The Insurance Talent Shortage And 4 Ways Employers Can Combat It

The insurance industry faces significant challenges due to its ageing workforce and the lack of interest among Millennials and Gen Z's. But as older professionals retire, attracting younger talent is crucial for the industry's sustainability and innovation.

Despite various opportunities in the sector:

• Only 7% of young people aged 16 to 18 in the UK see insurance as a viable career option (CII)

• 44% of Millennials do not find a career in insurance attractive (Valen Analytics)

• 80% of Millennials report having limited knowledge of the employment opportunities within insurance (The Institutes)

This is increasingly concerning since nearly 400,000 employees are expected to retire from the industry in the next few years according to data from the Bureau of Labor Statistics. Insurance companies will need to be intentional about attracting new talent to support the constant pressures and market changes of the industry which is now facing gaps.

Here are 4 practical ways employers can ensure they're attracting top talent:

INVEST IN GRADUATE SCHEMES AND APPRENTICESHIPS

One of the best strategies for addressing the talent shortage is to invest in graduate schemes and apprenticeship programs. Not only does this attract and interest students before they even start looking for a career, but it also provides stable opportunities for young professionals to get into the insurance industry. 

And as we know, this is something that may not have been available to them otherwise, or it is, but they'd have to start in a much more entry-level position. Not only can it make it less attractive, but it will also take longer for these employees to get to the level where they can fill crucial roles within the company. 

EMPHASIZE CAREER DEVELOPMENT AND TRAINING PROGRAM

Young professionals are eager to learn and grow in their careers and if they can't see room for development in insurance, they will go elsewhere.

There are plenty of innovative companies out there with:

• Great development opportunities

• Structured training programs

• Study support for qualifications

So if insurance employers want to stand out, they have to offer similar incentives and advertise those incentives from the jump.

And when you're thinking about retention, this is a key way to do it. Truly invest in the professional development of employees, and these employees will be far more inclined to stick around and progress in the company. 

PRIORITISE DIVERSITY AND INCLUSION

While progress has been made in advancing diversity and inclusion goals, challenges remain. Not only are we living in a more diverse world, but Millennials and Gen Z's are very passionate about it. 66% of Millennials and 75% of Gen Z consider diversity and inclusion pivotal factors in evaluating prospective employers. 

Particularly in achieving gender equality in leadership roles and salaries. Research indicates that women make up only 7% of cheif executives within the insurance industry (Insurance Times), highlighting the need for concerted efforts to foster gender diversity in leadership positions.

DON'T NEGLECT SOCIAL MEDIA AND BRANDING

More and more companies are realising the value of social media - not just for advertising and attracting customers - but for potential employees too. The reality is if you want to engage with younger demographics more effectively, you need to have a good online presence. 

Not to mention social media platforms, especially LinkedIn, have become essential tools for talent acquisition, with 87% of recruiters using it for recruiting purposes (CNBC). This works perfectly if you're aiming to attract the younger generation since 79% of Millennials in the UK use social media in their job searches (StandOut CV), indicating a shift away from traditional recruitment methods towards online platforms.

As a result, this means investing in enhancing employer branding and overall marketing is a great idea. These younger generations of professionals will have more of an eye for good branding than previous ones. 

- Written by Ben Pope

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