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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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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.

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.

April 2022: Labor Market Pulse

The insurance labor market remains incredibly tight, with a slight drop in unemployment and the loss of 1,400 jobs in March. Unemployment also fell for the overall U.S. economy, which has seen a 14-month streak of steady job growth. Job openings within the larger finance and insurance sector remain relatively high; yet, the industry continues to lack available talent to fill these open roles. Wages have increased year-over-year in all insurance categories and insurers are having to get creative with their talent acquisition and management strategies, including navigating counteroffers and building total rewards packages that complement individuals’ driving motivators. The fight to attract and retain talent persists amid the most challenging labor market in recent history. AT-A-GLANCE NUMBERS Unemployment for the insurance carriers and related activities sector slightly decreased to 1.5% in March.  The insurance carriers and related activities sector lost 1,400 jobs in March. At roughly 2.8 million jobs, industry employment increased by approximately 3,700 jobs compared to March 2021. The U.S. unemployment rate decreased to 3.6% in March and the overall economy added 431,000 jobs.   INDUSTRY HIGHLIGHTS On a year-to-year basis, February* insurance industry employment saw job increases in claims (up 9.4%), title (up 6.3%), agents/brokers (up 2.9%) and TPAs (up 0.8%). Meanwhile, job decreases were seen for reinsurance (down 4.7%), property and casualty (down 3.2%), and life/health (down 1.6%).  On a year-to-year basis, February* saw weekly wage increases in all categories: life/health (up 5.8%), claims (up 4.8%), TPAs (up 4.1%), title (up 3.7%), reinsurance (up 3.3%), agents/brokers (up 2%), and property and casualty (up 0.7%).      BLS Reported Adjustments: Adjusted employment numbers for February show the industry saw an increase of 3,300 jobs, compared to the previously reported increase of 6,300 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.

Recruiter Report: Navigating Counteroffers

We’re in one of the most challenging recruiting climates in decades, making it more important than ever for insurers to hone their hiring and retention strategies. In our conversations with hiring managers, as well as in our own experience as recruiters, we’re seeing an uptick in counteroffers from candidates’ current employers. Considering 72% of insurers are planning to hire this year, counteroffers will likely become even more prevalent. In this edition of Recruiter Report, we’re sharing insight on a pressing question: How can organizations most effectively handle counteroffers? Understand the current recruiting environment. The insurance labor market continues to tighten, with unemployment remaining low and job openings at an all-time high. Additionally, according to our Q1 2022 Insurance Labor Market Study, conducted in partnership with Aon plc, overall recruiting difficulty is at a peak, and positions within all insurance functions have become more challenging to fill in the past year. There is simply not enough qualified talent to meet insurers’ current needs and as a result, traditional processes must be reimagined to remain competitive. Prepare for increasing candidate expectations. In a past Recruiter Report, we shared how COVID-19 and the remote environment has impacted candidates’ expectations of an employer and role. Along with flexibility in hours and work location, salary expectations are continuing to rise. Candidates are in the driver’s seat and interviewing employers as much – if not more so – than employers are interviewing them. Anticipate that active candidates will receive two to three additional offers in today’s market and ensure you’re using the interview process to sell the role and your company. Focus on how you will meet their needs, while emphasizing long-term career progression and development opportunities. Be direct throughout the recruiting process. Ensure you’re continually asking candidates questions around what it will take for them to accept an offer and are clear on their expectations. It’s common for professionals to change their compensation requirements as they move through the recruiting process. Having frequent and direct conversations will help avoid surprises when you’re ready to extend an offer. Additionally, make sure you’re moving quickly and outlining next steps and anticipated timing to avoid losing interest and momentum. Expect a counteroffer. While counteroffers from candidates’ current employers may have been less frequent prior to the pandemic, they should be anticipated in the current environment. Build a hiring strategy that accounts for this new reality. If you’ve maintained transparent communication with candidates, you should have a clear idea of what they require to make a move. Leverage this information as you develop your offer and compensation package, striving to present your highest offer first. Consider the following questions: What can you offer that their current employer cannot? What might they be receiving as offers from other companies? A slight change in salary is easy to counter and often existing familiarity and comfort will weigh in the current employer’s favor. Don’t be afraid to go high and provide an offer the candidate can’t resist. Focus on retaining your current team. While you navigate counteroffers within the hiring process, it’s likely your current employees are simultaneously being recruited by your competitors. Acknowledge this and consider how you can secure their loyalty within your team and company. Ask how they feel about their current position and compensation. Understand whether they’re happy and what would cause them to entertain leaving your organization. With clear and open communication, it’s less likely you’ll be blindsided. At the same time, if you are considering making a counteroffer to keep an employee, consider the long-term impacts. According to research, 57% of employees who accept a counteroffer end up leaving their employer within two years. Counteroffers are a very real and prevalent part of today’s recruiting environment. By anticipating them within your recruiting strategy and ensuring you’re presenting strong initial offers, you’ll be best positioned to hire qualified talent in the competitive market. For insight on other pressing questions we’re discussing with clients, view past editions of Recruiter Report.

Q1 2022 Insurance Labor Study Results: Record High Percentage of Insurers Plan to Hire

Job openings reached an all-time high in January, retirements are accelerating, and new roles are continuing to emerge within the industry. "A candidate’s market” has never more accurately described the insurance industry’s recruiting climate. According to our recent Q1 2022 Insurance Labor Market Study, conducted in partnership with Aon plc, 72% of insurers are planning to increase staff this year — a record high percentage and a 16-point increase from July 2021's study. If you’re looking to make a career move within the industry, now is an opportune time to start exploring your options, refresh your resume and ensure you’re prepared if your dream job presents itself. As the industry experiences the most intense labor market many have ever seen, candidate expectations are setting the tone and driving the market. With a current industry unemployment rate of 1.8% and a record number of open finance and insurance jobs, talent is being pursued aggressively and savvy insurers are focused on how they can best meet shifting needs to increase fill rates and retention. According to our study, anticipated growth in business volume is the primary reason to add staff. Three-quarters of insurers seek experienced professionals, followed by 24% who aim to hire entry-level employees. Operations and claims are the functions most likely to hire entry-level individuals, at 45% and 33% respectively. Technology roles continue to be the most in-demand, followed by claims positions. Overall recruiting difficulty is now at its highest level in the study's 13-year history. Every functional area was reported more challenging to fill than one year ago. Not surprisingly, technology roles continue to be the most difficult, followed by actuarial and analytics, respectively. As recruiting becomes more challenging, the use of temporary staff is also increasing. The majority of insurers plan to maintain their current use of temporary employees and 19% plan to increase their temporary staff in 2022. This is the largest demand for temporary staffing in the study’s history. As you explore opportunities within the industry, consider what you need from an employer and the roles and organizations that best match those needs. As offices reopen, the majority of insurers plan to offer flexible work options. Eighty-nine percent plan to offer hybrid work and 45% will allow employees to work remotely full-time. Geography is becoming less of a limitation and enabling candidates to broaden their job searches without entertaining relocation. The Q1 2022 Insurance Labor Market Study took place from January 12 through January 30, 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.

Insurance Labor Study Results Reveal Record-Breaking Recruiting Difficulty

Throughout the past year, insurers have faced a tight – and often tumultuous – labor market. More seasoned professionals are continuing to retire, individuals of all levels are leaving the workforce amid “the Great Resignation” and we’re experiencing “the Great Reshuffle” of talent. Our recent Q1 2022 Insurance Labor Market Study indicates the recruiting climate has reached record difficulty and will likely become more challenging as we continue through 2022. The study, conducted in partnership with Aon plc, found 72% of insurance carriers (the highest percentage in the study’s 13-year history) plan to increase their headcounts this year. This is a 16-point increase over July 2021 and an 11-point increase over January 2020’s pre-pandemic expectations. The primary driver for adding staff in 2022 is anticipated increases in business volume; this is a shift from the July and January 2021 results, which attributed understaffed areas as the main reason for insurers to add employees. Not surprisingly, technology roles continue to see the most demand, followed by claims and analytics positions. Experienced staff is the industry’s greatest need across all functional areas, with three-quarters of respondents sharing they were planning to hire experienced employees. However, while insurers are primarily targeting experienced individuals, this mid-level gap demonstrates the value of growing junior-level employees and building a strong internal bench of talent. Although the majority of insurers aim to hire this year, overall recruiting difficulty has reached a peak. According to the Bureau of Labor Statistics, the number of job openings in finance and insurance is at an all-time high. This is further compounded by a low industry unemployment rate. Insurers are experiencing increased difficulty in not only finding, but also retaining the right talent. Technology roles remain the most difficult to fill, followed by actuarial and analytics positions. However, all functions increased in recruiting difficulty compared to July 2021, with the exception of executive positions. Demand for temporary staff has also grown amid these recruiting challenges and can help insurers fill immediate employment gaps, lessen the impact of attrition and maintain productivity. Nineteen percent of carriers plan to increase their use of temporary employees in 2022 – another high watermark for the study. As the industry continues to respond to shifting employee expectations, the vast majority of insurers intend to offer flexible working arrangements as offices reopen. Eighty-nine percent plan to offer a hybrid work model and 45% anticipate fully remote options. As long-term hybrid work becomes the norm and insurance leaders evaluate their talent strategies, flexibility in all areas is essential for long-term success. Listen to our recent podcast, featuring Greg Jacobson, co-CEO of The Jacobson Group, and Jeff Rieder, head of Ward Benchmarking, for more insight and commentary on the study’s findings. To download the full report or view the results webcast presentation, click here. The Semi-Annual U.S. Insurance Labor Market Study has collected revenue and hiring projections from carriers across all sectors of the industry since 2009. The next iteration of the survey will take place in July 2022. To be notified when it opens, follow this link.

Episode 6: Exploring the Current State of the Insurance Labor Market: Q1 2022

The results of The Jacobson Group and Aon plc’s Q1 2022 Insurance Labor Market Study indicate record-setting staffing expectations and recruiting difficulty. Jeff Rieder, head of Aon’s Ward Benchmarking, and Greg Jacobson, co-CEO of The Jacobson Group, discuss the study’s key findings and provide insight on what insurers can expect from a talent standpoint in 2022.

March 2022: Labor Market Pulse

According to the Bureau of Labor Statistics, January* saw the largest number of open finance and insurance jobs in at least two decades. Hires and quits are also relatively high, further illustrating the industry reshuffling that has occurred throughout the last several months. The industry unemployment rate remains low; and while employment for insurance carriers and related activities is still below pre-pandemic numbers, it has steadily grown since July 2021. This, paired with the high number of open jobs, indicates insurers are unable to fill their open positions. Additionally, in our recent Q1 2022 Insurance Labor Market Study, conducted in partnership with Aon plc, both demand for talent and overall recruiting difficulty were at the highest ever measured. Insurers are continuing to combat one of the most challenging and competitive labor markets many have ever experienced. AT-A-GLANCE NUMBERS Unemployment for the insurance carriers and related activities sector slightly increased to 1.8% in February.  The insurance carriers and related activities sector gained 6,300 jobs in February. At roughly 2.8 million jobs, industry employment increased by approximately 13,300 jobs compared to February 2021. The U.S. unemployment rate decreased to 3.8% in February and the overall economy added 678,000 jobs.   INDUSTRY HIGHLIGHTS On a year-to-year basis, January** insurance industry employment saw job increases in claims (up 13.7%), title (up 6.3%), agents/brokers (up 2.6%) and TPAs (up 0.4%). Meanwhile, job decreases were seen for reinsurance (down 5.8%), property and casualty (down 3.8%), and life/health (down 2.2%).  On a year-to-year basis, January** saw weekly wage increases in TPAs (up 3.1%), life/health (up 1.6%), title (up 1.3%), and claims (up 0.1%). Meanwhile, wage decreases were seen for reinsurance (down 1.4%), agents/brokers (down 0.2%), and property and casualty (down 0.1%).      BLS Reported Adjustments: Adjusted employment numbers for January show the industry saw an increase of 2,300 jobs, compared to the previously reported increase of 4,800 jobs. The BLS continues to revise numbers to be most accurate, which may contribute to inconsistencies, depending on when reports were pulled. *This is the most recently available information from the BLS JOLTS report, which began collecting data in December 2000. **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.

Jacobson Employee Spotlight – Q1 2022

As a people-focused organization, The Jacobson Group believes every employee’s contributions matter and impact the success of our organization, clients and candidates. In honor of Employee Appreciation Day, we’re shining the spotlight on three featured employees.  Learn about more of our Jacobson colleagues by viewing past editions of our Employee Spotlight here. For monthly Employee Spotlights, follow our Facebook page. PHOKHAM O'CONNOR Talent Delivery Manager, 11 years at Jacobson Hometown: Elgin, Illinois Alma Mater: University of Illinois Describe Your Role: As a talent delivery manager, I manage a team of recruiters who recruit candidates for our clients in need of temporary support. Personal Mantra: Do better, be better. Jacobson in Three Words: Professional, Energetic, Caring When You Grew Up, You Hoped to Become: An archaeologist First Concert: Eminem Best Place You Ever Visited: Bocas Del Toro, Panama One Thing You Are Grateful For: My adorable daughter GILLIAN GRYZ Research Team Lead, 5 years at Jacobson Hometown: Glenview, Illinois Alma Mater: University of Illinois at Urbana-Champaign Describe Your Role: I am the research team lead for executive search and I do my best to find the best insurance leaders for our roles. Favorite Dessert: My favorite dessert is a deep dish cookie with ice cream. Favorite Thing About Working at Jacobson: My favorite thing about working at Jacobson is my team – I am so grateful to work with all of them! First Concert: Britney Spears Best Place You Ever Visited: Lake Atitlán in Guatemala When You Grew Up, You Hoped to Become: A museum curator Jacobson in Three Words: Collaborative, Warm, Hard-working JESSE DEVER Recruiter, 8 months at Jacobson Hometown: Lake Zurich, Illinois Alma Mater: Miami University in Oxford, Ohio  Describe Your Role: I am a recruiter for Jacobson’s temporary staffing team. My job involves working with qualified candidates who are seeking new opportunities throughout the insurance industry. Jacobson in Three Words: Supportive, Dependable, Ambitious Favorite Movie: Braveheart How You Stay Motivated while Working From Home: Daily communication and collaboration with my team First Concert: Tom Petty and the Heartbreakers Fun Fact About Yourself: I was a competitive D1 college cheerleader. Want to join our team? View our corporate careers page here.

Q1 2022 Labor Market Study Results Infographic

The results of the first quarter iteration of the 2022 U.S. Insurance Labor Outlook Study are now available. The study, led by The Jacobson Group and Aon, plc, examines insurance industry labor and hiring trends. View highlighted stats in our infographic.

2022 Actuarial Talent Trends Guide

As we move through 2022, we are seeing a number of significant talent trends within the actuarial space. This challenging environment is compounded by shifting business priorities, the emergence of new roles and technologies, and increasing employee expectations. Download our guide to learn about the actuarial trends we expect will have the most impact in 2022.

Generation Z: Attracting and Retaining the Youngest Members of the Workforce

As the insurance industry continues to face a tight labor market, attracting and retaining members of Generation Z is essential for a successful talent strategy. Explore these best practices to ensure you're well-positioned to recruit and retain tomorrow's insurance leaders.