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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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Insurance Industry Growth Leads to Competitive Labor Market

The results from our most recent Semi-Annual U.S. Insurance Labor Outlook Study are now available! The study, conducted by The Jacobson Group and Aon plc, uncovers revenue and hiring trends within the insurance industry. We are highlighting key data points from the Q3 2019 results, and you can download the full results summary, webinar and slide deck for additional insights and commentary. The latest survey shows positive staffing expectations with 62 percent of companies planning to increase staff, up one point from January’s iteration of the study. This is largely driven by the life and health verticals: 85 percent of these companies expect to expand their workforces. Fueling this growth is an increase in business volume, which 58 percent of total respondents listed as the primary reason-to-hire in the coming year. Likewise, revenue growth expectations remain high. Seventy-nine percent of surveyed organizations foresee revenue growth during the next 12 months, the same percentage as our January study. Life and health companies are particularly optimistic, with 92 percent reporting an expected increase, 22 percentage points higher than six months ago. Though the industry’s staffing and revenue outlook remains positive, insurers continue to face a challenging labor market compounded by mass retirements and nearly non-existent unemployment. According to the Bureau of Labor Statistics, the insurance industry’s unemployment rate landed at 1.6 percent in July, compared to 3.7 percent for the overall labor market. Additionally, the insurance carriers sector has added 116,100 new jobs since its employment low in April 2011. In fact, eight of 12 industry job categories have seen recruiting difficulty increase during the past year, further illustrating the industry’s war for talent persists. Insurance companies are experiencing the most difficulty in sourcing and attracting qualified technology, actuarial and executive talent. In addition, technology is the area most likely to see growth across the industry in the coming year.  As demand for insurance talent continues to outpace supply, recruiting difficulty will further intensify and insurers will need to seek out new recruiting and retention strategies. To stay competitive, insurance organizations may consider recruiting for skills rather than specific job experience, adjusting expectations around hiring to consider candidates’ perspectives, and implementing flexible work environments. In the past year, the industry grew 1.31 percent versus an anticipated rate of 0.60 percent last July. If the industry stays true to its plans for the next 12 months, employment will again increase. To access the latest growth projection, along with additional insights into the industry’s labor outlook for the next year, download the full results of the study.

Humanizing Accounting and Finance Modernization

As the insurance industry adopts new technologies and undergoes modernization efforts, accounting and finance departments have much to gain. Automation is allowing for reduced processing times, increased efficiency and higher service levels. More redundant tasks within bookkeeping and data entry are being taken over by artificial intelligence, and machine learning is identifying patterns and streamlining customer interactions. These advancements offer endless possibilities for the insurance industry. Data can be used to create customer profiles and personas to maximize relevance and provide personalized customer experiences. Tasks that once took weeks or months to complete can be accomplished in a matter of hours – or even instantaneously. However, we’re far from workplaces run solely by machines. In order for these initiatives to be most effective, a human element is vital. As automation replaces more monotonous tasks, employees’ time will be freed up for strategizing, advising and analyzing the insights provided by technology. In fact, the World Economic Forum expects more than 58 million net new jobs to be created as a result of AI and automation in just a few years.  As organizations undergo modernization efforts, employees often have uncertainties about the state of their current roles and responsibilities, including whether or not they’re part of an organization’s future plans. While it’s important to embrace the opportunities created by new technology, keeping employees engaged throughout modernization processes is a key component for success. A third of workers are anxious about what automation means for their jobs, making them less confident and innovative in their work. To help employees embrace new technology and processes, it is vital organizations take a human approach to modernization. Prioritize communication.In times of change, communication is crucial. Ease any employee concerns or fears by committing to open and transparent communication around modernization initiatives, timelines, and impact on the company, department and individual roles. Develop a communication plan that takes into account what you will share, as well as when and how you will communicate it. Perhaps this includes a department-wide meeting to introduce initial information, then on-going team or one-on-one meetings to address specific details and answer any questions. Encourage feedback and ask for employees to be open and honest with their concerns. Be empathetic.It can be easy to focus on the tactical side of rolling out a new process, implementing a new system or software, or collecting accurate data. No matter how hectic your schedule or how intricate the project details, remember to listen and be empathetic to your most important resource: your staff.  Employees are often comfortable with their roles and current processes and may be hesitant to embrace change. Listen to these concerns and ask about any fears. Often, they are the result of uncertainties and can be easily relieved or lessened. Put yourself in your employees’ shoes and let them know how any larger issues are being addressed. Make sure to focus on the benefits of new technology and how it will ultimately help them perform their job, or free them up for more strategic tasks. Train for future skills. Help further ease employees’ fears by being proactive about training for new programs, processes and skills. Many in the finance profession, especially those in more senior roles, were trained for traditional processes and methods. AI is a new horizon. Demonstrate your commitment to individuals’ ongoing success and accept they may be hesitant about their abilities to grasp new techniques. Incorporate training and new skills into their formal career development plans. You may also want to have a few individuals become experts in the space and offer peer-to-peer training, while serving as project advocates. Highlight the importance of human skills. In analytical fields, such as accounting and finance, soft or human skills are vital in communicating the importance of data and giving meaning to numbers. For instance, storytelling abilities often set the most effective and influential financial professionals apart. A strategic mindset, the ability to problem-solve and leadership skills are also attributes today’s machines are unable to replicate. Understand how technology and human insights can best complement each other. Encourage employees to hone skills that can lend insight and value to modernization efforts. In many cases, AI can remove human inconsistencies, biases and errors. However, it has its limitations and shouldn’t be used in isolation; the human mind is still important in accurate and thoughtful decision-making. Involve employees in the process. The more involved employees are, the more likely they will understand changes and support them. Often, subject matter experts are brought in to lead these initiatives, enabling full-time leaders to remain focused on their standard responsibilities. Employees often wonder what these special projects mean for them and their departments. Consider rethinking this process and asking employees if they would want to actively participate or help drive these projects. By involving your staff in a hands-on way, they’ll become more invested and committed to the process. Bring in subject matter experts to manage day-to-day workloads, or ask current staff to work closely with them on modernization projects. These consultants are experts in their fields and require little ramp-up time, enabling your department to continue running with no gaps in output or efficiency. There are many opportunities to leverage automation and artificial intelligence within the accounting and finance space. As technology advances, capabilities will only grow and the need for modernization will increase. Recognize the importance of technology in staying competitive and enhancing your team; yet remember human talent is a vital component for success. By keeping all lines of communication open, proactively sharing information and involving employees in the process, your team will be best positioned to embrace modernization while remaining engaged and effective.

Prioritizing Diversity and Inclusion in the Workplace

Published in the Insurance Journal The insurance industry is making strides in its diversity and inclusion efforts. By making it a priority, organizations can build innovative teams that will be successful in the future of work.

Preparing for Open Enrollment Now to Avoid Burnout Later

The 2020 healthcare open enrollment period is nearly here, slated to run from Nov. 1 to Dec. 15, 2019, with Medicare open enrollment from Oct. 15 to Dec. 7. As you know, with this seasonal spike in enrollment comes a much heavier workload. How can you best prepare for the influx to avoid staff burnout and increase productivity during this peak period? Focus on Top Priorities Open enrollment puts particular pressure on member and provider service representatives, enrollment analysts, and clerical resources. These essential functions will be tasked with a higher-than-normal workload this fall, resulting in competing priorities. A recent study found it takes as long as 23 minutes to return to an important project after an interruption, such as an email or phone call. With the urgency introduced by open enrollment, your staff does not have time to waste refocusing. Consider how to mitigate distractions by setting expectations around communication. Additionally, build a relationship with a staffing firm now to ensure you have enough resources when needs arise. Though you can’t eliminate interruptions entirely, this will allow you to spread out projects among qualified team members and lessen the impact of lost time. Insurance-focused staffing firms already have open enrollment on their radars and are building benches of relevant resources for you to leverage, allowing you to fill talent gaps and avoid overloading existing staff. Increase Productivity Through Effective Time Management Similarly, time management will become one of your employees’ most important skills during open enrollment. Harvard Business Review found executives have the ability to free up 20 percent of their employees’ time by introducing greater discipline in regard to time management. Giving your staff the tools to excel at managing their own projects will relieve you from some oversight pressure, make employees feel more confident and motivated, and help your organization keep up with demand. Start training your personnel on how to prioritize, set boundaries and communicate efficiently so they’re ready for heightened workloads in the coming months. When hiring new resources, consider staff with proven track records of effective time management so you can efficiently focus on the projects at hand. Build the Right Team with the Right Skills While functions essential to open enrollment may not require large teams year-round, this season has different demands. With peak periods comes temporary talent, and it’s important to determine the skills vital to each team before it’s time to hire those resources. Beyond technical requirements, optimize your team’s impact by hiring with human skills in mind. For member service representatives, you may prioritize empathy and sincerity; for internal-facing employees, perhaps you’re seeking strong verbal communication skills to ensure they proactively and clearly update their managers on project work. It’s best to create an enterprise-wide strategy regarding necessary non-technical attributes to promote team alignment and enable cross-departmental collaboration come open enrollment time. Save Money Through Strategic Talent Arrangements A major benefit of utilizing a temporary staffing provider is access to a larger candidate pool. Staffing firms maintain relationships with the talent you need, so they can provide consultants with the exact skills you’re looking for at a moment’s notice. These specialized resources are ready to hit the ground running, decreasing training and ramp-up time and increasing ROI. Being open to flexible work solutions, including work-from-home talent or consultants who may not work during typical office hours, will also widen the candidate pool, giving you the opportunity to work with the best talent for your situation and often allowing for cost savings. Implementing remote work opportunities and flexible hours opens your organization up to retired subject matter experts, consultants beyond your standard geographical reach and more. These arrangements maximize productivity and improve employee morale, both of which are vital during open enrollment. At Jacobson, we’ve built a robust pipeline of qualified candidates to help insurers meet their impending needs. From work-at-home resources to on-site talent, our database of insurance professionals encompasses all the functions impacted by open enrollment year after year. Is your organization prepared to tackle the 2020 open enrollment period?

What Does the Candidate-Driven Market Really Mean for Insurers?

In order to be successful in today's candidate-driven market, it is important for insurers to consider the candidate's perspective and motivations. By doing so, insurers can be strategic about offers and counter offers and remain competitive in a candidate's market.

Key Attributes of Tomorrow’s Insurance Leaders

The insurance talent landscape is shifting. Many senior-level employees are nearing retirement, Millennials and GenXers are moving into leadership positions, and members of Generation Z are securing their first jobs. Along with these demographic shifts, technology is redefining roles, making today’s desired leadership skills much different than those of even 10 years ago. Current insurance leaders are responsible for much more than driving financial success and managing operations. They have multifaceted roles to fill, and must be able to engage and inspire diverse employees, champion inclusivity, push through adversity and continually innovate. At the same time, they’re tasked with being technologically adept and understanding how to best balance their employees’ skillsets with automation. Deloitte’s 2019 Global Human Capital Trends survey found 80 percent of respondents highly prioritized leadership, yet only half that amount said their organizations were ready to meet today’s leadership requirements. Just 30 percent reported their organizations were effectively developing leaders to meet new challenges.    As insurance organizations undergo modernization efforts and shift their focus to the customer experience and anticipating consumer needs, human talent is more important than ever before. Professionals of all levels are differentiating themselves through skills and attributes that are difficult for machines to replicate, such as strategic thinking, delegation and negotiation skills, prioritization ability, and attention to detail. Here are a few of the key traits that are vital for this new type of leader: Emotional Intelligence: Today’s leaders are moving out of an isolated corner office and ingraining themselves within their organizations. They should be adept at listening to employee concerns and proactively seek out feedback. As automation becomes a larger part of business, emotional intelligence and soft skills such as empathy will set effective leaders apart. In fact, 90% of employees are more likely to stay with a company that is empathetic to their needs. Agility: Today’s business climate is constantly changing. Leaders must be prepared for anything and be able to navigate these shifts while continuing to motivate and inspire employees. This includes the ability to confidently make quick decisions and adjust priorities based on new information. Creativity: Without creativity, insurers will be left behind or lost among similar organizations. By seeking opportunities for improvement and innovation, the next wave of leadership will be able to keep their organizations relevant. These are just a few of the characteristics necessary for successful leadership. In our recent white paper, JoJo Harris, senior vice president of The Jacobson Group, dives into these attributes and several more, and outline the steps companies can take to identify and develop new leaders. View “Developing a New Type of Leader for the Evolving Industry” to learn more.

Q3 2019 U.S. Insurance Labor Market Study Results

The latest survey shows positive staffing expectations with 62 percent of companies planning to increase staff, up one point from January's iteration of the study. This is largely driven by the life and health verticals...

Redefining the Workplace: the Road to Modernization

Modernization projects driven by artificial intelligence are permeating all functions industry-wide. Only those organizations that effectively adapt to the new modern-infused workplace will experience continued success. Incorporating this new structure into corporate culture will also ensure no humans are left behind and help employees realize their potential in this stage of the revolution.

Top Talent Considerations for CAT Season

When disaster strikes, your organization's response is only as good as your workforce. Is your company prepared for the unpredictable?

Benefits of Using an Executive Search Firm

It’s no secret we’re currently experiencing a candidate-driven market. Overall U.S. unemployment is at a near-50-year low and within the insurance industry, there are more job openings than qualified individuals to fill them. As the war for talent continues and Baby Boomers retire, many insurers are challenged with recruiting new leaders in an increasingly competitive market. Often, these roles require unique skill sets and new types of leadership qualities, making it challenging to find professionals who are a match from both the talent and culture standpoints. Not surprisingly, our 2019 Q1 Insurance Labor Outlook Study uncovered that executive roles are tied with technology as the most difficult to fill. However, leaving long-term vacancies or bringing on the wrong talent can be detrimental, both financially and culturally, for organizations. Recently, we shared considerations for selecting a professional recruiting partner. In an industry facing widespread retirement at the leadership level, it’s also important to understand the benefits of retaining insurance executive recruiters and how these partnerships can help fill crucial positions. Here are a few reasons why to use an executive search firm.     Consultative Approach Executive search firms typically provide much more than just a slate of candidates. These firms can also serve as advisers, helping to define role requirements, delineate strategic objectives and provide an accurate view of the recruiting landscape. Search firms may also help your team create compelling position profiles that focus on necessary skills, while appealing to a broad range of qualified talent. Are there any barriers for filling a position? Any cultural issues or concerns that need to be explored? What transferable skills and roles should be considered? How does this position fit into larger succession planning efforts? The right firm will help you answer these questions and focus your efforts to be most effective. Access to an Extensive Talent Pool Reputable search firms have unique access to networks of industry professionals, which are often continually evolving and replenishing. As a result, the right search firm’s connections extend far past those of an internal HR department. This is especially true for niche firms, which have spent years building networks of referrals and interacting with professionals of all levels both in and out of the industry. Their exclusive access to the highest quality talent, coupled with a strong industry reputation, opens the door to reach candidates who may have otherwise been inaccessible. Presentation of Well-Vetted Candidates Part of the benefit of using an executive search firm is its ability to align with your needs and serve as a laser-focused extension of your organization. It’s important to bring an executive search firm in early on in the process so they can take a comprehensive look at the overall candidate pool. This enables the search team to develop a strategic plan that includes passive candidates. A true search partner can then evaluate these candidates based on business and technical expertise, cultural fit, soft skills, and other necessary criteria. The result is a slate of candidates who are well-suited to the position and ready for the hiring organization’s own internal review. Search teams may also assist with on-site interviews and evaluations, reference checks, and negotiation of compensation packages and start dates. Extensive Insurance Industry Knowledge Effective executive search firms, especially those that specialize in a niche industry like insurance, have a unique insider’s perspective of the marketplace. They frequently attend industry events, serve as talent thought leaders and are well-respected members of the insurance community. In addition to providing unparalleled insight, this often means they are well-known and respected throughout the industry, making it likely candidates will be willing to hear what they have to say about a position and company. Further, a knowledgeable consultant should be able to provide insight into the talent needs required to meet objectives, taking industry trends into account.  Experience with Similar Positions In addition to a deep and broad network, quality executive search firms bring extensive experience recruiting for specific positions. For instance, in the past five years, Jacobson’s executive search practice has conducted more than 50 insurance industry CEO searches. By retaining an executive search firm – especially one with a solid history and foundation – you are gaining a wealth of experience and lessons learned. While your team may only hire for a chief operating officer or chief technology officer once every five or ten years, successful search firms have vast experience uncovering talent for these roles and can provide insight on motivators, challenges and competitive offers, among other key topics.   When determining questions to ask when interviewing executive search firms, make sure you understand the full extent of the relationship, outside of simply bringing forth candidates. Additionally, your partnership shouldn’t end after an offer is accepted. The right firm will help ensure a smooth transition and provide guidance and support as the new leader assimilates into your organization. Hiring for executive-level positions is a rigorous process that can take a toll on internal teams. To find top talent, job postings, employee referrals and a company’s internal network may not be enough. In today’s highly competitive market, it’s vital organizations are able to reach passive talent, who may be happy in their roles and not actively looking. By partnering with the right executive search firm, your team will gain a thorough understanding of the marketplace, reach a deep and broad pool of talent, and be set up to hire high performing executives who can lead your organization into a successful future.  

Compass 12.3: What Does the Candidate-Driven Market Really Mean for Insurers?

This issue's feature article discusses the importance of considering the candidate's perspective and motivations. Jacobson discusses how insurers can remain competitive in a candidate's market including how to be strategic about offers and counter offers.

Health Insurers Must Get Creative with Benefits to Fill Critical Vacancies

Published in Healthcare Finance: The healthcare labor market is experiencing a staffing shortage due to competition, an aging workforce and an outdated industry image. By offering creative benefits like flexible work environments, student loan reimbursement and professional development opportunities, health insurers can better appeal to talent and fill these positions.