The insurance industry is facing a talent crisis. The US Chamber of Commerce said that 50% of the current insurance workforce will retire within the next 15 years. This will create a retirement opportunity with more than 400,000 open positions, with less than 25% of those working in the industry under the age of 35.
In order to attract young talent, these companies need to change the way they work in three key areas to change these trends and create a sustainable workforce of the future. These areas are automation, education and diversity.
Drive to save time and money
Automation during staffing shortages saves advertisers time and money by eliminating or reducing time-consuming or repetitive tasks for open positions.
Underwriters, for example, are the lifeblood of insurance companies, but a lack of interest in the profession from millennial and Generation Z workers has led to unemployment.
Artificial intelligence can automate repetitive tasks such as data entry and free up underwriters to perform cognitive tasks such as approvals. Employees can do meaningful work that makes them feel valued. Additionally, AI reduces the risk of human error.
McKinsey predicts that 30% of the underwriter’s work it may become automatic in the next 10 years. This provides insurance companies with an opportunity to restructure the industry to improve skills and attract younger workers.
Educate the next generation about the insurance industry
According to a research by The Instituteseight in 10 millennials say they have little knowledge and understanding of the career opportunities available within the insurance industry.
Target Gen Z is the younger generations before entering the workforce. Traditional methods, such as job fairs, are great ways to get valuable time but I should also explore using social media as a recruiting tool. It can be a great way to showcase your existing employees and your workplace culture.
Engage your employees by casting a wider net
Searching for talent outside of the insurance industry creates a diverse set of skills, backgrounds and experiences that can bring new ideas and perspectives to your business. Cast a wide net in your search by looking for transferable skills from other industries.
Transferable skills include:
- Management skills. Data entry, scheduling appointments and answering phone calls are universal skills that can be used in administrative roles in any office such as a clerical assistant or application processor.
- Sales skills. Sales talent is easier to train because they have the skills that the buyer needs such as handling objections and closing. You just have to teach about your offerings.
- Customer service skills. A proven track record of strong communication skills is essential for any customer-facing job such as an office manager or financial representative.
It is also worth considering some of the requirements for other roles. Does every employee need a four-year college degree? Are certifications required or can they be acquired on the job? Don’t create unnecessary barriers that can keep good candidates out.
Competition for talent in the insurance industry is currently fierce more dangerous than the competition for customers according to 2021 Independent Insurance Survey. Recruiting is more difficult than ever, it’s important to use recruitment strategies to fill your talent pool.
Sid Upadhyay is the CEO and co-founder WiseHire. They can be contacted at [email protected].
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