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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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Recruiter Report: Gauging Candidate Sincerity

The recruiting landscape continues to transform and candidates’ attitudes and motivations are evolving along with it. In October, we hit an unprecedented 0.8% unemployment rate within the insurance industry. Recruiting has become even more difficult as the war for talent rages on. However, many hiring managers are now experiencing a new challenge: understanding how serious candidates are about accepting a new position. It’s not uncommon for candidates to go through the interview process to “see what’s out there,” or make it to the point of an offer only to be swayed by a counteroffer from their current employer. Recruiters and hiring managers must adjust their interview styles to better understand how motivated professionals are to make a move – especially if they aren’t actively looking. In this edition of Recruiter Report, we address the question, How can you gauge a candidate’s sincerity throughout the interview process? Ask the right questions.  Understanding why candidates are exploring a new role and their willingness to leave their current employer is key. Here are a few questions that can provide insight into this area: How recently have you looked for other opportunities? They may truly be open to a move, or they may be professional candidates who interview periodically with no true intention of changing roles. How long have you been with your current employer? If they’ve been there 15 years, there may be a lower likelihood of them leaving without a large incentive. Conversely, if they’ve been with their employer under a year, it could be a potential red flag. What is missing in your current position that you are talking with me? They may just be curious about the opportunity, or perhaps they are looking for something their current employer can’t provide such as full-time work from home or upward mobility. What is still piquing your interest? This is a great question for the second interview, helping you understand why they are moving forward with the interview process and how motivated they are to accept an offer if it comes to that point. There are always exceptions, but if responses to these questions make you hesitant, dig deeper to gain a better understanding of a candidate’s situation. Perhaps they joined a company during the pandemic and were told they could remain flexible, but are now being asked to return to the office full-time, causing them to seek a new role sooner than they planned. Or perhaps they have already asked for development or advancement opportunities and have been turned down. Take on the role of a friend or consultant.  It’s important to understand what candidates are looking for and if they can achieve it with their current employer. If they feel like they’re deserving of a promotion, have they approached the issue with their current manger? Do they want more money, which could be easily provided in a counteroffer? Have their responsibilities shifted, causing them to be unhappy in their position? It may seem counterintuitive, but many grievances can be easily fixed by their current company. Encourage candidates to have these conversations with their current managers now, rather than getting to the point of an offer and being swayed by a potential counteroffer. You may lose a candidate in the short-term, but it will save you time and lead to a better outcome in the long-term. Make a strong offer.  If you’re prepared to present an offer, make sure it is competitive. Never come in at the low end of a candidate’s salary range. Outside of monetary compensation, ensure you understand anything else that may be a determining factor in a candidate’s decision. If it’s flexibility, PTO, development opportunities or other elements, outline these areas when presenting the offer. Include as much as you can within your total rewards package, remembering that even after a candidate accepts a position, the recruiting process isn’t over. It’s a tight market; without a strong offer, you may still risk losing talent to a counteroffer from their current employer or be vulnerable to losing them to competitors.  Adjusting recruiting strategies and creating strong offers is essential to remaining relevant in today’s market. Many hiring managers are concerned with internal equity; however, if your current employees aren’t being compensated at market value, you should be reevaluating their compensation and total rewards packages, as well. Otherwise, you risk losing your current talent to competitors who can better meet their needs.  While all situations are unique, taking the time to dig deeper into motivators will ultimately result in better long-term hires. Ask the right questions, understand intentions and make strong offers that are tailored to those needs. For more insight on current recruiting issues and trends, read past editions of Recruiter Report here. 

Leadership in the Virtual Environment: New Podcast

Insurance leaders are continuing to evolve their styles and strategies to accommodate shifting business and employee needs. While this may look different depending on individual teams, departments and organizations, the need for engaged and productive employees is universal. In a recent episode of The Insurance Talent Podcast, Greg Jacobson, co-CEO of The Jacobson Group, sat down with three industry leaders to discuss how they are effectively adapting to today’s business environment. Stan Galanksi, founder of G58 Capital, board chair of ProSight Specialty, and board member of Aviva’s Canadian business; Maroun Mourad, president of global underwriting at Verisk; and Gerardo Monroy, senior vice president of Aflac U.S. Innovation Strategy and Execution, shared their insights on how leaders can successfully move forward in the virtual environment. Here are a few highlights from these three conversations: Remote work is here to stay. The unanimous outlook for long-term remote work is that it’s not going anywhere. “I don’t think there’s any question about that,” said Galanski. “It’s on the mind of every executive team and every board of directors in the insurance industry.” Our guests expect hybrid environments to become the long-term norm moving forward. “In the new world, I do expect that we would have a hybrid environment, where folks work out of the office half the time or a third of the time and then for the rest of the time come in to do the important human-to-human connection work, especially around innovation, people management and leadership,” shared Mourad. Monroy offered a similar sentiment, “I would venture to say over half of organizations will work remotely going forward. That’s the future. I predict that people will move into a hybrid model where there are some associates who work 100% from home, …a handful who are 100% back in the office and the bulk will be hybrid, meaning they are in the office some days and at home other days.” It was also noted how quickly the industry was able to pivot to a fully remote environment nearly overnight. “I’m optimistic. There are certainly benefits from the lessons learned over the past couple of years. If someone had told us in March 2019 that come March 2020 we’re going to go remote 100% of the time, it would have taken us 12 months to figure it out,” said Mourad, regarding the industry as a whole. “…We somehow managed.” Productivity measures may need to adapt. In the discussions, Jacobson brought up that some executives fear a loss of productivity in a remote environment. There was an initial spike in productivity at the onset of the pandemic; however, there’s potential for it to wane in the long-term. “We haven’t seen any signs of this slowing down,” said Mourad. He continued, “There is a concern that people will develop fatigue in the long-term – we’re not machines after all, thankfully – and that innovation and productivity will take a hit. People could get burned out, which is not good from a humane level or a health level, as well as from a productivity perspective…It’s a balancing act.” “The questions is, are you as productive in the remote environment and is the traditional way of judging the number of hours one puts into a job even relevant anymore?” posed Galanski. He emphasized the need for a results- and performance-oriented scorecard, as it will be a challenge to measure productivity in the remote environment. “If you say, ‘we’re a results-driven organization,’ and you live that, it’s a lot easier to support a remote work environment because the numbers tell the story if you build a management information [infrastructure] that truly captures the value-add created.” Connections are vital. Even in hybrid and remote work environments, there’s a critical component of connecting face-to-face when necessary. “If you completely take out the human-to-human interaction in the insurance world, I think we’ll be lacking in many areas,” said Mourad, noting the areas primarily impacted will be innovation, retention and the establishment of trust. He emphasized the importance of flexibility and meeting business needs, while also accommodating the comfort level of employees and customers. Monroy shared insight into how he’s tailored his management style to the virtual world. “I have been most effective when I’ve been able to have a lot of interaction with my teams: walking around, meeting with people in their cubicles, at their desks and in their offices. That is something I personally miss, and we have been able to adjust to not having everyone in the office. You have to adapt. At the beginning it was tougher, but we have been at this for a year and a half and we’re getting better and better,” he said. Monroy uses a variety of communication methods to build connections with his teams and the larger organization, frequently sharing how the company is doing, recognizing milestones and accomplishments, and welcoming new team members. He also feels periodic face-to-face events can go far in building strong working relationships. Commenting on a recent in-person session, he shared, “The quality of the conversation, the depth of how we engage with one another was just fantastic. And it carried forward.” In addition to strengthening internal relationships, it’s also important to continue building connections with customers and partners. Referencing the property and casualty space, Galanski stated it’s common for the best ideas to come from places other than the boardroom. “They come from the customers and they come from listening and engaging with the buyers,” he said. One thing that has suffered is the ability to spend time with those customers in face-to-face environments that foster innovation, yet these interactions are critical. This is “when you get to ask the really relevant questions: What’s keeping you up at night? What is giving you a headache? What are the biggest problems you face in your business? Those are the kinds of discussions that I think really lead to creativity and innovation in our industry.” Listen to the podcast for the full conversations and more insights on what these leaders are seeing in their organizations and the greater industry. To receive new episodes of The Insurance Talent Podcast as they become available, follow or subscribe on Apple Podcasts, Google Podcasts, Spotify or Stitcher.

November 2021: Labor Market Pulse

Unemployment for the insurance industry continues to drop, reaching a record low in October. At 0.8% unemployment, this is the industry’s lowest unemployment rate in the BLS’s 20-year recorded history and only the second time it has dropped below 1%. However, employment for insurance carriers and related activities continues to decrease, with a loss of roughly 17,000 jobs since the beginning of 2021. This could be due to a number of factors, including continued reshuffling and realignment, as well as new hires potentially not keeping pace with retirements. It’s likely we’ll continue to see shifts in the industry’s labor market as both employees and employers adjust to the changing landscape. Proactively retaining employees and building a strong bench of talent at all organizational levels remain vital as we close out 2021. AT-A-GLANCE NUMBERS Unemployment for the insurance carriers and related activities sector decreased to 0.8% in October.  The insurance carriers and related activities sector lost 900 jobs in October. At roughly 2.9 million jobs, industry employment decreased by approximately 11,100 jobs compared to October 2020. The U.S. unemployment rate decreased to 4.6% in October and the overall economy added 531,000 jobs.   INDUSTRY HIGHLIGHTS On a year-to-year basis, September* insurance industry employment saw job increases in title (up 10%), and agents/brokers (up 1.9%). Meanwhile, job decreases were seen for property and casualty (down 3%), reinsurance (down 1.1%), claims (down 1%) and life/health (down 0.6%). TPAs did not change. On a year-to-year basis, September* saw weekly wage increases in reinsurance (up 3.8%), TPAs (up 3%), life/health (up 1.1%), claims (up 0.9%) and agents/brokers (up 0.8%). Meanwhile, wage decreases were seen for title (down 3.6%) and property and casualty (down 0.9%).      BLS Reported Adjustments: Adjusted employment numbers for September show the industry saw a decrease of 2,500 jobs, compared to the previously reported decrease of 800 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.

Developing Leaders for Tomorrow’s Actuarial Teams

One of the pressing topics within the actuarial community is how to grow and develop good actuaries into great managers. The actuarial profession is built upon solid technical skills and ongoing development. An analytical mindset and the ability to comprehend complex data sets and numbers create a firm foundation for any young actuary. However, as individuals step into management roles, they must augment this knowledge with leadership skills to be truly successful. Actuaries continue to increase in demand, as organizations recognize the value of their core skills outside of traditional areas such as pricing and modeling. As a result, it’s becoming much more common for actuaries to need to lead larger teams, and even teams that expand outside of the actuarial space. Effectively conveying complex concepts and inspiring excellence from both actuaries and non-actuaries is essential for these individuals.  In addition to the expansion of actuarial roles and responsibilities, there’s a continued mid-level actuarial talent gap. Current leaders must focus on growing and retaining these mid-career individuals by providing development opportunities and setting them up for success within the managerial ranks. As the role of the actuary shifts, a variety of skill sets and attributes are necessary to be most effective. In our experience, there are a few areas that can take technically skilled actuaries to the next level in their careers, while driving their organizations toward business goals. Areas of FocusThe role of the actuary is expanding and skills such as being able to tell a story around data, influence outcomes and lead effective teams are becoming more important than ever. Depending on the situation and team, a variety of soft skills can help launch actuaries into the realm of great leadership. Here are a few that are in high demand and can greatly impact an actuary’s career trajectory. AgilityBeing able to adapt and redirect a team’s focus is essential in today’s working environment. Artificial intelligence and technological advancements are changing how actuaries work and expanding their capabilities. Reskilling and upskilling have also become common for actuaries to remain relevant and knowledgeable, while avoiding skills gaps. In the evolving environment, the ability to quickly learn new programs, integrate newly available information and even adjust project scope are vital. Ability to Think Big PictureEspecially within project-focused teams, it can be easy to operate with a narrow, tactical focus. However, in addition to solving immediate challenges at hand, true leaders consider longer term impacts and anticipate potential roadblocks. It’s important for actuarial leaders to consider all stakeholders, as well as how those stakeholders will be impacted and their abilities to influence outcomes. Communication The days of the back-office actuary are over. Today’s actuarial leaders must effectively communicate with a variety of audiences, from organizational leadership to their own employees and peers. Well-honed presentation skills and the ability to facilitate meetings and conversations in person, remotely and in hybrid environments are crucial. Additionally, effective actuarial leaders must be able to break down data and share it in a way that is digestible and enables those outside of the actuarial community to understand its importance and impact.EmpathyIn the pandemic’s wake, employees’ expectations around empathy are shifting. Rather than focusing on set rules and processes, leaders across all insurance functions must be in tune with employee needs. The ability to listen to employees, accommodate their unique situations and continue to meet business goals, is becoming a mark of a great leader and essential to retention efforts.  Effective DevelopmentAs a current actuarial leader, ensure individuals on your team are given opportunities to flex their interpersonal skills while continuing to build technical competencies. Allow team members to run meetings with varied audiences, and encourage them to step up and participate in high-visibility projects. Early on in actuaries’ careers, even before they are on the management track, include soft skills in their career development plans in parallel with technical expertise. Provide exposure to other areas of the organization. Learning how other departments operate will help create a more comprehensive understanding of the business. This helps provide insight into stakeholder objectives and builds awareness of other departments and their goals. This may also include cross-training and reskilling opportunities, as business needs expand and evolve.Offer management training. Create career development plans that include training for management and leadership skills. Individuals are seeking support as they move to the next level in their careers and clear professional paths play a large role in employee retention. Ensure your future leaders are set up for success and have the training and skills necessary to thrive. Allow people to fail fast. Give employees the opportunity to step out of their comfort zones and take on stretch projects and other challenges. In the actuarial space, there has always been an emphasis on being correct; however, this can be a hindrance as individuals grow into leaders. Encourage stepping into unfamiliar territory and increase their comfort levels around making and learning from mistakes. Demonstrate you have confidence in your team and their leadership potential, and that you’ll continue to support them as they grow. Prioritize leadership development. Often, pressing projects and initiatives can cause development and training opportunities to be pushed aside or neglected. Ensure you’re prioritizing your next generation of actuarial leaders and providing them with the skills and knowledge to effectively lead teams and move to the next phases of their careers. A strong leadership pipeline should be a department-wide priority.As the role of the actuary transforms and continues to grow in scope and demand, strive to create a sustainable bench of future leaders. Emphasize soft skills in addition to technical skills, support growth and development in all areas, and embrace opportunities to provide learning experiences and unfamiliar challenges. By prioritizing leadership development, the industry will be well-positioned to take on future needs with capable and effective leaders at the helm. 

Health Highlights: Q4 2021

Health insurers are facing a turbulent labor market with complexities caused by vaccine mandates and government regulations, a tightening employment landscape and the implications of “the Great Reshuffle.” Our team talks with health insurance leaders on a regular basis, keeping a pulse on what is impacting the talent marketplace. Below are the pressing topics and trends we’ve been discussing as the industry continues to adapt to the pandemic’s ongoing effects. Vaccine MandatesCompliance with vaccine mandates is a high priority for health insurers. There’s little more than a month before the Dec. 8 deadline for government contractors to be fully vaccinated, a requirement that will directly impact plans working with Medicare and Medicaid. At the same time, many plans attached to health systems that do not participate in Medicare and Medicaid programs are preparing for self-imposed mandates. In some cases, these mandates also apply to remote workers, causing an already meager talent pool to contract even further. Health insurance leaders must think through what these changes could mean for their staffing plans and prepare for potential needs. Develop contingency plans and focus on how your talent strategies for full-time employees, as well as interim talent and contractors, may need to be revised to maintain business continuity and avoid gaps in service levels. Additionally, begin adjusting your hiring practices to include proof of vaccine, without sacrificing quality of talent. Tight Job MarketWhile vaccine mandates may exacerbate staffing challenges for many health plans, the current state of the insurance job market should not be overlooked. According to the Bureau of Labor Statistics, the unemployment rate for insurance carriers and related activities dropped to 1.9% in September – its lowest since the pandemic began in March 2020. While many jobs are available, there are not enough qualified individuals to fill them. In fact, nearly 75% of life/health insurers are planning to increase their staff in the next 12 months, with 73% attributing this growth to areas that are currently understaffed, according to our Q3 2021 Insurance Labor Market Study. We’re noticing organizations developing a false sense of security around the availability of talent. Health insurance leaders must acknowledge the tight market and build contingency plans that account for reshuffling, increased workloads and loss of employees due to vaccine mandates. Rethinking strategies around retention and employee engagement is also crucial, especially as higher-skilled positions, such as actuaries and medical directors, experience significant shortages. Those plans going through or anticipating mergers and acquisitions must also have a clear understanding of the impact on talent. While there may be redundancies in roles, it’s likely workloads will remain the same and employees will need to be not only retained, but reengaged. Continued Modernization ProjectsModernization projects are moving forward as customer experience, telehealth and other technological advancements continue to be emphasized. Amid employee reshuffling and organizational realignment, many health insurers are in need of experienced contractors to complete projects when backfilling roles isn’t necessary. Some of these projects began prior to the pandemic and have withstood hiring freezes, individuals exiting the organization or being promoted out of roles, department restructuring, and even company acquisitions. Now, as these projects are moving toward completion, organizations may not want to replace full-time team members, but do need to effectively push projects across the finish line. Bringing in skilled and specialized contractors is making it possible to be flexible with talent and bring longer-term projects to fruition. Need for Succession Planning at all LevelsStrategic and intentional talent strategies are vital for tackling forthcoming complexities. Developing employees and retaining high performers at all levels must be a priority. Health insurers can protect themselves against gaps by building a strong bench in all areas, especially those positions that traditionally have higher turnover, such as front-line workers. Consider how you can grow your customer service and claims roles and create longer-term development plans to keep talent within your organization. Additionally, extend succession planning to include directors and even some middle management roles, rather than focusing solely on executive leadership. Thoughtful contingency and succession plans will enable you to respond proactively to the ongoing implications of COVID-19. As health insurers work through the challenges of the next few months, anticipating potential talent needs is imperative. Consider areas where you may require skilled individuals to move forward with initiatives, such as quality audits and modernization projects, while also accounting for talent that may exit the industry or take on new opportunities. Focus on retaining your employees, preparing a strong interim talent strategy and strengthening your internal bench. The health insurance landscape will continue to evolve; having the flexibility to adjust along with these changes will set successful organizations apart. View past Health Highlights here.

Measuring the Effectiveness of Your Contingent Labor Program

The use of contingent labor continues to increase, especially in today’s complex and continually changing business environment. Staffing Industry Analysts predicts staffing industry growth of 16% in 2021. Additionally, our recent Q3 2021 Insurance Labor Market Study found 96% of insurance carrier respondents plan to maintain or increase their use of interim employees in the next year – marking the study’s all-time high. Understanding how to measure your contingent labor program’s effectiveness is essential, no matter how far along you are in your program’s maturity. Define what success means to your organization and how your contingent workforce can play into the larger picture and advance strategic objectives. Once you’ve identified what you’re aiming to achieve, be diligent in prioritizing your goals based on what will make the greatest impact. It can be easy to try to improve in all areas, but we’ve found focusing on five to 10 metrics is ideal. This provides enough insight to understand larger trends, while enabling you to funnel your energy into what matters most. There are numerous key performance indicators that can provide valuable insights. Below are a few areas you may choose to measure, along with the more specific KPIs that can help you track progress within those areas. KPIs Related to Cost and Savings How is your program affecting your bottom line? Ability to reach and maintain a competitive candidate pay rate Accuracy of spend forecasts Effectiveness of program tools Conversion fees and overtime costs Talent acquisition and turnover costs KPIs Related to Program Quality Are you receiving quality talent?  Effectiveness of program operations Quality of talent Overall performance of suppliers/vendors, including submission rates, time-to-fill, etc KPIs Related to Efficiency and Delivery Are involved parties being held accountable for their roles in the program’s success? Responsiveness of hiring managers Efficiency and quality of suppliers/vendors Ability to deliver positive employee experiences from onboarding to offboarding Extensions and terminations of contracts KPIs Related to Diversity, Equity and Inclusion Is your program demonstrating an ongoing commitment to DEI? Existence of supplier standards and commitment to DEI Creation of a diverse and inclusive environment Ability to maintain a diverse talent pool and compile a diverse slate of qualified candidates  KPIs Related to Risk Management Is risk being effectively mitigated? Frequency of worker misclassifications Existence of criminal behavior Ability to comply to employer standards Willingness to follow code of conduct While all of these areas hold value, consider which will have the greatest impact on your overall goals and ensure you’re reviewing progress at least quarterly. Along with the above metrics, you may also consider periodically surveying hiring managers and candidates to gain additional insight into your program’s performance. By taking the time to outline how a successful program will be defined and choosing the right KPIs to help measure progress, you’ll set your organization up for an impactful and productive program. For more on creating a best-in-class contingent labor program, view this recent blog post.