Talent retention in the insurance industry: Strategies for success

In any industry, attracting top talent and maintaining a cohesive workforce is essential. But in insurance, it can make all the difference. Retaining talented employees is crucial for your long-term success.

Skilled professionals bring expertise, innovative ideas and strong customer service capabilities that can help you develop effective products, manage risk and deliver value to your clients. High-caliber employees are also more likely to adapt to industry changes, like regulatory shifts and advancements in technology, allowing you to stay ahead of the curve.

Employee retention also contributes to an overall positive organizational culture, which can be a key factor in increasing productivity and delivering on customer satisfaction goals.

And yet, the industry is facing a worrying talent shortage, which has become a pressing issue for many organizations. A number of factors are at play in the current state of affairs, including:

• An aging U.S. workforce: A significant portion of the current workforce is nearing retirement. This includes a large percentage of the current insurance workforce. These retirements will leave a substantial gap in experience and knowledge.
• Continued effects of the “great resignation”: The pandemic prompted many professionals to reevaluate their careers, leading to a wave of resignations. This has left many positions unfilled, exacerbating the talent gap.
• An industry perception issue: Insurance is often viewed as less exciting than other industries, including fintech or other financial services. This perception makes it challenging to attract younger talent. Compounding the issue, many employees feel that traditional career paths in insurance are limited, leading to a lack of engagement and motivation. Younger workers seek diverse experiences and growth opportunities.
• Emerging skills mismatch: As the industry evolves with technology, there’s a growing need for skills in AI, data analysis and digital tools. However, many insurance providers are voicing concerns over potential candidates lacking these skills, making it difficult to fill roles.
• Cultural and diversity gaps: The industry continues to struggle with diversity and inclusion gaps, which can deter some high-potential candidates. Companies that fail to reflect the diversity of the communities they serve may find it harder to attract new talent.

In order to stay competitive in the industry, insurance companies need solid strategies in place to overcome these substantial obstacles. Talent retention requires a multifaceted approach to ensure success.

Understand the critical foundation of knowledge transfer

Whether your organization is facing turnover or succession issues, it is critical to put strategies in place to document job duties and enhance knowledge transfer. Employees who feel they have received training and support are more likely to stay.

• Ensure there are standard operating procedures: Have clear, accessible documentation for team members that supports their job success.
• Leverage technology: Use video, blogs and other technologies that allow users multiple ways to document. If available, seek to implement tools like knowledge management systems to store and update job descriptions and processes.
• Host regular knowledge-sharing sessions: Organize workshops or lunch-and-learns where employees can share insights and best practices. Communicate to employees that these are important scheduling matters and ensure that leadership is actively participating.
• Implement feedback mechanisms: Establish channels for employees to provide input on documentation, ensuring it remains relevant and useful.

Attracting new generations of employees

Have a people plan — what is your written plan to attract talent?

• Highlight career growth: Emphasize opportunities for advancement and skill development within the company. Lay out an employee journey map that is available to all team members.
• Understand flexible work environments: For many organizations, local talent may not be available. Can remote work options or flexible hours appeal to different generations and demographics?
• Create an engaging company culture: Foster a culture that values diversity, inclusion and innovation. These concepts are necessary for attracting the widest range of talent to fill roles.
• Understand social responsibility: For some segments of the workforce, showcasing the organization’s commitment to social causes or giving back to stakeholders may be important.

Training the new generation with AI and data analysis

As technology becomes the norm in the new workplace, integrating these tools is critical to talent retention.

• Demonstrate adoption of technology: Highlight the importance of integrating AI and data analysis tools into training programs. You can use simulations and AI-driven platforms to provide hands-on experience and encourage a culture of ongoing education through online courses and workshops.
• Mentorship programs: Pair seasoned employees with new hires to facilitate knowledge sharing and practical insights.

Talent retention means adapting to new tools and practices to retain talent. For long-term sustainability, this is a call to action for insurance companies to invest in their workforce.

Let’s look at a few real-life examples of companies in the insurance industry who are putting some of these principles into action to help retain talent and foster a more resilient workforce.

1. Training the new generation with AI and data analysis

• Embracing technology:
• Example: A company like Allstate uses AI-driven platforms for training, allowing new employees to engage in virtual simulations that mimic real-world scenarios, enhancing their decision-making skills.
• Mentorship programs:
• Example: State Farm has implemented a mentorship initiative where experienced agents guide new hires through the complexities of insurance products and customer interactions, fostering a supportive learning environment.

2. Documenting job duties and knowledge transfer

• Standard operating procedures:
• Example: AIG maintains a comprehensive digital library of their standard operating procedures that is regularly updated, ensuring all employees have access to the latest procedures and job expectations.
• Regular knowledge sharing sessions:
• Example: Liberty Mutual hosts monthly “knowledge exchange” meetings where employees present case studies or innovative solutions, promoting a culture of continuous learning.
• Feedback mechanisms:
• Example: Progressive Insurance uses employee surveys to gather feedback on documentation processes, allowing for real-time updates and improvements based on employee experiences.

3. Attracting new generations of employees

• Highlight career growth:
• Example: Geico showcases success stories of employees who have advanced from entry-level positions to management roles, emphasizing clear career paths.
• Flexible work environments:
• Example: MetLife offers hybrid work options, allowing employees to choose their work environment, which is particularly appealing to younger generations seeking work-life balance.
• Engaging company culture:
• Example: Chubb promotes a diverse and inclusive workplace, hosting events that celebrate various cultures and perspectives, making it attractive to a broader talent pool.
• Social responsibility:
• Example: Travelers actively participates in community service projects and sustainability initiatives, appealing to younger employees who value corporate social responsibility.

By following some of these best-in-class examples and applying these lessons to your own talent retention and workforce development efforts, you can foster an environment that is primed for growth. Remember, your employees are one of your most valuable resources — the harder you work for them, the stronger your business will be.

How Wipfli can help

Hiring, retaining and training new talent is more difficult than ever in this new labor market. If your organization is struggling to attract and develop the kind of workforce that works for you, let Wipfli help. Our dedicated professionals have a depth of industry experience and understand the real benefits of an engaged workforce. Let us guide you in creating a culture that works for everybody, so you can move forward with a team that drives excellence. Talk with an advisor today.