Insurers Face Challenges With Acquiring Talent In 2022

By David Levenson

COVID-19 upended much of our lives over the past two years. The pandemic has prompted people to reexamine their priorities and needs at home and at work. One of the consequences has been the “Great Resignation,” with more than 20 million Americans quitting their jobs last year between June and October, according to the Bureau of Labor Statistics. This number includes nearly a half-million workers in the finance and insurance sectors. Along with other changes brought on by the pandemic, this trend has made it much more challenging to not only entice employees to an organization but also keep them once they join.

Hybrid Is Here To Stay

One of the most significant changes brought on by COVID-19 is the shift to remote and hybrid work. This is not likely to change as the pandemic fades. According to a recent study by LIMRA and EY, six in 10 U.S. employers say a substantial proportion of their company’s workers will continue to work remotely at least some of the time in an effort to attract and retain skilled employees. This is also true in the life insurance industry. A separate LIMRA survey finds half of life insurers say at least 20% of their workforce will remain full-time remote following the pandemic. And, most companies have implemented hybrid work schedules for the majority of employees.

Beyond the logistical and technological challenges of a hybrid workforce, our research also uncovered that this transformation will impact company culture and how companies get work done. Companies will need to train their leaders on new and different ways to support employees and leverage technologies in order to create the greatest efficiencies and engagement.

As Talent Needs Shift, Talent Strategies Must Change

Pre-pandemic, the life insurance industry was already grappling with a need to innovate digitally. Two-thirds of life insurance executives surveyed said embracing digital innovation would be most important to the future of work in the industry. To accomplish this, insurers will need to get new types of workers — including data analysts, actuaries and technology professionals. Insurers also will need to up-skill and re-skill current employees to capitalize on the capacity made available by the elimination of manual processes.

This year, as companies compete for employees, it will be critical that they leverage the new freedom remote work allows to source the very best and most diverse talent, regardless of geographic location. Even for local employees, flexibility will be more important as there is greater demand to work from home. If your company doesn’t offer flexible work schedules, many workers will seek employment with companies that do.

Beyond flexibility, employees are demanding more. Compensation is clearly rising, but workplace benefits — especially nonmedical benefits — also will play a key factor in attracting and retaining talent. A recent LIMRA study finds three-quarters of employers (76%) believe their workers will demand a wider variety of benefits options in the future, and seven in 10 midsize and large companies expect to offer a greater number of benefits over the next five years.

Planning For The Future

The team at LIMRA and LOMA understands that our member companies’ success is highly dependent on the capabilities of their talent. In 2022, we will launch an industrywide initiative to examine the many factors contributing to the talent disruption affecting our industry; identify the strategies that have been most successful in recruiting and retaining key talent; and provide actionable insights that will empower companies to lure the talent needed to be successful. We look forward to sharing the results with all of you.