Is the talent pool drying up?

Recruitment expert Stuart McKenna of HRC Recruitment explores the dearth of account handlers available to brokers.

It’s not too often you find an entire market, filled with competing companies, chasing the same thing. But that’s what is happening in insurance. 

Since the turn of the year, we’ve had more than a dozen insurance brokers come to us looking for the same person. And, in a significant twist of events, that person doesn’t seem to exist - account handlers.

Of course, that’s not true: they are out there somewhere in the insurance world. But this curious case demonstrates one of the industry’s greatest challenges in microcosm: attracting and retaining talent.

Shortage
Research report after research report supports this claim.

Last year, the Chartered Insurance Institute (CII) said 81% of brokers have reported a shortage of technical skills in their business, up from 59% two years prior.

What’s more, PwC’s 2016 CEO Survey found that 70% of insurance CEOs saw skills shortages as a threat to growth.

Meanwhile, a 2015 poll for Deloitte’s Talent in Insurance report found that just 0.5% of the votes cast by business students for their most popular employers were for insurers. 

We began to see that manifest in 2017, with mid-tier candidates at a serious premium. But, a year on, it’s become even more acute – especially among a particular grade of professionals.

On the back of growth in the commercial insurance market, brokers are voraciously searching for experienced account handlers: a commercial account handler with three years’ experience is like manna from heaven for the industry.

Move
In the current market, someone with that profile could have their pick of jobs. Yet, none appear to want to move.

It can partially be put down to indifference. But, while it might seem like it’s not worth the effort to move for a similar job at another company, sometimes the grass is indeed greener.

In the face of growing competition, broking firms are switching on to offering defined career paths for people joining their business, which can mean a huge incentive to making a move.

There are two sides to the story, though. There’s a popular notion in business circles these days that all staff should come pre-trained, matching all the criteria, ready to hit the ground running.

Historically speaking, it’s a relatively new attitude.

Potential
It’s time for insurers and brokers to re-evaluate that position. There are plenty of talented individuals working in personal lines, claims handling or contact centre sales that are patently capable and could take up the mantle with a few months’ training and support.

It’s worth companies taking a look at people who might not exactly match their standards, but who have stacks of potential.

A national shortage of account handlers may not be the end of the world – but it’s currently a real challenge for the insurance industry.

Overcoming it will require a shift in mindset on two fronts: people’s expectations and companies’ rigidity on recruitment.

If that does happen, it could reverberate throughout the industry, and help insurance tackle its much wider issue with talent.

Stuart McKenna is principal consultant, general insurance, at HRC Recruitment