How to Address the Insurance Industry’s Talent Crisis
The US insurance industry is facing a talent crisis.
- A quarter of workers in the sector are expected to retire in the next few years, leaving a projected 400,000 vacancies unfilled by 2020.
- The industry is hiring at record levels but the biggest challenge companies are facing is to secure new talent, according to the 2018 Insurance Industry Employment and Hiring Outlook Survey.
- Employee retention among millennials is a problem for the sector. It is estimated that they remain in their jobs for just 12-18 months on average.
A new approach to talent acquisition and retention strategies is a must for insurance companies to remain competitive. And to succeed in the long-term, career pathing must form an integral part of that approach.
Career pathing offers an innovative strategy that meets the demands of today’s talent, while helping to address the issues of engagement and retention. In doing so, it also makes your company more appealing to external talent looking for their next career move.
Here are just three ways where effective career pathing addresses some of the specific issues facing the insurance sector:
Promoting upskilling in your organization
The 2018 Insurance Industry Employment and Hiring Outlook Survey notes that talent is required in five key areas, ie, sales, underwriting, customer services/admin, technology and claims. The lack of available talent is also the key obstacle to hiring in these disciplines but internal mobility and upskilling opportunities are often overlooked by employers.
Career pathing enables your employees to identify areas for upskilling that are preventing them from achieving their potential with your company – and fill some of those vital skills gaps.
Addressing the technology skill shift
The insurance sector is facing a significant workforce transition as the demand for professionals with advanced technological skills grows. McKinsey’s 2018 report Skill Shift – Automation and the Future of the Workforce highlights the impact that the tech skills shortage will have on the workforce of the future. In particular, the impact of automation and technology on the insurance sector is accelerating the skill shift.
But it also highlights the need for new strategies and ‘a new emphasis on continuous learning for workers’. Career pathing enables your employees to highlight their personal areas for continuous learning which align with your organizational goals.
Millennials seek a position with purpose which also offers a strong career path and clear employee development opportunities. The freedom to map out their own career path is central to that. Repeated studies consistently show that without that option they will look for an employer who can meet their expectations.
Career pathing is the first step towards achieving this and is becoming increasingly critical in an industry that is failing to offer what millennials see as a viable or fulfilling career.
Implementing a career pathing strategy
Career pathing is a straightforward concept and is not difficult to implement within your business. Clear career development paths enable your company to create a more engaged and motivated workforce. By charting out an employee’s future career, performance objectives and training needs can be incorporated that meet your company’s aims. An effective career pathing strategy could also prove to be the key to your long-term talent management success in an industry facing a talent crisis.
For more information on what career pathing is and how to get started with career pathing, read our blog here.
Support your talent management strategy in 2019 with award winning software from TalentGuard. Our dedicated career pathing software empowers your employees to map multiple career path scenarios, review job competencies and evaluate skills gaps in order to achieve their career goals.
Download the white paper: Career Pathing as a Talent Imperative