400,000 Insurance Professionals Are Retiring
Because of demographic changes, insurance companies, like many other industries, face an impending talent shortage that will force changes in the way they recruit.
Almost 400,000 people are expected to retire from the insurance industry within the next few years, according to the U.S. Bureau of Labor Statistics. That will mean a tremendous shortage of workers. Automation will help take up some of the slack, but there is still a need for human judgment to do underwriting.
This looming shortage, along with data showing that millennials are shunning the industry, means insurance companies will need to make major changes in the way they recruit new employees, according to industry officials.
The insurance industry isn’t the only employer playing catch up. Many other industries are also unprepared for the wave of baby boomer retirements coming and the loss of a great number of skilled, experienced workers. Those industries that recruit effectively and develop and train their workers will be the ones that prosper in the coming years.
Because of the impending demographic changes, insurance companies need to reexamine the way they recruit and screen candidates. In the past, because there were more qualified candidates than jobs, the procedure was to screen out applicants. But now insurers need to take the opposite approach – convincing workers they should make a career in the insurance industry.
This puts an increased focus on human resources, who are the eyes and ears of the industry. These departments have essentially two options – look for experienced people outside the company or develop the talent within the company.
Companies will need to take more time to explore people’s skills and strengths to determine where they can put those strengths to work within a company. When people are able to use their strengths, they find much more satisfaction in their job.
To fill positions, insurance companies are going to have to focus on millennials. To capture their interest, companies will have to highlight things like job security, job satisfaction and recognition.
Companies are also adapting their interview processes as well, using more video conferencing and social media, as well as allowing job candidates to interview with other employees who will be their colleagues at the company.
If your company is looking for qualified, reliable insurance professionals, contact Insurance Relief today. We are one of the best in the business, winning a Best in Staffing award for our accomplishments. At Insurance Relief, we thoroughly evaluate each person so you get only the best. Give Insurance Relief a call today.