Refining Recruitment Strategies

The Insurance Institute of Canada’s recently released report, A Demographic Analysis Part II -Recruitment and Retention Issues in the P&C Insurance Industry in Canada, concludes with this inescapable and significant fact: “In the next 10 years, a proactive, strategic approach to human resource management is essential for industry sustainability,” says Richard Loreto, president of RAL Consulting Inc. and research consultant to the Insurance Institute. “The current economic situation and the attitude that ‘We have always done it this way,’ are constraints that must be overcome.”

The first study, released in May 2008, was all about raising awareness (even a few alarm bells) about the Canadian labour force’s significant impact on the property and casualty insurance industry. For example, we learned that:

• The industry’s workforce is aging. In 2007, 49% of those working in the insurance industry were between the ages of 41 and 60. In the general labour force, the number is 45%.

• Industry employees tend to retire younger, by two to three years.

• Retirement projections will have a significant impact on the industry’s labour force: 25% of the 2007 labour force could retire between 2012 and 2017; in BC, the retirement projection is 38%; in Crown corporations, it’s 39%; and for the management category, 40% could retire by 2017.

“Now, in light of our current economic climate, some would suggest that these retirement projections may be wrong,” says Loreto. “But it is important to recognize that even if some mature workers delay retirement and the timeframe shifts a little, the projected numbers or proportion of workers eligible to retire stays the same and therefore the pending mass exodus and leadership gap is still looming.”

In anticipation of these departures, the industry needs to be recruiting more. As the research identifies, there are not enough entrants to replace those exiting the industry. Compared to the overall labour force and the minimal standard that there should be one person entering the work force for every worker who can retire, the industry’s entry-to-exit ratio is very low (0.4:1). Furthermore, it has been in a pattern of steady decline for some time.

Research suggests the targeted recruitment of youth, including immigrants/new Canadians and aboriginals, is critical in an aging work force. The research also tells us retention and succession planning around younger employees/recent entrants and mature workers is critical to the industry’s sustainability.

The findings of the Insurance Institute’s second research study follow up on a recommendation in the first report that there is a need for systematic industry-wide and company-specific workforce planning related to four cohorts -youth, immigrants, aboriginals and mature workers.

This second report has been compiled as a resource guide to help organizations create the strategies needed to meet a company’s hiring needs, training and development assessments and the potential leadership gaps.

“The most fundamental recommendation is that employers should develop a human resource management strategy that is comprehensive and research-based,” Loreto writes in the second report. “This resource provides those concerned about human capacity issues with a whole range of information — greater understanding of incentives and drivers, tools and checklists to reference and examples from other sectors — that will help in the development of the necessary multi-pronged approach for recruitment and retention.”

SAMPLE QUESTIONS FOR RECRUITERS

Shared “old School” values

If research suggests that those under 30, just like those in their 50s, are as concerned about salary, benefits, job security, opportunities for professional growth and advancement and working with respected colleagues, what impact might that have on your recruitment and retention strategies?

The question implies these “old school” values translate across all generations when it comes to work. As a result, the insurance industry may want to adopt a more competitive edge when it comes to these career aspects. In addition, co-op, internship, cross-training, coaching and mentorship programs between mature workers and students/ new recruits may serve multiple purposes.

Eliminating barriers

If research indicates that immigrants/new Canadians make up a significant part of our youth; that visible minorities have higher levels of education than non-visible minorities; that the most common field of study is business, management and public administration; that many people in visible minorities work in business, finance and administrative occupations; and that resources abound to assist employers with the recruitment and retention of recent immigrants, in addition to helping immigrants secure solid employment in a new or chosen field, then what affect might that have on your recruitment and retention strategies?

Referrals

If a majority of the industry’s employees is satisfied with their current jobs, and if that same majority is recruited into the industry by family and/or friends, then what impact might that have on your recruitment and retention strategies? At a minimum, it suggests that all employers review, augment and/or promote their referral bonus program.

Mature workers

Assuming there is a need to retain mature workers, and given that research shows three-quarters of survey respondents who intend to retire within the next five years say they would be interested in working post-retirement (mostly to earn additional income, especially on a part-time basis), then what impact might this have on recruitment and retention strategies? Companies might consider shifting from incentives for early retirement to incentives for phased retirement. Flexibility becomes the name of the game with mature workers in terms of where, how and for how long work is done, as well as flexibility in compensation plans designed to meet life cycle needs.

End of ‘laissez faire’ recruitment

If research shows that recruitment and retention tools currently in place do not meet the needs or offer the necessary incentives for current or future prospects, even though survey respondents perceive both targeted recruitment and retention tools as effective, what impact might that have on your recruitment and retention strategies? The survey results suggest an existing,’laissez-faire’ attitude towards emerging labour market issues, as well as the need for a systemic shift in the approach employers take to recruitment and retention.

The Insurance Institute of Canada’s research has already had a significant impact on Career Connections, the career awareness program coordinated by the Insurance Institute on behalf of the property and casualty industry. (See sidebar for more information). For employers, we anticipate the research studies provide employers with the impetus and information needed to develop and implement appropriate strategies to meet their future human resource requirements. For a copy of the research report, please visit www.insuranceinstitute. ca or call 1-866-362-8585.

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CAREER CONNECTIONS CHANGES DIRECTION

The Institute’s demographic research studies have already had a significant impact on Career Connections, the career awareness program coordinated by the Insurance Institute on behalf of the property and casualty industry. In response to the research, the programs’ next five-year strategic direction, to be launched in Fall 2009, includes an expanded outreach and audience mix.

The focus for the past five years has been to inform and educate 14-24 year olds (i. e. those in secondary and postsecondary schools) about insurance in general and the merits of an insurance career. But based on the identified need and discussion about the targeted cohorts in the research studies, Career Connections’ strategic direction will evolve our mes saging and our outreach to an expanded audience between the ages of 14-44, with an emphasis on engaging graduates and career-changers between the ages of 20 and 35 (which includes new Canadians/visible minorities).

Expanding our audiences to include career-changers means adopting a variety of new media strategies. Mainstream career media, e-marketing and social networking sites are included in the mix of vehicles we will use to reach an audience of recent graduates and those currently in the workplace and considering a career change.

Visit the Career Connections Web site at: www.career-connections.info to view the new videos and messaging that have been developed to promote the variety of careers in insurance to our expanded audiences.