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Want to lose your job? Insist on remaining in a remote work environment. That's the message a number of large U.S. companies are sending to their workers as corporations deliver their return-to-office mandates. The directives are coming from unexpected sources, too; notably, Zoom, a company that built its business on providing remote video conferencing, is now requiring employees who live within 50 miles of an office to work in person at least twice a week.
It's a scene that is repeating across the country as news of a softening labor market hits the ears of decision-makers. Giant e-tailer Amazon first announced it was ending remote work for its employees on May 1st, then sent word to remaining remote workers that if they were unhappy with three days in-office "it's probably not going to work out for you." Other corporations, such as Meta, JPMorgan Chase and Goldman Sachs have ended remote work, though some still offer hybrid options.
Still, while the labor market appeared to be softening earlier this year, that trend may be reversing. BLS data show jobless claims – a proxy for the labor supply — at the start of September were at an eight-month low of 216,000. This may explain why the insurance sector, including brokers, is still struggling with a worker shortage. Job openings for the month of July 2023 stood at 399,000, an increase of 100,000 openings since June 2023, according to BLS data. Wholesale trade agents and brokers make up 15% of the industry's employment, says data provided by the Insurance Information Institute.
The talent gap comes at a time when the insurance industry is looking to bolster its workforce. For example, an estimated 63% of carriers intend to increase staff over the next 12 months, says the Semi-Annual Insurance Labor Market Study conducted by The Jacobson Group. The study also found that all of the roles they will be hiring for are deemed at least moderately difficult to fill due to the specialized skills needed, such as technology, claims, and underwriting.
With a growing dearth of employees to fill key positions in the insurance industry, full return-to-office mandates are likely to meet some resistance. Workers want options. That's where the broker community can win the talent war. By offering flexible work arrangements, the industry can widen its talent search (workers don't have to be in the same geographic area) and attract workers at all skill levels.
Embracing flexibility
It's not a hard war to win if you're paying attention. Statistics show that flexible work options are helping companies attract and retain job seekers. A study by Scoop Technologies shows that companies offering flexibility – having autonomy to choose – were able to grow their employee base by an average of 1.9%. Likewise, those companies with structured hybrid work environments saw a workforce growth rate of 1.5%. Those requiring fully in-office work grew headcount by 0.8%.
That isn't likely to change. The Work & Financial Wellness Report conducted by Remote.co shows that offering remote work options matters to job seekers. A surprising 84% of professionals surveyed say that they evaluate job opportunities based on flexible work options, the top criteria cited by survey respondents. Salary came in second and work-life balance a close third. Corporate America seems to have gotten the memo, with 83% of companies surveyed planning to put flexible work policies in place and allowing more work-from-home options, according to a Mercer report.
Implementing (and advising)
That's how the broker community can attract and retain key industry talent. It starts with building a framework to support the hybrid work model. As a fully remote company, we at WAHVE have established a framework for hiring, onboarding, and working successfully with our remote workers. We recommend the following focus areas:
Communication
By far the most critical factor to managing a hybrid workforce is facilitating effective communication. Building strong teams with flexible work arrangements means putting employee communication as an everyday priority. Opt for video calls and conferencing so that both in-house and remote team members can connect daily. Make sure you have chat programs that allow for instant access to managers and other employees. Encourage open, frequent communication and ensure that all employees have ready access to each other. Most importantly, check in daily with each employee.
Ramped-up mentoring
For newer employees or those new to the insurance realm, a mentor should be assigned to help with on-the-job guidance. Mentors should be available to the new hire via chat, email, or video calls. Give your current employees a template that helps them to mentor a new hire.
Stronger team dynamics
Group meetings should be a regular, weekly occurrence. However, they need to be focused and avoid topics that trail off into unrelated discussions. Weekly team meetings should relate what's happening in the organization and how each person's job fits within the overall company goals. Make sure that when an issue is brought up that responsibility for finding solutions is assigned and that there is follow-up until the issue is resolved.
Intentional bonding
Nothing makes employees feel connected to their companies like active communication with and from the company. Communicate company updates regularly. Celebrate new hires, retirements, birthdays, and milestones. Likewise, share a team member's success at achieving a goal or delivering results. Make your employees feel seen.
Tighter cybersecurity
Now is the time to revamp cybersecurity policies and increase security. Companies should be making sure that their employees are trained in how to recognize threats. A strong cyber policy includes:
- Login and strong passwords that are changed regularly and must be entered manually to access company servers
- Secure wireless connections or virtual private network (VPN) when employees are working in public places
- Operating system and software updates that are set to automatically update regularly
- Antivirus software that is regularly updated
- Limited access to company files and systems – only those who need to access them should be able to
- Easy-to-understand policies and a process that regularly communicates these policies and any updates to employees
- Frequent training and refreshers on cybersecurity, including how to recognize phishing, what devices can/cannot be used for work, and what the cybersecurity policies are and where to report threats or breaches
Productivity strategies
Help hybrid and remote employees stay on track by working with them to set goals, talk about productivity issues and challenges, and delve into outside issues that may be impacting their work, such as financial or family pressures. Create a shared folder that details these goals. Have employees use the folder to check progress, report on benchmarks, or share anything that may be hampering or helping meet those goals.
Frequent feedback loop
Make it easy for employees to give the organization feedback. Listen. Build time into meetings for employees to share concerns and suggestions. Act on those suggestions. Assign someone to look into and report back on each point raised. Set up an online suggestion box that gives employees the chance to reach out with concerns and suggestions at any time.
Knowing how the business must change in order to attract job seekers is essential. Solving the labor market shortage requires adapting to the needs of the workforce. It also means looking outside traditional talent pools.
Adopting a hybrid work model means your organization can transform the workplace in a way that attracts and helps retain talent. In an atmosphere of worker shortages, that's an advantage any brokerage can embrace.
Sharon Emek, Ph.D., CIC, is founder and CEO of Wahve (www.wahve.com). Wahve is a talent solution provider to the insurance industry.
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