TOP TALENT IN A DWINDLING WORKFORCE

As insurance professionals age out of the industry and enter retirement, agency leaders need to focus on employee training and company culture if they hope to preserve institutional knowledge and attract newer generations. Those that fail to do so may be shocked to find it’s increasingly difficult to replace their shrinking share of the workforce. 

According to a recent article in USA Today, the share of workers over the age of 55 in the insurance industry is more than 26%, making it among industries that will be the hardest hit by the retiring workforce in coming years. In fact, the American Property Casualty Insurance Association predicts the industry could lose as many as 400,000 employees through 2026. 

That’s a lot of retirees!

When you combine the aging population of the industry with the lack of interest in insurance by younger candidates, you’ll see that we have a true talent crisis emerging. 

Accordingly, the industry is realizing knowledge gaps that are hard to fill. Nearly half (43%) of insurance talent employees surveyed by Deloitte say it’s getting more difficult to find skilled candidates in a number of functional areas within the insurance sector. 

What’s an agency to do?

Despite the bleak forecasts, there is talent out there if you know where and how to look, and if you are willing to begin tackling this challenge today. Just keep in mind that you may first have to adjust your approach to accessing, engaging and developing talent. What worked in the past may not help your agency succeed in the future. 

That’s why it’s vital to implement a multi-faceted 

succession plan that involves senior executives as well as younger employees. A well-crafted succession plan should focus on:

• Encouraging experienced professionals to share their knowledge with their less experienced counterparts
• Embracing and fully utilizing the latest technology
• Customizing a transition plan for each retiring book of business
• Creating a company culture that attracts younger generations. 

Company culture

At Sitkins, we define company culture as the language and behaviors that are normal in your agency today. If the walls in your agency could talk, what would they say? What are employees talking about? What are they spending their time on? Is change welcomed and introduced enthusiastically? Is there a general message of abundance in communication or is the tone one of scarcity and negativity? 

It’s up to an agency leadership team to set the stage for a culture of teamwork and collaboration within the organization. This requires having a business plan and a team that is aligned with its goals. New candidates in the job market are looking to spend time in an organization where the atmosphere is positive, where teamwork and collaboration exist, and where they clearly understand the company goals and how they fit in. 

Does your executive team have a plan? Do you agree on your strategy as an agency? Can each team member articulate your three-year goals? If you can’t answer “yes” to every question, it’s time to roll up your sleeves and build a plan. 

It’s considered a best practice to find an outside resource who can provide a template for your executive team and even walk you through the process of completing it. In doing so, you will have an objective guide that will allow for perspectives from all departments to be shared, including sales, operations, IT, HR, and finance.

Training

Not only is employee training incredibly important to an agency’s success, it’s also one of the top three benefits sought by today’s job applicants. That’s why I am always surprised when I speak to so many agency leaders who assume they have the expertise to train their sales, service, and leadership teams in-house and choose to not work with a professional, outside training organization. 

Usually, I am engaged in these conversations after the leaders have become frustrated with the lack of results from their internal teams and aren’t sure what to do to improve. 

Most people in our industry move into a leadership role not because they received formal management training, but because they were good in sales. However, just because someone was a top producer does not mean they are a great coach and trainer. 

I have found that, typically, there is little correlation between succeeding in sales and being an excellent trainer. For that reason, I encourage you to research professional training firms and consider working with one. Be sure to find one that complements your company culture and conveys what your team—and agency leaders—can accomplish with the right training.

Shared experience

As you look to fill roles as employees age out, don’t forget to involve your senior team members. They can be an invaluable resource to new employees by sharing their stories, providing lists of their professional contacts and offering tips on succeeding in the business. Extract all the institutional knowledge you can before it walks out the door with them when they leave. 

You can also do this by asking them to speak on technical topics at sales and operations meetings. Another way they can help new team members is to fill out an exit questionnaire. Examples of questions to ask include: 

• What do you wish you had known when you were starting out? 
• What information might have helped you midway through your career?
• What was the best advice you ever received from a client? A colleague? 
• What is the one habit or behavior that helped you succeed? 
• Which habits or behaviors should team members avoid at all costs? 

The insights of senior team members are incredibly valuable to up-and-comers. The more we involve them in training the next wave of employees, the more we create a culture of sharing, collaboration and respect that will endure for generations to come. 

A parting thought

I have one final tip for attracting the best new hires: Spread the word about how great this industry is every chance you get! With the right mindset, any team member who is passionate about the insurance industry can recruit the kind of talent that will help your agency thrive. 

If you’re still not sure where to start, contact me directly. Let’s chat. We can provide a no-obligation agency assessment that will help you determine where you are today, as well as a plan for how you can improve in all areas of your agency. 

With our expert guidance, you’ll be able to escape existing frustrations, experience the agency growth and valuation you desire, and ultimately enjoy the freedom of your success.

The author

Kari Glennon, a sales and marketing professional within the insurance industry with nearly 25 years of experience, is a senior consultant at Sitkins Group, Inc. The majority of those years were spent in the independent agency world. She has been an owner and partner of a firm, perpetuated her firm externally, and spent time as the chief sales officer for one of the largest middle-market insurance agencies in the nation.

Her true passion is to deliver strategy, inspiration, insurance knowledge, and coaching for independent insurance agencies. She is fluent in property and casualty, employee benefits, life insurance, and captives.

Kari lives in the Pacific Northwest. In her free time, she enjoys traveling, sailing in the Puget Sound, nature walks with her dogs and spending time with her three children.