The insurance industry is currently facing a significant challenge – the skilled workforce shortage. Insurers are now confronted with an uphill battle as the demand for skilled professionals outweighs the available supply. Attracting and retaining top talent has become increasingly difficult in this fiercely competitive landscape. Shedding light on this issue, the Aviva Risk Insights Report highlights the challenges insurers face in securing and retaining skilled professionals.
Labelling the issue as the second biggest risk to UK companies, Aviva states that businesses of all sizes and sectors are grappling with labour and skills shortages, leading to a “race to the top” among UK companies. This trend is now adding to existing inflationary pressures:
- More than 25% of companies are raising wages either to attract or retain staff (31% for attracting, 25% for retaining), further impacting their already constrained bottom line.
- Around 13% have significantly enhanced employee benefits to attract new personnel.
- Approximately 63% of companies have struggled to attract new employees.
- About 64% have faced challenges with staff retention.
Understanding the complexities of the talent crunch and knowing how to offer effective solutions to help navigate this difficult time will be the key to building a resilient workforce and ultimately, coming out on top. We unveil four valuable tips to help insurers address this growing global issue.
- Talent Development and Training
One strategy for insurers to overcome the talent crunch is to focus on development and training in their existing workforce. By offering comprehensive training programs, professional development opportunities, and upskilling initiatives, insurers can nurture the skills and capabilities of their employees. This enhances employee satisfaction and retention and creates a pipeline of skilled professionals from within the organisation.
- Embracing Flexible Work Arrangements
In today’s workforce, flexibility is highly valued by employees. Insurers can attract and retain skilled professionals by offering flexible work arrangements such as remote work options, flexible hours, or compressed work weeks. These arrangements appeal to a broader talent pool and contribute to improved work-life balance and employee satisfaction.
- Leveraging Technology and Automation
Technology and automation can help insurers mitigate the impact of the talent crunch. By adopting advanced technologies, such as machine learning, and process automation, insurers can streamline processes, enhance operational efficiency, and reduce the burden on human resources. This enables insurers to optimise their workforce and focus on tasks requiring human expertise.
- Outsourcing for Success
Outsourcing provides numerous benefits for insurers seeking to address the talent crunch, ultimately alleviating this pressure in one. By partnering with Gallagher Bassett, insurers gain access to a qualified workforce with a deep understanding of the insurance industry. This helps insurers maintain a competitive edge and deliver exceptional service to policyholders. By outsourcing certain functions, insurers can access specialised expertise, increase operational efficiency, and alleviate pressure caused by the talent crunch. This key strategy also provides a unique opportunity for insurers to focus on their core competencies while leaving the non-core functions to GB’s experts. To explore these outsourcing solutions in more detail, visit “Your Dedicated Carrier Practice”.
Navigating the talent crunch requires a proactive and multi-faceted approach to address the skilled workforce shortage and build a resilient workforce. Our dedicated team is committed to supporting insurers in this journey, offering expertise and innovative solutions to help navigate the talent crunch effectively. To find out more, contact our team today and see how we can help you overcome this major challenge in today’s industry.