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Latest Insurance Talent Perspectives

Building and Maintaining a Strong Employer Brand

In today’s competitive labor market, a strong employer brand is a key differentiator in recruiting top talent, reducing costs, enhancing the candidate pool, and retaining high performers by instilling pride in their roles and company. 

View our latest white paper for tips to ensure your company represents itself as an employer of choice.

Q3 2024 Insurance Labor Market Study Results

The Jacobson Group and Aon conduct a Semi-Annual Insurance Labor Market Study to examine industry hiring and revenue trends and projections. The findings of our Q3 2024 iteration reflect a relatively stable labor market, with modest job growth.

Download the results to explore 2024’s staffing forecasts and hiring plans for the insurance industry.

Combatting the Finance and Accounting Talent Shortage

Faced with a shallowing pool of emerging talent and a workforce nearing retirement, finding qualified accounting and finance professionals has been an intensifying challenge for the industry. A comprehensive multi-prong approach is necessary to cultivate a workforce that can meet evolving demands and ensure operational continuity.

Read our blog post for insights on staying ahead of the growing finance and accounting talent crisis.

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Hiring for a Changing Market: Interview for Innovation

It is my pleasure to introduce a guest blogger for this latest post. Dave Coons is a senior vice president here at Jacobson, providing leadership to our professional recruiting, emerging talent, RPO and temporary and temp-to-hire staffing practices. His insights into interview strategies are worth a read. Enjoy… In today’s fast-paced, ever-changing business world, innovation and flexibility are key to success. Most business professionals have heard the mantra “innovate or die,” yet are unsure how to turn this idea into a reality within their own organizations. For the insurance industry, this continued quest for innovation is especially important given constantly evolving marketplace conditions, climate concerns, rapidly changing technology risks, an ever-shifting web of compliance demands, and continued globalization. At the risk of stating the obvious, the first, and arguably most important, step in creating a culture that fosters creative thought and adapts to change is to hire individuals who are innovative and adaptable. Yet, hiring for innovation can be challenging. Because innovation and flexibility often require out-of-the-box thinking and creativity, vetting these characteristics during the interview process is different than interviewing for traditional business skillsets. In fact, when searching for an innovative candidate, experience and skills are often not as important as that individual’s personality and creative thought process. While hiring managers may look for a specific number of years of relevant job experience when filling a traditional position, managers looking for creative individuals might instead focus on candidates who ask a lot of questions and seem able to make intuitive leaps during the interview process. What does Innovation Mean to You? Before you begin your search, make sure you understand what innovation means to your culture and organization. What does being innovative mean to the role in question? How does flexibility apply to the position? It is important that you have an understanding of what you want these traits to translate into within the job function and within the company as a whole. Are you looking for an individual who generates ideas and is a constant thought leader or are you looking for an employee that can take a creative idea from the drawing board through implementation? Depending on your response to these questions, you may want to rethink the skills and experience you are looking for in a candidate. How do I Find Innovative Talent? While you obviously want to make sure that a candidate’s skills are compatible with the job opening and that their values are a good fit with those of the organization, these are only a piece of the total picture. The search for innovative talent requires a focus on personal characteristics and reactions. In order to ascertain a candidate’s propensity for innovation, focus on asking open-ended questions that go beyond the standard interview stock. Ask the individual to share an experience or past event when they have had to adapt to a situation or when they have shown their creativity in dealing with a particular incident. Introduce behavioral interview guides to gauge their response. For example, provide them with specific scenarios and ask them to describe how they would react. Is their selected method of response in line with what you are looking to happen in that situation? Use follow-up questions to really understand a candidate’s personality and to get the information you are seeking. Simply asking individuals to “tell me more” can be a great way to get them to share how they may handle various aspects of the job. Make sure you don’t lead them to the answer; let them be open and honest with you when they respond. Have your candidate interview with multiple individuals from your team in order to get a variety of perspectives and impressions. Perhaps someone from your team sees something in the individual that everyone else overlooked. A team member who is currently working in a position similar to the one you are filling is more likely to recognize a key skill or trait than a manager who may not be as involved in the day-to-day aspects of that particular role. Managers may also want to utilize case study or writing exercises to ascertain a candidate’s innovative tendencies. Ask the individual to submit a brief write-up on something particularly innovative that they have completed while on the job or in their personal lives. Give them an organizational case study and have them put together an innovative solution. These exercises are particularly helpful when interviewing individuals who may not have an extensive work background or applicable job experience, but do have all the skills and competencies you are looking for. If your company is ready to embrace innovative thinking and new ideas, now is the time to add talented, creative individuals to your team. No matter what tactics you use in your quest for innovative talent, finding quality employees who are inventive and flexible is key to staying competitive in today’s market. What is your company currently doing to ensure you hire individuals who thrive on innovation?

Rebranding Insurance: Changing the Outdated View of the Industry

The insurance industry is way behind the times. There are no opportunities for me to advance my career. It’s a stale industry that fails to embrace change. We’ve heard it all before. The talent market image of the insurance industry is not a very positive one. Many individuals view insurance as an out-of-date, antiquated labor market that offers little room for growth. As such, recruiting talent, at all levels, is extremely challenging. As the industry continues to see low unemployment rates, a greying workforce and an increasing demand for talent, recruitment is only going to get more and more difficult. The key to combating this worsening skills gap is to find new talent to fill the industry’s in-demand positions. But finding interested talent for what is deemed a “less desirable” industry is not easy, and we, as a whole, are not doing enough to change the public’s perception of our field. But just how can we combat these inaccurate stereotypes? What can we do to make insurance more attractive? The key is rebranding. But individual insurance organizations cannot take on the project of disproving the current industry stereotypes by themselves. The sector as a whole needs to join together and collaboratively work toward promoting the many positive aspects of a career in insurance. We must focus on highlighting the attractive benefits that we, as an industry, offer to professionals. It may be surprising to learn that many of the key perks sought after by today’s talent, are cross-generational. From Millennials to Baby Boomers, employees are looking for workplace flexibility, respect, guidance and a work/life balance—all things offered with a career in insurance. In order to attract these professionals, we must start showcasing how our organizational cultures foster collaboration, promote and support mentoring, nurture innovation and demonstrate corporate responsibility. The industry also needs to position itself as tech-savvy and cutting-edge. Insurance organizations should promote any involvement with hot button trends such as analytics and big data. Organizations should stay on top of the latest tech trends and advances to ensure our employees have the technology needed to function at the highest level. We must embrace social media and all of its potential by being not only present, but engaged, on popular social media sites including LinkedIn, Twitter and Facebook. Members of the younger generation, as well as many of today’s more established professionals, utilize social networks for their career research and networking. It is only by updating and rebranding our image that the insurance industry can successfully combat the impending talent shortage. We must follow the lead taken by so many other business sectors, including logistics and healthcare, to position insurance as “modern,” “cool,” and a “great place to work.” The stakes are high lest we continue to lose ground to more proactive industries that have already dedicated themselves to rebuilding their image.

The PPACA’s Lingering Effects: Insurance Employment Growth

The first half of 2014 is looking strong for the insurance industry talent market. Employment is on the rise and the current unemployment rate has reverted to levels the industry has not seen since before the Great Recession. While continued economic recovery (albeit slow) has driven gains in throughout the insurance industries, the health insurance industry has seen the second greatest gains so far this year, following agencies/brokerages. Driving this momentum is the wave of hiring that has accompanied the implementation of the Patient Protection and Affordable Care Act (PPACA). While the new health insurance law officially took effect in March of 2010, many of its major provisions—including the health insurance exchanges—were phased in this past January. According to the BLS, in March 2014 alone, 1,300 positions were added to direct health and medical insurance carriers. This brings the total medical and health insurance job growth throughout the past year up to an estimated 19,300 jobs—the highest annual increase since June. For the years leading up to this major provisions rollout, health and medical insurance carriers have debated both the short-term and long-term effects of the law. It is clear, with the first PPACA-influenced enrollment period officially complete, that the short-term effect is a significant uptick in industry employment. In fact, we saw unemployment gains normally unheard of in the insurance industry thanks to the PPACA’s stimulating effect on the health insurance labor market. Despite these positive short-term results, there is still much speculation regarding the long-term impact PPACA will have on the health insurance industry and the broader economy. As mentioned in a previous post, the industry is expected to see continued, and likely accelerated, cost escalation as a result of the increased market interference. Of course, this means higher premiums for the industries customers: Corporate America. The upcoming implementation of the “employer mandate” in January, 2015 will add another layer of reporting complexity and potential costs to many employers. Taken together, these rising costs will inhibit future labor growth in the broader economy. Less than six months into the implementation of the law’s major provisions, many are anxious as we wait and see how the forced changes to the industry play out. What are your thoughts on how the PPACA will affect the health insurance industry in the long-run?

Retaining Emerging Talent: Top Strategies to Keep Millennials Engaged

You dedicated time to create a welcoming and enticing work environment. You have positioned your company as innovative and cutting-edge with social media and new technologies. You have embraced a fresh company culture that is appealing to young talent. You have worked hard to attract the younger generation into your organization. Now what? With 60 percent of Millennials expected to leave their employers within the first three years, what can organizations do to keep these future leaders engaged? Much like the recruitment methods for Millennials, the key lies within your company culture. In order to retain young professionals, you must live the brand that you have created to attract them. 1. Offer desirable perks and benefits. It may be surprising for many organizations to learn that most young professionals seek the same benefits and perks as other generations currently in the workforce. These include a quick climb up the corporate ladder, career development opportunities, high employee morale and a sense of purpose in their work. By implementing changes to increase retention amongst your youngest employees, you are also fostering an engaging work environment for every member of your organization. 2. Fast track high-performing employees. If you want to keep today’s young, talented individuals within your company, make sure you are placing your best and brightest on the road to success. Highlight and recognize high performers for their accomplishments and provide additional assignments and responsibilities to both challenge and empower them. These added opportunities will not only help prepare you’re A-players for advancement opportunities in the future but will also demonstrate that you recognize their accomplishments and are committed to helping them grow their own success. 3. Offer career development and training programs. If young professionals feel that they are unchallenged in their roles, they are more likely to begin looking for an alternative opportunity to develop and expand their skills. In order to combat this, consider ramping up your training and career development programs Millennials want to grow their knowledge and experience; provide lunch and learns, access to external training and job shadowing to keep them engaged. 4. Foster an inviting and inclusive culture. Don’t overlook the importance of employee morale. Relationships between employees and leadership are key to building engagement. Focus on promoting open and collaborative communication amongst employees, supervisors and even executive management. Encourage positivity and teamwork through group activities and social events. Provide you’re top talent with opportunities to network with executive management. These positive interactions will go a long way to increasing job satisfaction. 5. Engage in community service and volunteer activities. Consider a corporate citizenship program to create a sense of purpose and provide meaning to the work your employees do for the company. Participate in charitable programs and projects in your community. Employees that find their work to be fulfilling and meaningful are much more connected to their employer. The key to engaging and retaining the younger generation is to not only promote a welcoming and enticing company brand and culture, but to weave it into the very fabric of the organization and to ensure that every decision and action that is taken reflects your mission and values. It is that type of environment that will keep your Millennial employees – and others for that matter – feeling more passionate and committed to their work.

Recruiting Millennials: How to Bring Young Talent to Your Organization

The insurance industry is aging. According to the Bureau of Labor Statistics, nearly 50 percent of the industry workforce is older than 45 and only 26.67 percent of employees are under the age of 35. In order to prepare for the future and successfully build a bench of bright, young talent, insurers must focus on engaging and recruiting young professionals and recent college graduates, yet recruiting this emerging group of talented individuals is challenging. The Wall Street Journal ranked insurance 97th out of the 100 most desirable industries for college graduates. The insurance industry is seen as behind the times and offering little in terms of career development. Young professionals are looking for an industry that is fresh, exciting, edgy, modern and trendy—and insurance is falling behind. How can organizations differentiate themselves from this blighted and inaccurate view of the industry? Highlight what makes your organization desirable to the younger generation. Millennials want guidance, mentoring, a quick climb up the company ladder and a sense of purpose in their work. Showcase how your organization fulfills these workplace preferences. Foster a collaborative environment, promote mentorships, encourage new and innovative ideas and demonstrate social responsibility with volunteerism and community service projects. Remember to emphasize the perks and hot button trends that can be found within your organization. Flexible workplaces, updated technology and compensation are all among the top perks sought after by recent graduates and young professionals. Position your company as tech-savvy, cutting-edge, employee-focused and innovative. Millennials want their employers to understand the importance of updated technology, so make sure your company is in tune with what is needed for your team to function at the highest level. Any discussion about Millennials and technology is incomplete without a focus on social media. Your company must be present and engaged in social media—and using it for recruitment and engagement. If you are not, you are missing your target audience. You should have a general presence on social media sites including LinkedIn, Twitter and Facebook. The younger generation leverages social media as a standard part of the job search. It is a major red flag to candidates if you do not have a social media presence. Insurers looking to attract Millennials need to re-think their workforce strategies. By updating their company image and embracing a fresh company culture, insurance organizations can combat the skills gap and talent shortage by becoming more accessible and attractive to the next generation of leadership.

Are Industry Regulations Leaving You in the Lurch?

A wave of new regulatory initiatives is hitting the life insurance industry. These reporting requirements are leading many insurers to take a deeper look at their current employees and evaluate their staffing efforts. According to a study by Towers Watson, merely 27 percent of current life insurance personnel understand the basics of these new regulatory requirements. In addition, only 13 percent of key personnel are considered experts in these new requirements and the changes they will bring. Insurance companies are looking to implement in-house training programs, as well as bring in additional staff with a better grasp of the regulatory changes and compliance needs. In cases like this, organizations often turn to subject matter experts to bolster their staff and provide much needed project assistance or to implement critical training programs. In fact, here at Jacobson we are witnessing first-hand the increased demand for contract experts with specialized knowledge and skill sets. According to our recent Semi-Annual U.S. Insurance Labor Outlook Study, 28% of life and health companies are planning to increase their use of temporary employees during the upcoming year, an increase from what was reported a year ago. For companies needing assistance with the upcoming regulatory requirements the minimal ramp-up time, quick deployment and specialized skill set offered by subject matter experts are proving attractive. How is your organization preparing for these pending changes in regulation?

Navigating the Regulatory Waters

It is my pleasure to introduce a guest blogger for this latest post. Jenn Shorr is a contract analyst here at Jacobson, administering contracts and overseeing Jacobson’s risk management program. Her insights into mandated employer benefits are worth a read. Enjoy… The past five to seven years have seen a marked increase in the number of cities, municipalities and states enacting regulations or legislation that require employers to provide a variety of benefits including: paid or unpaid sick leave, disability coverage, extended FMLA leave, and mandated healthcare assistance. There are currently ten cities, municipalities or states that require employers to provide at least some sort of employee benefit—a number that is set to increase by the end of 2014. While some of these regulations have been impacted by the implementation of the PPACA, the movement towards local mandates has been a familiar employee benefits trend. As the workplace experiences a fundamental shift with traditional employment models being modified to make room for part-time, temporary, and consulting relationships, so too has the concept of benefits eligibility and entitlement. If you currently rely on a staffing service provider, you may think these mandates don’t affect you. As the employer of record, the staffing service provider is responsible for all the fees and liabilities; right? Not so fast. Some regulations actually do address temporary employment situations or deem both the staffing provider and the client company as joint employers, even if your agreement says otherwise. As the expert in identifying, retaining and employing talent, your staffing provider should be your compliance partner. They should be aware of the regulations, have compliance and audit processes in place, and clearly spell out your role and participation in the compliance process. Understanding whether your staffing provider has sound compliance processes in place will help you avoid a potentially unknown liability. At Jacobson, we review every situation with a thorough and strategic approach. We are regularly monitoring reliable resources for regulatory updates; and, when a new requirement is enacted, we go directly to the source and read the actual regulation or legislation. Our HR and compliance team meet with our senior leadership to discuss compliance options, the challenges unique to our industry, and the anticipated financial impact. The next step is education. We educate staff members on the regulations and compliance process as it applies to their roles. We educate our clients about their participation. We educate our employees about their rights under the new law or regulation. Finally, we audit, monitor and reevaluate. Where are the communication and administration gaps? Have the regulations been updated recently? No matter how minor the change, we are on top of it. Does your staffing vendor have a process in place for handling changing laws and regulations?

Forecasting a Perfect Storm for Insurance Talent in the U.S.

The results from the January 2014 iteration of our U.S. Insurance Labor Outlook Study are now in. The rate of hiring has increased to its highest point in the entire history of the study, with nearly 62% of survey participants responding that they intend to increase their staff during 2014. In addition, the BLS has reported the January 2014 unemployment rate within the industry to be at its lowest point since March 2007—2.0%. So what does this mean for the insurance industry? While low unemployment and an industry-wide push to fill open positions is certainly a positive trend, it does present its own set of challenges. The current recruiting difficulty that many companies are reporting will only intensify as the industry talent pool becomes depleted. Compared to last year, survey respondents found that the recruiting climate for most functions continued to be moderately difficult, with some positions—including actuarial, analytics, executive and technology positions—becoming slightly more difficult to recruit for. Industry demand is now focused on technology, underwriting, claims and sales/marketing, with technology remaining the most likely position to be filled in 2014. This reflects the growing focus on technology within the insurance market. Positions rated 5 or above are considered moderate or difficult to fill. The low unemployment rate and the recent upcoming hiring push have created a perfect storm in terms of talent shortage and companies must prepare. Looking forward, recruiting top talent, especially in high-demand roles will continue to be a challenge for companies. Focus must now shift towards the recruitment of young professionals, the engagement of individuals outside of the insurance industry and the hiring of subject matter experts in order to combat the growing skills gap and build a strong talent pipeline for the future. Jacobson has already begun targeting this growing need through our Emerging Talent program. This program, which aims to provide insurers with recent graduates and young professionals, has already begun shepherding new talent to our clients in an effort to offset the coming skills gap.

Are Your Employees “In Love?”

Do your employees love working for you or are they just putting on a good show? According to a Gallup survey of the American workplace, 63% of employees are unhappy with their jobs, while 24% of workers actively hate their jobs. Combine these two numbers and just over 1 out of 10 workers in the U.S. actually love their job. The best way to learn how your employees really feel about your company is to ask them. An annual employee satisfaction survey is an efficient way to gauge how happy your employees are with your work environment and culture. At Jacobson, we hold a yearly company survey to determine how our employees are faring, and to see if there are major issues that we need to address. The key to implementing a successful employee engagement survey is making sure that everyone is on board. Unless your leadership and management teams are committed to evaluating the results honestly, and executing changes, conducting a satisfaction survey is going to be ineffective and could leave you worse off. Make sure your workforce is aware of seriously you take their feedback. Send them an introductory email outlining why you are doing a survey, assuring them that all responses are anonymous, and reinforcing the company’s dedication to making changes based on their feedback. Develop your questions around areas of concern. Are you looking for insight on managerial relationships? Ask your employees if they are inspired by their managers, or if they feel like management does a good job of communicating and sharing information. Want to gauge how effective your professional development program is? Ask about training opportunities and whether employees feel that they are supported in their development and advancement. Once the results are in, share them with your staff. Did the survey pinpoint any problem areas or places where your organization may need some improvement? Remember to embrace employee feedback and don’t let negative comments get you down. Each comment is an opportunity to change and grow. Engage your employees by letting them participate in the solutions. Here at Jacobson, we create cross-organizational committees to help craft specific solutions, bounded by well-defined project charters, to address key areas where there is needed improvement. Throughout the past years, these committees have helped us implement some significant changes including: the implementation of casual Fridays, the development of an internal social media network, the creation of a formal career development process, implementation of an education reimbursement program, and many other significant changes. Repeat your survey on an annual basis to see your progress. These year-to-year comparisons provide insight into areas that still need work and are a great way to assess the effectiveness of your improvement initiatives. If your organization can focus on creating a welcoming and open environment that fosters employee satisfaction, success will surely follow. Does your company conduct employee satisfaction surveys? How have the results of these surveys changed your company culture?

Is Temporary the New Permanent?

There is a fundamental shift occurring in the workplace and the insurance industry is no exception. Industry-wide, the traditional employment model is being modified as the use of temporary workers continues to rise. According to the BLS, the penetration rate has reached an all-time high of 2.06%, with the industry bringing on more than 235,000 temporary employees throughout the past year. At Jacobson, we have experienced this trend first hand as the demand for our temporary suite of services continues to grow. Much of this shift can be attributed to a need for flexible, highly-skilled professionals to fill a growing skills gap. As mentioned in my recent post discussing the difficulty faced in securing insurance talent, the BLS is reporting that only 26.67% of the current insurance workforce is under the age of 35. In fact, the median age is closer to 45. As the workforce continues to grey, organizations are looking to temporary employees to fill the gaps. Temporary workers open the door to cost-effective, time-sensitive solutions to specific business needs. These employees often require minimal ramp up time and are able to take on special projects that permanent employees may not have the time nor the expertise to tackle on their own. Organizations are learning to leverage the skills of these temporary workers to complete necessary projects while maintaining a lean core of traditional permanent employees. The myth that contract employees have just settled for temporary work is just that. These professionals often enjoy the flexible lifestyle and diversity of projects that come with interim assignments. Project-work also appeals to individuals who enjoy focusing on niche business problems and using their unique expertise and skills. As the industry’s skill gap continues to expand and the demand for highly skilled individuals grows, I believe the hiring of temporary workers will remain a priority for many companies in the insurance industry. With an Intuit report stating that more than 40% of workers in the U.S will be temporary, contingent employees by 2020, the traditional model of employment is certainly changing quickly. How do you think this shift will affect your organization?

Las Vegas or Bust! Rethinking Employee Engagement

Happy and motivated employees are the key to any successful business. A company will have a hard time being productive and profitable with employees who don’t enjoy their jobs. Yet studies are reporting that anywhere from 66% - 77% of workers in the U.S. are disengaged and unmotivated. So what can we do? There is no exact answer when it comes to motivating individuals. What works for one may not work for all. But creating a company culture where people feel appreciated and recognized for their hard work is a good place to start. Like most companies, Jacobson sets annual goals. Throughout the past 10 years, we have added an incentive for meeting these goals—a company trip. That’s right, we offer our employees (and a guest of their choice) a joint trip, on the company, for reaching our annual targets. At the beginning of the year, we meet with our employees and share with them our objectives for the next 12 months and announce the motivational destination. The goal is then prominently displayed in the break room, so everyone can see how we are progressing throughout the year. Emails recognizing large sales or highlighting hardworking employees are circulated amongst teams, creating a sense of camaraderie and celebrating milestones throughout the year. In the past 10 years, we have taken 4 company trips. In fact, this week, we are taking the company to Las Vegas. The office here at our headquarters is filled with buzz and excitement; and I, too, am looking forward to celebrating our success with each and every employee. A company trip may not work for all companies. However, it is the simple things that often make a big difference. Don’t forget to pat workers on the back for doing a great job or show your appreciation with a catered lunch every once in a while. Whatever the method, employees want to know that their hard work is valued. Show them you care and you will find yourself with a much happier, motivated workforce. What are some employee engagement best practices you have implemented at your organization?

Reason to Celebrate: Women Making Strides in Insurance Industry

I want to use this post as an opportunity to congratulate women in insurance on a major milestone. You’ve undoubtedly heard that Inga Beale was recently appointed as Chief Executive of Lloyd’s, one of the most high profile jobs in the global insurance industry. This unprecedented move makes Ms. Beale the first woman to lead Lloyd’s in its 325-year history. Learn more here. This is undeniably a huge leap forward for women in the insurance industry. Unfortunately, women still face a fairly steep uphill climb to achieve unbiased equality within our industry. In fact, the number of women working in insurance is roughly equal to the number of men – at 191,000 and 197,000, respectively. However, a 2012 study by St. Joseph’s University showed just 6% of top executive positions across the insurance industry were held by women, and only 12.6% of board seats belonged to women. Women are making strides with accomplishments like Inga Beale’s.  What other accomplishments have women in insurance made this year? What other hurdles do they face?