Over the past year, the insurance industry has verbalized ambitious hiring goals to anticipate increased premium volume. In fact, according to BusinessWire, 72% of carriers planned to increase their staff in 2022 – a 16-point increase from the June 2021 study. Despite lofty hiring goals, insurers are finding that it’s harder than ever to attain talent. With the average age of the insurance industry at about 44 years old, it begs the question: what does hiring (and retaining) new talent look like in 2022?
Beer fridges, kegs, the ability to bring pets to work and unlimited PTO are cool perks – but ultimately, that’s where it ends. The COVID-19 pandemic (I know, I’m sick of hearing about it too) has pushed insurers to digitize in order to optimize their operations, but also, to allow for business to continue as usual for their employees and reps. With this whirlwind of a new digital age comes expectations of a new standard of work and culture.
Transforming Hiring
If we’re going to start anywhere, it’s best to start at the beginning – hiring and attracting new team members. Unsurprisingly, recruiting and attracting talent has seen a shift. More than ever, potential employees are requiring that for them to consider future roles, the opportunity has to be hybrid at the minimum, with remote roles being highly favored. With the digitization movement in insurance, advanced technology (and more efficient operations) have allowed almost every role to perform sufficiently in a remote environment.
To turn the tables, employers are seeking new qualities in their applicants that previously would have fallen into the “would be nice” category. For example, the industry (and world, really) is rapidly changing. The ability to be agile as an employee is becoming a trait that many employers within insurance cannot survive without. Similarly, employees who are highly adaptable and can comfortably – and fashionably – wear many different hats while going with the flow are more likely to keep up with these times.
Attracting the Next Generation
I mentioned earlier that the average age of an employee within the insurance industry is 44 years old. Although it’s only a few percentage points above the national average, you’d be hard-pressed to walk into a college bar and find a college student who is “excited to work in insurance.”
Today’s young Millenials and Gen Zers are very keen on activism and knowing that their employer puts their money where their mouth is. I am a young Millennial myself, and when I was job searching after college, I was coming from the world of fundraising and volunteering. With my past experiences, I knew that my first job had to be at a company that matched my values. Luckily, I not only had a compelling story myself about why SambaSafety’s mission resonated with me, but others in the company were able to share how they lived through SambaSafety’s mission every day through their work. THAT was a big deal!
Lastly, a focus on coaching is especially valued for your younger applicants. How are you going to help them gain more industry knowledge? Do you have a mentoring program in place? What internal operations do you have in place to promote from within? One of my favorite things about SambaSafety is their willingness to promote from within and grow young talent. I have yet to run into anyone at this company who will turn down someone who’s asking for help or guidance. From speaking with peers at other companies, this is not the norm, which is a shame!
You Knew It Was Coming…. Pay
Real, GOOD talent knows what they are worth. As I mentioned above, the extra “perks” of beer fridges or whatever are cool, but I’ve never heard of someone taking a lower-paying job just for a Friday Keg Day. nCino, a FinTech based out of Wilmington, NC, bases its pay on a national scale despite the area trending 15-30% lower than other markets. “That was a fundamental strategic decision we made to make sure we get the right quality people as well as the foundation for a successful company,” said Pierre Naude, Chairman and CEO of nCino.
Your employees are talking, posting on Glassdoor and looking at what your competitors are paying to compare. The best way to attract top talent – and keep them – is by offering them a competitive compensation package. If your hiring team is constantly running into issues with underqualified applicants, I urge you to take a look at the salary and compensation package that you’re offering. Are you offering to pay for the seasoned professional you’re seeking, or an entry-level persona?
We’ve barely scratched the surface of everything the insurance market is seeking in a new role. But with what I did touch on, I leave you with a couple of questions to chew on:
1. Are you trying to force office culture back, and noticing hiring trends dipping as a result?
2. Is your agency/company making enough of an attempt to attract younger applicants, if at all?
3. Are your compensation rates comparable to the national averages, or local?
If retention is a pain point for your team, watch this webinar to learn how data can transform your strategic approach.
