Put thought into your interviews. Be respectful of all involved parties’ time, schedules and efforts. While virtual meetings have become the norm for initial interviews, treat them with the same formality you would an in person meeting. This includes logging in early to troubleshoot potential technical difficulties, dressing professionally and being prepared with insightful questions. Silence email notifications or other distractions and avoid looking at your phone, remaining engaged throughout the conversation. Following the interview, send those you spoke with a follow up thank you email or LinkedIn message. Remain gracious, regardless of an interview’s outcome. If you are not offered a role, politely inquire about what you could have done differently and ask to keep in touch for future opportunities. Remain realistic. It’s no secret salaries are rising across all industries. If you’re not actively searching, it may be tempting to provide recruiters with an unrealistic salary range just to “see what happens.” However, keep in mind these salary expectations will likely stay attached to you when other opportunities arise within that company or recruiting firm, potentially taking you out of the running for your future dream role. Salary will always play a large role in total compensation; however, there’s more to career satisfaction than money. In fact, 20% of individuals who switched jobs during the pandemic are now experiencing regret according to a recent Harris poll. Be honest. Sincerity is key in today’s market. If you are actively or even passively searching, spend time determining what you are looking for in your next position and be transparent in communicating those expectations throughout the interview process. This could include a firm and realistic salary range, paid time off, professional development opportunities, defined career paths and more. Look at the full total rewards package a company is able to offer, as well as potential flexibility, team dynamics and overall culture. If you’re excited about an opportunity, but the compensation isn’t where you need it to be, share your concerns and strive to reach an offer that is desirable for both you and the employer. At the same time, if you determine a role is not the right fit, let the hiring manager know as soon as possible. Make a graceful exit. If you receive an offer you can’t refuse and choose to accept a new position, be thoughtful in how you discuss your decision with your current employer. Keep the conversation positive and if appropriate, let them know how the new role meets your career goals and objectives. Avoid listing grievances or complaints; if truly relevant, this should have been discussed far earlier in your tenure. Your goal should be to leave in a way that makes you re-hirable in the future. New positions could become available, or your manager could move departments or companies. Leave on a positive note and avoid burning bridges. Focus on the future. The insurance industry is small and currently experiencing increased movement. Many recruiters, hiring managers, past supervisors and colleagues will move to new companies or be promoted within their current organizations. It’s likely your paths will cross again whether it’s at conferences and industry networking events, as colleagues, or in a recruiting capacity. How will they remember your interactions? What might they say about you to other professionals? Ensure you’re thinking and acting through a long-term lens. The talent marketplace will continue to ebb and flow. Consider where you want to go in the greater scope of your career and how you can continually set yourself up for success. By focusing on having honest conversations and building connections, you can further establish your professional presence and positively impact your personal brand in the current candidate’s market.

Insight on Today’s Pressing Talent Questions

The talent landscape continues to shift and present new challenges for insurance leaders. From the abrupt adoption of remote work and a focus on contingency planning at the start of the pandemic to the current “Great Reshuffle” (and potentially “the Great Regret”), ongoing evolution and real-time learning have been key themes throughout the past two-plus years. Currently, the industry is in one of the most challenging recruiting climates we’ve ever experienced. As a result, our team has been frequently sharing our unique perspective on a variety of topics with clients and other insurance leaders, industry publications and association partners. We’ve compiled a few of the most common questions our thought leaders are answering in the below Q&A. We hope you find their insight valuable as you move forward with your talent plans and an evolving state of “normal.” Q: What are some of the main challenges of remote leadership and how can managers be most effective? A: The role of a leader is continuing to evolve to best accommodate changing employee needs in virtual and hybrid environments. As organizational culture and work environments are redefined, managers must be committed to connecting their team members with each other, as well as the larger organization. Creating a sense of connection and shared culture that transcends locations is vital and must be approached intentionally and proactively. At the same time, management teams are having more frequent conversations around behavioral health. Insurers are reevaluating the need for EAPs while equipping their leaders with the tools and training to best respond to employee concerns and challenges. Individuals adopted several new normals – both personally and professionally – during the pandemic and leaders are working to identify ways their teams can move forward most effectively while providing ongoing support.                                       - Judy Busby, Senior Vice President of Executive Search and Corporate Strategy Q: Are insurers feeling the impacts of “the Great Reshuffle”? How can they come out ahead? A: Most insurers are experiencing recruiting difficulty and increased movement among their teams. In response to this “Great Reshuffle” of talent, it’s important to rethink employee retention and professional development strategies. “Stay interviews” can help managers better gauge their employees’ current job satisfaction and gain alignment on what it will take to keep those individuals with the company. Encourage candid and transparent conversations around whether your employees’ needs are being met and what they desire in a long-term role. Ensuring individuals are being compensated fairly is also crucial to retention. What would they receive if they interviewed for a similar role at another company? What else can you offer that may encourage them to stay? Proactively evaluate how you can gain employees’ loyalty, rather than wait to make a counteroffer when it is already too late.                                                                                                    - David E. Coons, Senior Vice President Q: Given recent retirements and the ongoing movement of talent, how can insurers grow and develop individuals to move the company forward? A: While most managers recognize the importance of technical skills, one of the areas often overlooked in career development plans is leadership and interpersonal skills. Given today’s accelerating retirements and increase in voluntary turnover, it’s important to identify your high potential employees, pinpoint their strengths and areas for growth, and create customized plans to set both them and your organization up for success. This will look different depending on each organization. Even for companies that do not have formal HR-run leadership development programs, identifying the traits and interpersonal skills that are valued within your organization and providing training around them should be a priority. By integrating these skills into professional development plans – even at the more junior levels – insurance organizations will not only build future leaders, but also more effectively retain their high potential employees.                                                                - Julie Dunn, Assistant Vice President and Engagement Director Q: What are you seeing in terms of salary expectations in the current market?   A: To stay competitive, employers must review their compensation plans and ensure they’re at market value. As the demand for talent increases, so are candidates’ salary expectations; yet, many organizations are still calibrating to the current market. According to the BLS, insurance industry salaries have risen by nearly 8% since the start of the pandemic. Most active candidates are receiving two or three offers in today’s market, making it vital to present your best and highest offer to avoid missing out on top talent. While salary will always be important, other forms of compensation such as paid time off and performance bonuses can carry substantial weight in a comprehensive plan. Money alone will not ensure long-term job satisfaction, as evidenced by the emergence of “the Great Regret.” Continually seek feedback from employees about their current compensation and focus on how you can best meet their needs.                                                                                                      - Diana Shay, Assistant Vice President

2022 Underwriting Trends Guide

Learn which upcoming trends will drive the underwriting industry forward this year. Insurers are continuing to experience the most competitive labor market in recent history. From intensifying recruiting difficulty to shifting candidate expectations, the underwriting function must adapt to a changing industry.

Health Highlights: Q2 2022

The health insurance industry is facing a number of unknowns while continuing to evolve in the pandemic’s wake. Our team has frequent conversations with health insurance leaders across the country, keeping a pulse on how they are preparing for the unexpected, while accommodating the needs of both their employees and members. Below are a few key areas that are on our radars as we approach the second half of 2022. Increased Demand for Health Insurance TalentThe insurance industry as a whole is experiencing one of the most challenging labor markets in history. Sixty-five percent of life/health insurers plan to add staff this year, according to our recent Q1 2022 Insurance Labor Market Study, conducted in partnership with Aon, plc. The majority of those planning to grow their headcounts say it’s due to anticipated increases in business volume. However, while additional staff may be needed to meet these business needs, recruiting is at its most difficult level in the study’s 13-year history. Finance and insurance job openings reached a peak at the beginning of the year, while insurance unemployment remains low, reflecting a significant lack of available talent. Health insurers must evaluate how they’re attracting and retaining talent at all levels to remain successful and meet increasing demands. Need for Behavioral Health SupportProfessionals’ behavioral health has also been impacted as they cope with the effects of the pandemic. A recently published study by The Hartford found nearly three-quarters of employers believe employees’ mental health is impacting their company’s financial performance. The percentage of workers who report feeling depressed or anxious at least once per week has increased from 20% in 2020 to 34% in 2022. Additionally, there is a notable disconnect around the perceived stigma of mental health: 82% of employers feel their work environment inspires dialogue around mental health, compared to less than half of employees. At the same time, fewer companies are offering Employee Assistance Programs to support their staff. While this is an industrywide issue, health insurers have been at the forefront of this space, with many proactively evaluating their wellness plans and their effectiveness, as well as acknowledging behavioral health’s place in an inclusive work environment. New Areas of Focus for LeadershipAs a spotlight is placed on behavioral health, there’s also a need for health insurers to effectively train their leadership teams and managers to communicate available resources, while also demonstrating empathy that transcends across hybrid and virtual environments. Many managers have well-developed technical skills, but may feel uncomfortable engaging in transparent conversations about employees’ concerns, stressors and overall job satisfaction. Training on interpersonal skills and emotional intelligence will likely become more common as managers navigate shifting employee needs and behaviors. Impending End of Public Health EmergencyThe COVID-19-related public health emergency (PHE) was renewed until July 15, meaning July 31 is the earliest potential end date for continuous Medicaid enrollment. However, it could extend into October if a 60-day notice is not given by May 16. Although the PHE end date continues to shift, just 27 states have plans in place for prioritizing outstanding eligibility and renewals, according to a Kaiser Family Foundation survey. Medicaid/CHIP enrollment has increased by nearly 16 million individuals since the start of the pandemic – for many states it has been the largest enrollment period since the Affordable Care Act. Once the PHE expires, many of these individuals will lose their state-funded coverage and need to move to an exchange or private plan. Insurers that work with Medicare/Medicaid must be prepared to quickly staff call centers and proactively capture new memberships, while addressing inquiries and providing the best customer experience possible. Emphasis on Risk AdjustmentThere’s also a continued emphasis on risk adjustment as insurers work to optimize their models and account for the impacts of COVID-19. Roughly 40% of Americans delayed medical treatment during the summer of 2020, according to a U.S. Census Pulse Survey. Collection and interpretation of data will remain vital for risk adjustment, yet may not tell a patient’s full story. For instance, it’s estimated risk scores for Medicare Advantage beneficiaries were 9.5% higher in 2020 than for similar beneficiaries in traditional Medicare, resulting in an overpayment of roughly $12 billion. As plans work to achieve more accurate and holistic programs, it may be necessary to bring in additional data analytics experts to support and evolve contracting partnerships and renewals. New services and specific healthcare inclusions for the population and members you are serving (such as behavioral health services) could lead to more optimum coverage, reduce overall costs and result in the best possible care.As employee and member needs continue to evolve and health insurers position themselves for success in the aftermath of COVID-19, maintaining a sense of transparency and adaptability is essential. Being prepared for shifts in Medicare/Medicaid and focusing on the health and well-being of your team are key in effectively moving forward. For more Health Highlights, click here.

May 2022: Labor Market Pulse

April saw strong job growth in the insurance labor market with the addition of nearly 20,000 jobs, according to the Bureau of Labor Statistics. Unsurprisingly, the unemployment rate for insurance carriers and related activities continued its steady decline since February, dropping to just 1.4% in April. Unemployment held steady at 3.6% for the overall U.S. economy, hitting 15-months of steady job growth. With reports wage growth isn’t keeping pace with rising inflation, we’re continuing to see many clients rethink their compensation and overall retention strategies. For more on comprehensive retention strategies, view our latest white paper: Retaining Top Talent in Today’s Competitive Labor Market. AT-A-GLANCE NUMBERS Unemployment for the insurance carriers and related activities sector slightly decreased to 1.4% in April.  The insurance carriers and related activities sector added 19,700 jobs in April. At roughly 2.8 million jobs, industry employment increased by approximately 33,800 jobs compared to April 2021. The U.S. unemployment rate stayed at 3.6% in April and the overall economy added 428,000 jobs.   INDUSTRY HIGHLIGHTS On a year-to-year basis, March* insurance industry employment saw job increases in title (up 6.1%), claims (up 3.4%), agents/brokers (up 2.8%) and TPAs (up 0.8%). Meanwhile, job decreases were seen for reinsurance (down 3.6%), property and casualty (down 2.5%), and life/health (down 1.2%).  On a year-to-year basis, March* saw weekly wage increases in all categories: claims (up 8.7%), life/health (up 4.5%), TPAs (up 4.3%), title (up 3.7%), agents/brokers (up 2.8%), property and casualty (up 2.8%), and reinsurance (up 0.7%).      BLS Reported Adjustments: Adjusted employment numbers for March show the industry saw a decrease of 2,200 jobs, compared to the previously reported decrease of 1,400 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.

Traits and Behaviors of the Most Effective Directors

As insurance organizations continue to evolve in this ever-changing business climate, so does the role of its board of directors. Often selected with a strategic purpose in mind, each board member plays a distinct, essential role in effective governance.

Compass 15.2 Retaining Top Talent in Today’s Competitive Labor Market

This quarter’s Compass feature article explores comprehensive strategies for effectively retaining engaged and loyal teams in today's challenging environment. The newsletter also includes an overview of the industry's current labor market and recent executive-level job changes.

Boardroom View 4.1: Traits and Behaviors of the Most Effective Directors

As insurance organizations continue to evolve in this ever-changing business climate, so does the role of its board of directors. Often selected with a strategic purpose in mind, each board member plays a distinct, essential role in effective governance. This issue's feature article highlights several behaviors that help set the best directors apart.

Redefining Leadership Development

Published in Insurance Journal The role of a great leader continues to evolve, but while most insurers are focused on growing employees technical abilities, many are overlooking the importance of interpersonal and leadership skills in their career development plans. In this article for Insurance Journal, The Jacobson Group's Julie Dunn shares how leadership development is being redefined as new business demands and expectations are met with shifting challenges and priorities.

Attracting and Retaining Gen Z in Today’s Labor Market

For years, the insurance industry has explored how to best recruit and engage young professionals. Millennials have long been the focus of these conversations; yet, the oldest Millennials are now in their early 40s and stepping into more senior- and executive-level roles. Generation Z is the newest generation to enter the workforce and brings its own distinct characteristics, work styles and expectations. As the industry continues to age and retirements increase, attracting this young talent and growing them into future organizational leaders is essential. Our recent Q1 2022 Insurance Labor Market Study found nearly a quarter of carriers are planning to add entry-level staff and three-quarters are planning to add experienced staff this year. Effectively recruiting members of Generation Z and developing them into more experienced and senior-level professionals should be a central part of insurers’ talent strategies, especially in today’s competitive market. Our most recent issue of Compass, shared insights on Generation Z, as well as how insurers can best engage this unique generational cohort. Below are a few key areas of focus for developing a comprehensive talent strategy that resonates with these young professionals. While these are generalizations and may not be inclusive of all members of Generation Z, they are common characteristics that can help serve as a guide. Growth and Development Members of Generation Z are generally ambitious and driven, making it important to demonstrate your commitment to their career development and progression. Provide exposure into various areas of the business, be proactive in identifying their interests, and create individualized professional development plans to meet their goals, while highlighting how you’ll support them along the way. Innovation Gen Zers view flexibility, adaptability, creativity and empathy as the most important characteristics of a successful company. While insurance may not traditionally be thought of as an innovative industry, many insurers are launching new programs and initiatives to best meet evolving customer and employee demands. Emphasize recent modernization efforts and communicate how your organization is continuing to adapt to meet changing needs and involving employees in the process. Efficient Technology Gen Zers have always had technology at their fingertips and expect convenient and streamlined tools, especially in a largely virtual environment. Evaluate your current processes and programs to ensure all professionals are able to be as productive as possible. Additionally, make sure to leverage tools such as video conferencing and instant messaging to help members of Gen Z feel more connected to their colleagues, even if they have never met face-to-face. Flexibility At this point in the pandemic, employees across all generations seek flexibility in terms of where and how they work. However, while Gen Zers are comfortable working in a virtual environment and desire the ability to work autonomously, they also value in-person connections. Work with your young employees to understand each individual’s unique preferences, recognizing that distractions at home and feelings of isolation may weigh on their ability to be productive more than other generations. Diversity, Equity and Inclusion As the most diverse generation in the workforce, members of Generation Z expect to work with teams that span a variety of backgrounds, ethnicities, cultures and more. In fact, 69% of Gen Zers said they would be more likely to apply for a job that reflects a diverse workplace in its recruiting materials. Communicate your commitment to diversity at all levels of your organization, while ensuring your recruiting and employee development programs are inclusive and equitable. Mental Health Generation Z is more likely than any other generation to be open about mental health challenges, even reaching out to employers for support. Nearly half of Generation Z adults said their mental health has worsened during the pandemic and 46% believe the pandemic has made it more difficult to pursue career or professional goals. Organizations should make an effort to normalize these feelings and provide access to resources and tools for assistance. Engaging and growing young professionals is vital to the success of any organization. Read the full article to learn more about Generation Z and ways your organization can best resonate with this young talent and gain their long-term loyalty.