As the retirement of the Baby Boomer generation looms, the insurance industry is facing a serious challenge in attracting the next generation of talent. Curiously, of all the industries Boomers are still working in, the insurance sector employs most of them. The industry’s stereotype of being slow to adapt to change, coupled with its reliance on legacy technology, poses a challenge in recruiting and retaining younger professionals.
The lack of appeal to younger talent has led to a vicious war for talent, and the unemployment rate in the industry is only making matters worse. However, there are ways for insurance companies to overcome this challenge and attract a younger workforce.
How insurance companies can attract a younger workforce
1. Leverage technology
One of the key ways insurance companies can attract a younger workforce is to leverage technology. Emerging technologies like artificial intelligence, cloud-based infrastructure, automation, and blockchain are transforming the insurance industry, and companies that have embraced these technologies are gaining greater market share and are better equipped for growth and agility. Recruiting talent with tech-related skills, including data science and cybersecurity, is critical for companies that want to succeed in this evolving landscape.
2. Focus on ESG and DEI
Insurance companies must also focus on environmental, social, and governance (ESG) and diversity, equity, and inclusion (DEI) issues and initiatives. McKinsey suggests that companies that fail to address these issues could face significant reputational, competitive, and financial fallout. Addressing these issues requires systemic cultural change, especially at the executive level, where women and people of color remain underrepresented.
3. Adopt flexible working models
Flexibility is another critical factor in attracting younger talent. Remote and hybrid work models, which have become the norm in the post-pandemic world, can promote work-life balance and optimized engagement. In an industry that’s often high-stress and high-volume, insurance companies must prioritize employee satisfaction by offering flexible work options.
4. Expand the talent pool
Insurers may have to diversify their recruiting strategies by expanding the talent pool beyond traditional candidates and consider non-traditional candidates, such as those with unlikely educational backgrounds, neurodivergence, military experience, and working parents.
Attracting the next generation of insurance talent
The insurance industry must develop a comprehensive plan to attract the next generation of talent to fill the many positions that the retirement of Baby Boomers will leave vacant. Companies that embrace technology, prioritize ESG and DEI, offer flexible work options, and expand their talent pool will be better positioned to attract and retain top talent. To attract the younger generation of insurance talent, leaders must also conduct an honest assessment of their culture, work environment, and overall brand.
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