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Recruiter Report: Recruiting for Skills, Not Experience

The tight labor market continues to intensify, with savvy insurers seeking creative ways to attract qualified professionals and expand their talent pools. Our team regularly works with hiring managers to determine the needs of a particular role, as well as how to creatively uncover qualified, yet perhaps non-traditional, candidates. In this edition of Recruiter Report, we explore how to look beyond professionals’ experience and resumes to uncover their potential for success in a role. Below we explore the pressing question, How can insurers most effectively recruit for skills? Determine the skills necessary for success in a role. Traditionally, many hiring managers focus on specific educational requirements, background experience and past positions titles when defining the requirements for a position. However, this not only limits your candidate pool, it potentially excludes individuals who may have the aptitude and abilities to thrive in the role. Rethink how you approach the recruiting process by identifying the core skills needed for success. Rather than focusing on a specific number of years’ experience in a certain position, identify what you’re hoping an individual would have gained within that timeframe, using this information to influence your search. For instance, transferable skills such as customer service, attention to detail and emotional intelligence are key for claims roles; while strong analytical thinking and sales skills create a solid foundation for underwriters. These interpersonal skills are often more difficult to teach than department-specific programs and processes. Refresh job descriptions to resonate with a broader audience. As you expand your candidate pool and explore less traditional hires, ensure this mindset is also reflected in your job postings. If you’ve previously included long lists of qualifications and desired experience, determine which are vital coming into the role and what can be learned on the job. By distilling your requirements down to the most essential elements, you’ll avoid discouraging otherwise well-qualified individuals from applying. At the same time, rather than simply listing a role’s day-to-day responsibilities, use your job posting to showcase its larger impact, growth potential, and opportunities to flex and develop various skills. Take a fresh approach to how you’re positioning open roles, focusing on making them more inclusive and compelling to a broader audience. Look for talent outside your comfort zone. The industry has recently seen record numbers of open positions; yet, there’s not enough available talent to go around. Keeping specific skills in mind, explore how you can expand your talent pool beyond your standard recruiting campuses and industry competitors. Consider different insurance verticals or even other industries that leverage similar skillsets. Partner with a broad range of college programs, actively participate in career fairs and expand your social media footprint. You may also choose to reach out to specialized recruiting firms with broad networks and extensive reach. Leverage behavioral interview questions. Especially when interviewing individuals who are not making linear moves or lack exact experience, determine how you can best uncover their ability to perform within a role. Rather than solely focusing on their background and past positions, ask questions that are more future-focused and help you understand how a candidate would handle potential scenarios. Here are a few examples of the many open-ended behavioral interview questions that can provide insight into an individual’s transferable skills, thought process and approach to various situations:            • How do you coach your team members to use their critical thinking skills?       • In what ways do you guide your team to advance the goals of the organization?       • Provide an example of a time you made a mistake at work and explain how you fixed the issue.       • Tell me about your biggest professional achievement. Be intentional when selecting interviewers. Along with behavioral interview questions, explore additional methods for further uncovering a candidate’s transferable skills. This could mean having someone other than the hiring manager or department head participate in the interview process. The candidate may feel more at ease with a peer, allowing them to engage in more natural conversation and enabling you to uncover different facets of their experience and skills. As an added benefit, this also grants candidates broader insight into your organization’s people and its culture. Recruiting for skills, as well as experience, is a key strategy for expanding your candidate pool and cultivating an agile and diverse workforce in today’s challenging market. Determine the transferrable skills needed to excel in a role, rework job descriptions to resonate with today’s candidates and create tailored behavioral interview questions to uncover potential beyond a resume. View the last edition of this quarterly series, “Recruiter Report: Job Hopping”

October 2022: Labor Market Pulse

The overall U.S. economy exceeded job growth expectations in September. While the insurance carriers and related activities sector experienced a slight decrease in employment, industry unemployment dropped to below 1% for the first time in nearly a year. Wages also increased year-over-year across all insurance sectors. Following two consecutive months of record finance and insurance job openings, August* saw a significant drop in open positions. However, at 347,000 open roles, this remains well above 2021’s monthly average of 296,000. Additionally, average monthly voluntary quits and average monthly hires remain at record highs in 2022. The industry’s ongoing reshuffling persists, as employers continue to compete in a challenging labor market. AT-A-GLANCE NUMBERS Unemployment for the insurance carriers and related activities sector decreased to 0.9% in September.  The insurance carriers and related activities sector lost  9,300 jobs in September. At roughly 2.8 million jobs, industry employment increased by approximately 37,900 jobs compared to September 2021. The U.S. unemployment rate decreased to 3.5% in September and the overall economy added 263,000 jobs.   INDUSTRY HIGHLIGHTS On a year-to-year basis, August* insurance industry employment saw job increases in agents/brokers (up 3.9%), TPAs (up 3.0%), property and casualty (up 1.5%), and life/health (up 0.4%). Meanwhile, job decreases were seen in claims (down 7.2%), title (down 3.4%), and reinsurance (down 0.7%). On a year-to-year basis, August* saw weekly wage increases in property and casualty (up 10.7%), title (up 6.7%), reinsurance (up 6.1%), life/health (up 5.8%), agents/brokers (up 5.4%), claims (up 4.7%), and TPAs (up 4.5%).        BLS Reported Adjustments: Adjusted employment numbers for August show the industry saw an increase of 5,600 jobs, compared to the previously reported increase of 5,400 jobs. The BLS continues to revise numbers to be most accurate, which may contribute to inconsistencies, depending on when reports were pulled. *The BLS JOLTS report and reports on wages and employment for the industry category are only available for two months prior. The source for the data represented in PULSE is the U.S. Bureau of Labor Statistics. Insurance data is derived from the insurance carriers and related activities sector.

Q3 2022 Labor Market Study Results Infographic

The results of the third quarter iteration of the 2022 U.S. Insurance Labor Outlook Study are now available. The study, led by The Jacobson Group and Aon, plc, examines insurance industry labor and hiring trends. View highlighted stats in our infographic.

Episode 8: Exploring the Current State of the Insurance Labor Market – Q3 2022

As we enter the second half of 2022, insurers remain optimistic about employment growth, according to the results of The Jacobson Group and Aon-Ward’s Q3 2022 Insurance Labor Market Study. Jeff Rieder, partner at Aon and head of Ward Benchmarking, and Greg Jacobson, co-CEO of The Jacobson Group, discuss the study’s key findings and provide insight on areas insurers should consider to stay ahead in the challenging labor market.

The Digitally Lagging Insurance Industry is Poised for a Well-Funded Transformation

Published in Insider Intelligence The insurance industry has lagged behind most other sectors in its digital transformation, but change is coming. Insurance technology spending is expected to grow significantly between 2022 and 2026. Insurers plan to use the increased tech spending to digitize their core capabilities, build out digital self-servicing tools, and create personalized products and experiences for customers. Read this article to explore the importance of digital transformation within the insurance industry.

Jacobson Employee Spotlight – Q3 2022

We’re excited to share that The Jacobson Group was recently named to Business Insurance’s 2022 list of the Best Places to Work in Insurance. As a talent-focused organization, we understand the importance of investing in our employees’ growth and success throughout all stages of their careers. This quarter we’re highlighting two of the many individuals that are integral to our firm’s success. Learn more about them below. RYAN JACOBSON Recruiting Manager, 7 years at Jacobson Hometown: Mapleton, Illinois Alma Mater: University of Illinois Chicago  Describe Your Role: I’m a recruiting manager on our temporary staffing team. I manage and support our researchers and recruiters who source/recruit our hard-to-find (aka unicorn) candidates for subject matter expert roles! Favorite Movie: The Devil Wears Prada Jacobson in Three Words: Transparent, Flexible, Professional When You Grew Up, You Hoped to Become: A veterinarian Random Fact About Yourself: Those who have seen my work background may know, but I own more than 100 plants! Best Place You Have Ever Visited: Santorini, Greece Favorite Dessert: Cheesecake One Thing You Are Grateful For: I’m always so grateful of the work-life balance Jacobson allows! First Concert: An '80s hair metal reunion tour with Cinderella, Ratt, Quiet Riot and Firehouse JOANNE MERRITT Recruiter, 3 years 11 months at Jacobson Hometown: Queens, New York City, New York Alma Mater: The State University of New York at Fredonia Describe Your Role: I am a recruiter for talent delivery. I screen candidates to determine if they are qualified, interested and available for the various temporary roles we are working on. Favorite Dessert: So hard to choose, love eclairs! Jacobson in Three Words: Professional, Integrity, Respectful One Thing You Are Grateful For: Of course my great kids and their significant others, but also for my wonderful circle of friends! First Concert: Unfortunately, I cannot remember, but I was a “Dead Head” and I went to many of their concerts.  Best Place You Have Ever Visited: Italy Favorite Thing About Working at Jacobson: People are treated with respect. I also love the snacks in the office! When You Grew Up, You Hoped to Become: I have always thought I would have enjoyed going into law. Want to join our team? View our corporate careers page here. View past editions of our Employee Spotlight here or follow our Facebook page for monthly spotlights.

September 2022: Labor Market Pulse

The industry’s labor market remains strong with accelerating wage growth and continued low unemployment. Wage inflation for the industry is high, trending toward an overall 6.3 aggregate percent increase in 2022, compared to just 0.8 in 2021. This increase is even more pronounced for property and casualty carriers, which are trending toward a 10.5 aggregate percent increase, compared to -0.3 in 2021; and life and health carriers, which are trending toward 7.4, compared to 0.8 in 2021. Along with industry wage growth, we’re also seeing a substantial increase in open positions within the broader finance and insurance category. In June 2022, the BLS reported a record number of 401,000 open finance and insurance positions. This number has since been revised to 476,000 open positions, with July* 2022 keeping pace at a reported 473,000 open positions. Combined with low unemployment and changing employee expectations, hiring remains incredibly challenging across the industry. In fact, our Q3 2022 Insurance Labor Market Study found nearly half of insurers are having more difficulty hiring than they were one year ago.   AT-A-GLANCE NUMBERS Unemployment for the insurance carriers and related activities sector decreased to 1.7% in August.  The insurance carriers and related activities sector gained 5,400 jobs in August. At roughly 2.8 million jobs, industry employment increased by approximately 49,400 jobs compared to August 2021. The U.S. unemployment rate increased to 3.7% in August and the overall economy added 315,000 jobs.   INDUSTRY HIGHLIGHTS On a year-to-year basis, July* insurance industry employment saw job increases in agents/brokers (up 3.6%), TPAs (up 3%), property and casualty (up 1.3%), and life/health (up 0.8%). Meanwhile, job decreases were seen in claims (down 6.1%), title (down 1.7%), and reinsurance (down 1.1%). On a year-to-year basis, July* saw weekly wage increases in property and casualty (up 7.7%), claims (up 5.4%), life/health (up 5.3%), agents/brokers (up 4.9%), title (up 4.8%), and TPAs (up 2.8%). Meanwhile, wages decreased in reinsurance (down 1.7%).       BLS Reported Adjustments: Adjusted employment numbers for July show the industry saw an increase of 2,400 jobs, compared to the previously reported increase of 6,200 jobs. The BLS continues to revise numbers to be most accurate, which may contribute to inconsistencies, depending on when reports were pulled. *The BLS reports on wages and employment for the industry category, as well as its Job Openings and Labor Turnover Survey (JOLTS), are only available for two months prior. The source for the data represented in PULSE is the U.S. Bureau of Labor Statistics. Insurance data is derived from the insurance carriers and related activities sector.

Recruiting and Retaining Claims Talent in the Candidate’s Market

Published in Insurance Journal Demand for claims professionals has reached historic levels. Coupled with an extreme labor shortage and a reshuffling of talent industry-wide, competition for top talent is fierce. A renewed approach to recruitment and retention is key to a fully-staffed and engaged claims team. This article highlights best practices on developing talent management strategies for success in today's market.

Recruiting Amid the “Great Realignment”

The insurance labor market continues to evolve. Insurers are undergoing a realignment, as they establish how their businesses will operate long-term, following the disruption of the pandemic. At the same time, the talent shortage persists and an already challenging recruiting climate is compounded by shifting employee expectations, hybrid environments and reestablished priorities. It’s necessary for organizations to lean into the evolving landscape and redefine how they attract the right talent to move business forward. In a recent issue of Compass, The Jacobson Group’s Judy Busby, senior vice president of executive search and corporate strategy, shared advice for remaining competitive in the current market. Their piece, “Recruiting Redefined: Staying Competitive Amid Realignment,” explores best practices for effectively positioning open roles, designing a positive candidate experience and investing in successful hiring outcomes. Below are a few of their insights. Broaden the talent pool. Be creative and inclusive in how open roles are structured to appeal to a broader range of qualified professionals, including those with non-traditional backgrounds. Rethink position requirements and distill postings down to only essential qualifications and experience. Consider how you can reduce in-office requirements to further expand your talent pool and eliminate geographic restrictions. As traditional insurance roles evolve and new needs emerge, focusing on transferable skills and prioritizing flexibility will enable you to cultivate a more diverse and future-focused candidate slate. Redefine the candidate experience. The current labor market is the tightest many have ever experienced. As a result, candidates have become more selective in their job searches and are accustomed to having the upper hand throughout the recruiting process. The pace of hiring has also accelerated, making it vital to showcase what your company and team have to offer during a condensed interview process. To be most impactful, communicate frequently, maintain momentum and tailor your approach to resonate with each individual candidate. Interview with intention. In today’s recruiting environment, it is likely candidates will be interviewing with multiple companies simultaneously. Ensure you’re taking a strategic approach to maximize the value of each touch point and enabling your team to make an informed and timely hiring decision. Align those involved in the interview process on the specific information they are gathering, the skills they are responsible for assessing and how you will objectively determine if someone is right for the role. Evolving your recruiting strategies to accommodate a more selective and discerning candidate base is essential to remain competitive amid the industry’s realignment. Read the full article for more on elevating the candidate experience and standing out in today’s labor market.

Q3 2022 Insurance Labor Market Results: Opportunities Abound

The industry is in the midst of one of the tightest labor markets many have ever experienced. Job openings have peaked in the past few months, voluntary quits are high, and we’re continuing to see an industrywide realignment as both professionals and employers assess their long-term needs and desired working environments. The results from our recent Q3 2022 Insurance Labor Market Study, conducted in partnership with Aon-Ward, indicate the tight market is not letting up any time soon. While 95% of insurance carriers plan to maintain or increase their headcounts throughout the next year, nearly half are finding their ability to hire more difficult than it was one year ago. This abundance of open roles provides a wealth of opportunities for professionals considering their next career move. Despite perceived uncertainty in the larger U.S. economy, 68% of insurers plan to add staff in the next year, which is 11 points higher than July 2021 and 5 points lower than January 2022. Anticipated increases in business volume is driving the need to add employees, followed by areas currently being understaffed. More than three-quarters of the insurers planning to hire seek experienced professionals, and 22% aim to hire entry-level employees. Of the 12 functions surveyed, actuarial is the most in need of entry-level individuals, with operations and claims close behind. As the industry continues to evolve and transform, technology roles remain in the highest demand, followed by underwriting and claims positions. Overall recruiting difficulty is unchanged from January, remaining at its highest level in the study's 13-year history. All functional areas except operations, sales/marketing and executive roles are considered more challenging to fill than one year ago. In addition to being most in demand, technology roles continue to be considered the most difficult to fill, followed by actuarial and analytics. Amid these hiring challenges, the use of temporary staff is also at an all-time high. Nearly all insurers (96%) plan to either increase or maintain their current use of temporary employees over the next 12 months. While COVID-19 restrictions have largely been lifted, flexibility continues to be a priority for most professionals. As organizations determine their longer-term operating plans, the majority of insurers plan to offer flexible working arrangements. Fifty-five percent of respondents plan to allow employees to work remotely full-time, up ten points from the January 2022 study. Additionally, 84% plan to offer hybrid work as offices reopen. The Q3 2022 Insurance Labor Market Study took place from July 11 through July 31, 2022, with participation from insurance carriers across all industry sectors. The semi-annual survey collects and examines data on insurance industry hiring, as well as revenue trends and projections. For more insight on the industry’s hiring plans and additional labor market details, view the full report. If you’re considering a career move, read our past posts on taking a mindful, focused and professional approach to your job search.

Insurers Anticipate Staffing Increase Over the Next Year Despite Recruiting Difficulty: The Jacobson Group

Published in Insurance Journal: Amid one of the most competitive labor markets the insurance industry has ever seen, talent is a top priority for most leaders. Although recruiting difficulty remains at its highest point, the majority of insurers are still planning to add to their teams in the next year. Read this article to explore more valuable insights into the recruiting climate and talent outlook.

Q3 2022 U.S. Insurance Labor Market Study Results

The Jacobson Group and Aon-Ward conducted a study to investigate hiring trends within the insurance industry. The following presents the findings of an insurance labor survey conducted in the third quarter of 2022...