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The Human Element of AI Transformation

Discover ways to effectively navigate through AI transformation. Only 4% of companies say they’re creating real value from their AI investments. The key differentiator is how well organizations manage the human side of implementation. 

Download the white paper to explore best practices for taking a human-focused approach as you lead through change.

Recruiter Report: Find the “Perfect” Candidate

Finding top talent remains difficult in today’s labor market. However, holding out for the “perfect” candidate may mean losing out on high-potential individuals that would thrive in the role.

Read our blog post gain insights on redefining what the ideal candidate looks like and share how to take a realistic and future-focused approach to making the right hire.

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Recruiter: Half of the Current Workforce Expected to Retire in Next 15 Years

It's no secret there's been an ongoing shortage of young talent in the insurance industry. In a recent AM Best TV interview, Mike Abate shares why a thoughtful and purposeful approach to attracting and growing today's emerging leaders is essential for insurance organizations.

Compass 16.4: Creating an Exceptional Employee Experience

This quarter’s Compass feature article shares insights on fostering a positive impact on culture, collaboration and more. The newsletter also includes an overview of the industry's current labor market and recent executive-level job changes.

November 2023: Labor Market Pulse

While the unemployment rate for insurance carriers and related activities rose slightly in October, it remains low at 1.7%. At the same time, job openings for the larger finance and insurance sector are at their highest level since July 2022, reaching 479,000 in September* (nearly 200,000 more open positions than reported for September 2022, which saw a notable drop). Even as overall movement within the industry appears to be stabilizing, low unemployment and an abundance of opportunities means there’s continued competition for talent, making retaining current employees even more important.  Now is an ideal time to invest in internal training and development opportunities, which can help employees feel invigorated and energized. As we near the end of the year, it’s also valuable to revisit succession plans and retention strategies in preparation for 2024. For more insights on the current state of the labor market, stream our most recent podcast.  AT-A-GLANCE NUMBERS   Unemployment for the insurance carriers and related activities sector increased to 1.7% in October.  The insurance carriers and related activities sector gained 1,100 jobs in October. At nearly 3 million jobs, industry employment increased by approximately 36,600 jobs compared to October 2022. The U.S. unemployment rate slightly increased to 3.9% in October and the overall economy added 150,000 jobs.   INDUSTRY HIGHLIGHTS On a year-to-year basis, September* insurance industry employment saw job increases in TPAs (up 3.5%), reinsurance (up 2.6%), claims (up 2.5%), life/health (up 1.9%), agents/brokers (up 1.4%), and property and casualty (up 0.5%). Meanwhile, jobs decreased in title (down 8.2%). On a year-to-year basis, September* saw weekly wage increases in title (up 9.8%), property and casualty (up 9%), agents/brokers (up 5.4%), life/health (up 4.9%), TPAs (up 4.4%), and claims (up 3.9%). Meanwhile, wages decreased in reinsurance (down 4.1%).      BLS Reported Adjustments: Adjusted employment numbers for September show the industry saw an increase of 4,000 jobs, compared to the previously reported increase of 3,900 jobs. The BLS continues to revise numbers to be most accurate, which may contribute to inconsistencies, depending on when reports were pulled. *The BLS Job Openings and Labor Turnover Survey 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.

Episode 11: Exploring the Current State of the Insurance Labor Market: Q3 2023

Jeff Rieder, partner at Aon and head of Ward Benchmarking, joins host Greg Jacobson, co-CEO of The Jacobson Group, to discuss the results of the Q3 2023 Insurance Labor Market Study. The duo share insights on AI, wages, hybrid work and more to help insurers remain at the forefront of a dynamic labor market.

Creating a Comprehensive Onboarding Experience

With the pandemic ushering in new workplace dynamics, a comprehensive onboarding strategy tailored to virtual environments is critical. It's a chance to lay the groundwork for the knowledge, connections and sense of belonging that will set an employee up for success throughout their tenure.In our recent issue of Compass, Judy Busby, senior vice president of executive search and corporate strategy, and Jack Walsh, managing director, share insights into creating an onboarding experience that not only engages new hires, but also supports their continued productivity and loyalty. Here are just a few of the key takeaways from their feature article, "Onboarding for Long-Term Success." Acknowledge the impact of "preboarding." Successful onboarding begins even before a new employee's first day. Maintaining the momentum built up in the interview process can be as simple as having team members send welcome notes through email or LinkedIn. Depending on your budget, you may also consider sending a welcome gift such as company swag or specialty foods. Additionally, it's essential to plan ahead for your new hire’s first week, sharing an initial schedule and making sure they are equipped with the necessary technology to hit the ground running. For remote employees, consider asking them to come into the office at least once during their initial weeks, bridging the virtual gap with face-to-face interactions. Cultivate connections from day one. A sense of connection is essential for engaging new hires; however, these interactions must be much more intentional in remote environments. Determine how to begin creating connections from day one. For instance, start with a brief team meeting on the new employee's first or second day to help names become faces and provide initial introductions. Throughout the first few weeks, schedule 20-minute “coffee chats” for one-on-one time with their team members and other colleagues they’ll regularly collaborate with. Assigning a mentor or buddy can also provide valuable guidance and support as they navigate their new role. Ensure your onboarding schedule carves out time for conversations and relationship-building sessions – both formal and informal.  Offer ongoing support. Continually aligning on expectations and promoting two-way feedback are vital components of a successful onboarding journey. Dedicate time each week in the employee's first months to gauge progress and identify areas where you can offer enhanced support. As the initial onboarding phase concludes, continue with monthly check-ins to explore their evolving experience, alleviate any pain points and adapt onboarding strategies for future hires.Thorough onboarding is pivotal in positively shaping an employee’s overall journey with your organization. For more insights on creating a thoughtful and comprehensive onboarding strategy, view the full article.For more talent insights, subscribe to our Compass newsletter.

Health Highlights: Q4 2023

The healthcare space continues to evolve amid ongoing challenges, pressures and shifts. In our team’s recent conversations with leaders across all areas of health insurance, creating comprehensive human capital strategies remains top of mind. Today’s pace of change and challenging market requires the ability to be creative and flexible in leveraging talent and meeting members’ needs.  Below are a few foundational areas that contribute to today’s strategic and holistic talent strategies. Shifting NeedsAs the industry evolves in response to changing demands, regulations and customer expectations, it’s important for organizations to think about their current talent and those individuals’ potential to meet future organizational needs. This includes considering how to laterally move employees into different areas of the business and broaden their skillsets to span a variety of scenarios. Especially as artificial intelligence and automation open new doors, employing professionals who can flex to take advantage of these opportunities is essential. Additionally, member experience and accessibility remain priorities across the industry. Individuals are demanding more digital-first solutions and roles such as chief experience officer are becoming more prominent within healthcare. Not surprisingly, technology roles are currently the most in demand positions within life and health insurers, according to our Q3 2023 Insurance Labor Market Study. The most astute health plans are focusing on future needs and connecting these to their current talent strategies and employee development initiatives. Long-Term Talent GapsAdding to the complexities of an evolving marketplace, the talent shortage persists for both payers and providers. Demand is increasing as the overall population ages, compounding the current workforce shortage. A recent PwC study found 82% of health industry executives consider the ability to attract and retain talent as a moderate to serious business risk, compared to 71% of executives across all industries. In the past 12 months, the primary reason life and health insurers added staff was due to areas being understaffed. Remedying this staffing shortage is a key focus, especially as burnout becomes more common and employees’ mental health suffers from feeling overworked. To build a stronger talent pipeline and grow individuals from within, insurers may consider bringing back more structured internships and training programs. Additionally, it may be necessary to focus on reskilling and upskilling from complementary areas of the business to consistently help alleviate shortages and balance workloads. Short-Term Labor ShortagesAlong with the persistent talent shortage, worker activism has been on the rise in recent months, with strikes taking place in a variety of industries, including healthcare. The inability of wages to keep up with inflation, coupled with a tight labor market, have had a hand in catalyzing multiple strikes around the country. Overall, employees are becoming more vocal in terms of their expectations around working conditions, pay and benefits. Being proactive and having contingency plans in place in the event of a work stoppage can be crucial in preventing harmful lapses in care and member experience. Temporary staffing firms that specialize in the health insurance industry can provide the necessary talent to bridge these gaps when needed, as well as alleviate standard fluctuations in workload, contributing to the work-life balance and mental wellness of current employees. In fact, 33% of life and health insurers plan to increase their use of temporary employees, compared to 14% in January 2023.    As health plans face new challenges and opportunities for growth, having the right talent in place will be essential to remain competitive. In the midst of the talent shortage, finding the right individuals with unique skill sets and specific expertise is often a prime differentiator. Intentional and strategic talent strategies are key in coming out ahead in the second half of 2023 and beyond.  As both expected and unknown changes take place in healthcare, creative, thoughtful and future-focused talent strategies can help set the stage for ongoing success. For more insights, view our past edition of Health Highlights. 

October 2023: Labor Market Pulse

The industry continues to face layered complexities and pressures, further compounding an already difficult talent landscape. The unemployment rate for insurance carriers and related activities continues to decline, dropping to 1% in September, compared to 3.8% for the overall U.S. economy. Given month-to-month fluctuations and a limited BLS sample size, the three month rolling average of 1.3% may paint the most accurate picture of the current situation. Job openings for the larger finance and insurance industry jumped by 100,000 in August*, reaching 417,000 – the highest we’ve seen since April. Industry employment continues to rise; yet, recruiting remains challenging amid a tight labor market.      AT-A-GLANCE NUMBERS   Unemployment for the insurance carriers and related activities sector decreased to 1% in September.  The insurance carriers and related activities sector gained 3,900 jobs in September. At nearly 3 million jobs, industry employment increased by approximately 43,000 jobs compared to September 2022. The U.S. unemployment rate stayed at 3.8% in September and the overall economy added 336,000 jobs.   INDUSTRY HIGHLIGHTS On a year-to-year basis, August* insurance industry employment saw job increases in reinsurance (up 4.7%),  life/health (up 2.1%), TPAs (up 2.1%), property and casualty (up 0.9%), and agents/brokers (up 0.6%). Meanwhile, job decreases were seen in title (down 7.9%) and claims (down 1.4%). On a year-to-year basis, August* saw weekly wage increases in title (up 10.4%), property and casualty (up 9.1%), TPAs (up 5.5%), life/health (up 5.7%), agents/brokers (up 3.5%) and claims (up 4.8%). Meanwhile, wage decreases were seen in reinsurance (down 6.3%).      BLS Reported Adjustments: Adjusted employment numbers for August show the industry saw an increase of 3,100 jobs, compared to the previously reported increase of 7,600 jobs. The BLS continues to revise numbers to be most accurate, which may contribute to inconsistencies, depending on when reports were pulled. *The BLS Job Openings and Labor Turnover Survey 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 2023 Insurance Labor Market Results: Majority of Insurers Adding Staff

The insurance industry’s 12-month hiring outlook is bright. Unemployment remains low at 1.4% and job openings are abundant, according to Bureau of Labor Statistics’ data. As we move through 2023, the insurance talent landscape is strong and stable. Our recent Q3 2023 Insurance Labor Market Study, conducted in partnership with Aon-Ward, found the majority of insurers plan to add staff and increase revenue in the next year. Sixty-three percent of insurers expect to add to their headcounts and 27% plan to maintain their current staff sizes. The most common reason for this anticipated growth is an increase in business volume, followed by expansion of business/new markets. Technology roles are the most in demand industrywide, followed by claims and underwriting positions. All functional areas are considered at least moderately difficult to fill, with technology being the most challenging. However, recruiting difficulty has eased in the past year for seven of the 11 areas surveyed. Experienced staff continues to be the industry’s greatest need overall, with 78% of respondents sharing they are most likely to hire experienced individuals, followed by entry-level employees (20%), and executives (1%). Entry-level staff is in highest demand within operations (48%), followed by claims (27%) and underwriting (23%). The vast majority of insurers are continuing to offer flexible work options and just 4% of companies expect the majority of their staff to be in the office every day. Ninety-two percent of carriers currently offer a hybrid model and 68% offer fully remote work. Through the end of the year, 65% of carriers expect the majority of employees to be in the office at least one day per week, down from 72% in January 2023. Thirty-two percent of carriers shared they expect the majority of employees to be fully remote, up from 25% at the beginning of the year. For those companies offering a hybrid work option to employees, 73% consider employee input when determining the days required in office. As the industry comes out of “the Great Reshuffle” and insurers determine their plans for moving forward – whether that’s remaining remote or asking employees to return to the office – professionals have a lot to consider when contemplating future moves and long-term career plans. If you’re considering a career move in today’s market, or just looking to hone your current skills, view this recent post, “Taking Charge of Your Professional Development.” The Q3 2023 Insurance Labor Market Study took place from July 10 through August 6, 2023, 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.

Recruiter Report: Planning for a Long-Term Hybrid Workforce

Recruiter Report: Planning for a Long-Term Hybrid Workforce

The data in this blog was updated in September 2024. In our conversations with insurance leaders, an increasing number of companies are sharing their plans to remain hybrid for the long term. In fact, our Q3 2024 Insurance Labor Market Study found 72% of insurers currently offer hybrid work, with more than three-fourths expecting employees to be in the office at least one day per week through the end of the year. If your organization is aiming to maintain or implement a hybrid work model moving forward, there are several factors to consider. This includes the potential impact on recruiting efforts and expectations, especially now that many of today’s professionals are accustomed to fully remote work. In this edition of Recruiter Report we address the question, "How can you prepare to recruit for long-term hybrid environments?" Understand the impact on your candidate pool. Hybrid work may sound like an effective compromise between fully in-person and fully remote environments. However, know that requiring employees to come into the office even once per week limits your candidate pool to your local market. At the same time, local candidates may have been abundant pre-pandemic, yet many professionals have since taken on fully remote positions with companies in other parts of the country. Outside of these blurred geographic boundaries, we’re also seeing candidates push back on positions that require going into the office at all, even when they live close by. As you’re recruiting for open positions, ensure you are transparent with candidates – regardless of where they currently reside – about your organization’s longer-term plans. If you are marketing an open role as remote, but there are talks of returning to the office in a hybrid or full-time capacity, tell candidates that information up front to avoid surprises on either side. Consider how you can provide flexibility while achieving your goals. Candidates are still largely seeking remote work and often requiring larger salaries if they’re being asked to come into the office on a regular basis. However, regardless of how much money you can offer, flexibility remains a high priority and common deal breaker for top candidates. In many organizations, it’s common for positions to be vacant due to individuals seeking more flexibility and fewer in-office requirements. This not only impacts your current workforce, but also may leave holes in your succession planning efforts. Determine how you might be able to meet the needs of a broader array of professionals while still satisfying your in-office goals. For instance, perhaps you ask employees to come in for a few consecutive days a month and dedicate this time to in-person meetings and team building, rather than requiring everyone to come into the office once or twice each week. This achieves the same objectives, while also expanding your talent pool to different geographic locations. Additionally, consider letting local employees come into the office for in-person meetings when needed, with the option to return home to finish their workday. Focus on what you are trying to achieve and then develop your in-office requirements with those goals in mind. The more flexibility you provide employees, the more receptive they will be to coming into the office when necessary. Focus on young professionals and growing talent from within. If you are intent on requiring at least one day in the office per week, consider revisiting your approach to recruiting and developing recent graduates and entry-level talent. Many insurers have sunset their once robust internship and trainee programs. However, reinstating these opportunities can cultivate a strong bench of local talent that can be grown into more senior-level roles. Young professionals are also more likely to appreciate the opportunity to be in the office, valuing the exposure, networking and hands-on learning experiences these in-person interactions provide. Candidates’ mindsets have evolved in the post-COVID world; personal time is valued over commute time, and employers’ expectations may need to be reevaluated and reset. No matter how often you plan to require employees in the office, recognize the potential impact on your candidate pool and be as flexible and creative as possible in accommodating individual needs. What has your experience been with recruiting hybrid talent? Share your insight in our LinkedIn poll below. For more recruiting best practices, view our past editions of Recruiter Report.

Select Jacobson Employee Spotlight – Q3 2023 Jacobson Employee Spotlight – Q3 2023

Jacobson Employee Spotlight – Q3 2023

We are thrilled to announce that The Jacobson Group has once again been named to Business Insurance's list of the Best Places to Work in Insurance. At Jacobson, we’re dedicated to our team members’ growth and success throughout all stages of their careers, and are honored to be recognized as a workplace where employees can thrive. In this quarter's spotlight, we’re highlighting three of the many dedicated individuals who contribute to our workplace culture. Discover more about them below. HANNAH MATTALIANO Senior Visual Design Coordinator, 2 years at Jacobson Hometown: Chicago, Illinois Alma Mater: Flagler College Describe Your Role: I work on the marketing team as the visual design coordinator. I’m responsible for designing all our thought leadership and collateral pieces.  Favorite Sports Team: I grew up in Pennsylvania so I’m very loyal to Philly teams, including Eagles, 76er’s and Phillies! Jacobson in Three Words: Experts, Professional, Hardworking Weirdest Job You Have Ever Had: I delivered newspapers in high school. It was an absolute nightmare of a job! Favorite Thing About Working at Jacobson: Working with such a great team and the work-from-home flexibility One Thing That Recently Made You Smile: My cat, MJ. He sleeps on my desk next to me while I work. Last Song You Listened To: "Shake It Off" by Mariah Carey GABRIELLE PLOESSL Account Representative, 1 year at Jacobson Hometown: Dubuque, Iowa Alma Mater: University of Dubuque (BBA in Human Resources Management) and Upper Iowa University (MBA in Human Resources Management) Describe Your Role: I am an account representative on the contingent workforce solutions team. I work with both clients and candidates to coordinate and create successful engagements. Jacobson in Three Words: Family, Unique, Hardworking  Career Advice You Would Give to Your Younger Self: Never stop learning and be a team player. Last Song You Listened To: "Heat Waves" by Glass Animals Favorite Sports Team: Green Bay Packers One Thing That Recently Made You Smile: My adorable nephew, Rowen

September 2023: Labor Market Pulse

Unemployment continues to decline within the insurance carriers and related activities sector, falling to 1.4% in August, despite a slight increase in the overall economy’s unemployment rate. Job openings within finance and insurance remain elevated compared to pre-pandemic numbers and total separations have declined compared to last year. The previously volatile labor market appears to be settling; however, recruiting remains a challenge.  Our Q3 2023 Insurance Labor Market Study, conducted in partnership with Aon-Ward, found carriers are finding it at least moderately difficult to recruit for positions across all areas of insurance. Yet, the majority of insurers are planning to increase their staff sizes in the next 12 months. View more of the study’s findings here.  AT-A-GLANCE NUMBERS Unemployment for the insurance carriers and related activities sector decreased to 1.4% in August.  The insurance carriers and related activities sector gained 7,600 jobs in August. At more than 2.9 million jobs, industry employment increased by approximately 39,400 jobs compared to August 2022. The U.S. unemployment rate increased to 3.8% in August and the overall economy added 187,000 jobs.   INDUSTRY HIGHLIGHTS On a year-to-year basis, July* insurance industry employment saw job increases in reinsurance (up 4%), TPAs (up 2.9%), life/health (up 1.9%), agents/brokers (up 1.3%), and property and casualty (up 1.1%). Meanwhile, job decreases were seen in title (down 8.7%) and claims (down 2.9%). On a year-to-year basis, July* saw weekly wage increases in property and casualty (up 9.4%), title (up 9%), TPAs (up 6.9%), life/health (up 5%), agents/brokers (up 4.4%) and claims (up 0.2%). Meanwhile, wage decreases were seen in reinsurance (down 7.9%).      BLS Reported Adjustments: Adjusted employment numbers for July show the industry saw an increase of 9,800 jobs, compared to the previously reported increase of 8,300 jobs. The BLS continues to revise numbers to be most accurate, which may contribute to inconsistencies, depending on when reports were pulled. *The BLS Job Openings and Labor Turnover Survey 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 2023 Labor Market Study Results Infographic

The results of the third quarter iteration of the 2023 U.S. Insurance Labor Outlook Study are now available. The study, led by The Jacobson Group and Aon-Ward, examines insurance industry labor and hiring trends. View highlighted stats in our infographic.