Having the right talent in place is key for any organization’s long-term success. Companies must not only hire capable and qualified individuals, but also keep them engaged and retained—all while navigating evolving challenges and shifting expectations. To maintain a high performing organization, it’s essential for companies within the medical professional liability (MPL) space to take an intentional approach to their talent management strategies.
There’s continued competition for talent as the insurance industry adds jobs amid a shrinking talent pool. Throughout the past few years, unemployment for the insurance industry has averaged around 2%, compared to roughly 4% for the overall US economy, according to the Bureau of Labor Statistics. Despite this low unemployment, 54% of property and casualty insurers are planning to add staff in the next 12 months. Outdated approaches are no longer feasible. To position yourself competitively in today’s environment, you must continually re-examine and refresh your recruiting and retention strategies.
Retaining Your Current Talent
In past generations, employees would often remain with one employer for a substantial amount of time—or even their entire careers. Today, many professionals move on after just a few years, feeling that something better is out there or that it’s their only option for advancement. In fact, the median tenure in the insurance industry is 4.9 years, down from six years just one decade ago, and a recent Gallup survey found 51% of employees have at least some intent to leave their current employer this year.
Your current talent is one of your greatest assets and keeping them engaged and loyal to your organization should be a top priority. This is especially true when it comes to your high performers. Research suggests these individuals are generally 400% more productive than average contributors and have the biggest impact on your company’s performance and culture. Not surprisingly, they’re also the ones who are most likely to be sought out by other companies. As you build your retention plans, be intentional about identifying these individuals and focusing on ways you can keep them engaged in their roles through these five strategies:
Strategy #1: Understand what is important to employees
Given the limited talent pool, it’s likely your employees are being approached with new opportunities, regardless of whether they’re actively looking. Be aware of what other companies may offer that your organization is not—be it advancement opportunities, higher compensation, or more flexible work environments. Ensure you’re having regular conversations to understand why your employees stay at your company and what could make them potentially leave. These “stay interviews” enable you to be aware of evolving expectations and make necessary adjustments before they start exploring other opportunities.
Strategy #2: Create a sense of connection
Even in virtual or hybrid environments, it’s possible to create a sense of connection among employees and their teammates. As a manager, be proactive about getting to know your people on a personal level, while also creating occasions for them to interact with others throughout the organization. Building authentic connections that extend past discussions around projects and deadlines can strengthen working relationships and establish trust. Especially for those you have identified as high performers or high potential individuals, make sure to also facilitate opportunities for them to build relationships with members of senior leadership—whether it’s a quick lunch, coffee meeting, or high-visibility project team.
Strategy #3: Be as flexible as possible
While return to office mandates are prominent in the headlines, we’re still seeing the majority of insurers continue to offer flexible work arrangements. More than three-quarters of property and casualty insurers offer hybrid schedules and just 6% require their teams to be in the office full time. Additionally, 85% report offering flexible work hours. While remote work was seen as more of a perk before the pandemic, it is now often a deciding factor in accepting a new role or staying with a current employer. Don’t assume a job must be performed in the office; if flexibility is a priority for your team members, consider how you can meet their needs while still achieving business objectives.
Strategy #4: Focus on development and growth
If your organization isn’t providing a clear and desirable picture of an individual’s future, it’s more likely they will buy into what another company has to offer. Start having career development conversations early in an individual’s tenure with your organization. Help create lucrative and personalized career paths, while offering the necessary advocacy and support throughout their journey. If an individual has proved themselves, don’t delay promotions and additional opportunities based on how long they’ve been with the organization. Tap into their energy and potential.
Strategy #5: Plan for future needs
As much of the industry reaches retirement age, developing current talent to be ready to take on vacant seats is vital. Have a solid plan for leadership development to help avoid potential knowledge gaps. Clear career plans and tangible next steps serve as a valuable retention tool, helping individuals visualize their futures with your company. Depending on your organization’s size and resources, you may also consider formal leadership training and mentorship initiatives to strengthen and broaden connections, while contributing to individuals’ overall career growth. Your employees have a wealth of knowledge to offer; ensure you’re creating outlets to help them realize their greatest potential within your company.
Recruiting New Talent
Even with the most comprehensive retention plans in place, there will be times when it is necessary to recruit from outside of your organization. As an industry, this has been an ongoing challenge—especially when it comes to bringing in individuals from outside the MPL community. Be intentional and open-minded in determining how to best reach and appeal to outside talent, providing the necessary support as they grow within their MPL careers with these five approaches:
Approach #1: Attract young talent
If you’re not already connecting with college and university programs, it’s time to get on campus. Take part in career fairs and explore how you can get involved with local schools’ insurance and finance programs. Offer to share your own professional career journey, as well as how you’ve built and grown your career within MPL. If possible, provide internship opportunities with your organization to get interested students involved even before they graduate. Often, young talent gravitates toward industries and companies they are familiar with, making early exposure essential.
Approach #2: Focus on transferable skills
While many MPL companies have traditionally focused their hiring efforts within MPL, there are individuals outside the space who possess many of the same transferable skills and attributes. This is especially true for roles like underwriting and claims, as well as any type of technology or automation roles. Determine if certain aspects of a position can be learned on the job and then open your search to focus on vital transferable skills regardless of industry experience. Also consider professionals who are early on in their property and casualty careers and can be developed into more senior-level MPL roles. This will expand your talent pool and give you access to additional qualified individuals who can make a great impact while growing and evolving along with your company and its shifting needs.
Approach #3: Provide a positive candidate experience
Although employers may have once had the upper hand, the hiring process is far from a one-way decision. Providing a positive candidate experience begins with an individual’s first interaction with your company through their onboarding. Understand how your organization is reflected within the larger employment marketplace, including your website, social media pages, current and past employee experiences, and more. During the recruiting process, treat candidates as you would a client, letting them know you’re excited they may potentially join your team and being responsive and communicative. As individuals move forward in the process, act quickly and commit to ongoing communication about timelines, expectations, and next steps.
Approach #4: Articulate what makes you unique
If you’re recruiting professionals from similar roles and asking someone to switch companies, what can you offer that’s compelling enough for them to entertain making a move? Many individuals are happy in their current positions and won’t consider a switch without a good reason. This could be increased flexibility in hours or work location, a bump in compensation, or stepping into a role that is considered a promotion or next career step. Additionally, depending on your department’s size and structure, there may be opportunities for them to have greater visibility and be more involved than is possible with their current company.
Approach #5: Offer flexibility
Strive to be as flexible as possible regarding work environments. Many professionals have no trouble turning down a role based on its in-office requirements, especially if relocation is involved. Anticipate any hurdles you may face and be creative in coming up with solutions that work for both you and the candidate. This could mean compromising on a hybrid schedule or allowing those who live farther away to fly in once a month.
Grow an Engaged and Capable Team
Take the time to understand what drives your current and future employees, be proactive in meeting these needs, and create a clear vision for an individual’s future with your company. By focusing on recruiting, developing, and retaining your employees, you’ll grow an engaged and capable team ready to contribute to future organizational success.