Recruiting can be a tough, expensive activity, but there is some good news. The Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS) is reporting a steady 3.1% of monthly separation. Of that number 1.4% represent what is referred to as ‘quits’ – employees who are voluntarily leaving. That means that employees are staying, but you can expect the motivated staff to look around at other opportunities. Hiring these experienced employees can be expensive because they will almost certainly seek a salary increase.
Most carriers are still using older administration systems that are complex and hard to learn. Employees under 30 grew up with the Internet, and new hires out of college grew up with FaceBook and text messaging. Coming into a company using a 30-year-old administration system is analogous to dropping them into a foreign country: they cannot relate to the language and culture. This leads to difficulty recruiting and retaining employees. The average time to onboard an employee is 90 days, and the cost ranges from 100 – 150% of their starting salary. That’s a very expensive proposition; far more expensive than a system upgrade over a 5-year period.
Developing talent from the beginning of their careers and retaining them as they develop in their careers are ideal; these two keys foster loyalty, enforce culture, and support company image. As an employer, you also get to teach them to work the way you want them to work. That does not negate hiring outsiders or fostering innovative ideas. But, long-term employees care about where they work and the success of the company.
Finding young talent is easier than you might imagine. Several universities offer Risk Management and Insurance degrees within their business colleges. These students are exposed to the field of insurance through classroom study and learn the business before they enter the job market. A student with a degree in risk management and insurance can easily transition into an entry level position and quickly move up to more advanced positions much faster than most new hires without the same degree.
The burden is on your company to create an innovative operation that can attract employees and retain them. Ideally your current employees enjoy their jobs and the systems they work on so much that they become your front-line recruiters. To foster that culture, you need to have modern systems that automate the mundane and let the employees do the more complex and rewarding work. Sell yourselves and create an environment with a modern solution that creates an innovative culture.