Stronger Economic Times Add to Recruitment Challenges

By Tom Rivers | September 20, 2010

People are a company’s greatest asset. Yet finding the right people is often challenging, particularly in the insurance industry. While the economic downturn put a hold on hiring for many firms, the seemingly steady recovery of the U.S. and Canadian markets has allowed the doors to open to new talent once again.

To attract and retain talent, the insurance community must adapt its recruiting practices to the shifting economic times. The current economic climate presents ample opportunity for firms to take tactical steps toward addressing the challenge.

In a weak economy, the talent pool is deep. Applicants are found in abundance and are typically over-qualified. In a strong economy, the talent pool quickly becomes shallow. Companies bid on qualified candidates with multiple offers.

Although some may believe that the talent pool remains deep today, it is actually rapidly becoming shallow, and the insurance industry needs to know how to “swim” in such changing waters. While the economic downturn created a sluggish job market, some firms have yet to adjust hiring practices fast enough to attract talent. Similar to real estate, attractive homes (qualified candidates) receive multiple offers in a strong market, so offers that are slow moving or bid too low, lose out.

The recruitment challenge has been exacerbated by the failure to communicate what the insurance industry offers to potential recruits, along with a growing number of retiring Baby Boomers, creating concern over where the next generation of agents will come from.

A career in insurance is usually not the first consideration of recent graduates. The industry does not have the glamorous of other professions in the finance industry such as investment banking, or alternative careers that seemingly offer a stronger work-life balance.

Despite its image, the insurance industry offers opportunity for career advancement and new challenges, covering a variety of job types and areas of interests. The industry should better communicate its attractiveness to potential recruits.

Adding to the image problem is the growing number of retiring Baby Boomers. According to a Independent Agents & Brokers of America study (2008), the average age of an insurance industry professional is 54, and 60 percent of insurance industry professionals are older than 45. To thrive in the future, finding ways to replace aging Baby Boomers with young talent will be vital.

It is no surprise that talent is often “robbed” within the industry due to a shortage of available and accredited candidates. It is common for talent to be lured by a competitor with an even more attractive package than the current employer.

On a larger scale, highlighting aspects like career advancement, new challenges, and the ability to work in a variety of job types and areas of interest will play a vital role in attracting recent graduates to the insurance industry. Initiatives such as on-campus job fairs and sponsorship programs are strong steps toward addressing the issue.

On a more immediate and tactical scale, there are several steps insurance firms can take to attract and retain talented employees. These tips are especially relevant in an economy that is starting to pickup again, and where candidates may have the ability to “shop-around” job options:

Move faster: Companies with hiring and interview processes that move at glacial speed simply lose out on talent. It is not only polite to give candidates a fast reply, but it allows companies to beat competition in securing a placement.

Hit the market with your best sales pitch: Talk about the company with an enthusiasm that would make a potential candidate want to work there. Sell your services, firm and industry in the same way you would sell insurance to your customers.

Offer an attractive package: Candidates have the ability to shop around in a strong market, so standards in terms of pay and benefits need to be raised.

Keep an open mind: “Work-life balance” now strikes a chord with many, and pure monetary compensation is often no longer enough. When it comes to what might appeal to each potential candidate, remain flexible in offering package options specifically suited to his or her needs. The personalized approach will not go unnoticed.

Topics Talent Market Training Development

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Insurance Journal Magazine September 20, 2010
September 20, 2010
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