Survival Skills

During a soft market, when businesses often are struggling to survive, it hardly seems like the appropriate time to scrutinize staffing. Yet Paul Hering, managing principal and CEO for San Diego-based B&B Co. says opportunities are ripe to recruit top talent into his organization.

“Not unlike the stock market where the objective is to buy low and sell high, in our business when times are tough, good things can happen. … More people are looking right now than ever before,” Hering recently told Insurance Journal. “Any firm that can make it in challenging times will be well-positioned to truly prosper when the market turns and the economy strengthens.”

This strategy is hardly foolhardy, especially when you consider demographic trends that will be affecting all U.S. businesses in the next decade. By 2018, 64 million Baby Boomers are expected to retire, creating a rapid drain in companies’ labor pool, according to The Conference Board, a business research organization.

“Employers rely on the skills and experience of this skilled labor pool, and as the population ages and more people retire, many industries could face worker and skill shortages,” predicted Victor Nolan, risk and benefits manager for Clean Water Services. “The aging of American people will affect many aspects of our society, from the health care system to financial markets …”

The imminent retirement of the Boomer generation is of great concern to the Chartered Property Casualty Underwriter Society. In a recent CPCU survey, 66 percent said they expected an “experience gap” resulting from Boomer retirements and a shortfall in new talent joining the industry to be “very likely.” In fact, survey respondents called the lack of interest shown in the property/casualty insurance business by recent college graduates, as evidenced by declining enrollment in insurance courses, “ominous” for the industry.

How to counteract the experience gap?

CPCUs suggest more aggressive recruiting measures are needed, such as using internships and the extension of industry outreach efforts to high schools and even younger students as tools. Retiring professionals could be retained, at least temporarily, through flexible scheduling, mentoring and consulting opportunities. That would “keep accumulated knowledge and the experience of Boomers within the industry, as well as help train newer entrants,” the survey indicated. Additionally, the industry could offer more competitive compensation and benefits, as well as “develop well-defined, accelerated career paths that appeal to the best and brightest,” CPCU said.

“It’s become very clear that education of its employees will be critical to the success of the industry’s future,” said Betsey Brewer, 2006-2007 CPCU Society president and senior vice president and partner of The Rule Co.

So take a tip from B&B’s Hering: Starting today, focus on developing your current talent base for future leadership positions. Laying your foundation for staffing now will ensure your agency thrives — not just survives — in the future.

Topics Talent Training Development