the new employment marketplace: myths and realities

The New Employment Marketplace: Myths and RealitiesPresented by Margaret Resce Milkint, Managing Partner

Changing EnvironmentRequires

Fresh Ideas, Change in Approach

A Changing Marketplace

Agenda

• Review the current state of the marketplace.

• Understand current hiring trends and strategies.

• Market your company in the current environment.

• Keep employees engaged and motivated during economic shifts.


Review the Current State of the Employment Marketplace

There are many talented insurance professionals available in the employment market.


In Reality…

As companies try to build staff back up, they are finding that the talent pool is not as plentiful as they thought.

-Jackie Greener, North American Practice Leader, Towers WatsonSource: Knowles, Francine. "Firms Rebuilding Talent Pipelines." Chicago Sun-Times 13 Sept. 2010.

“Companies have had to downsize and a lot of good talent has had to leave. There has definitely been a shrinkage of available talent for the pipeline because there’s a thinner and smaller talent pool.”


Current State of the Industry

• U.S. unemployment rate for August, 2010– 9.6 percent

• Unemployment rate for insurance carriers and related industries, as of August 2010 – 4.9 percent

Source: Bureau of Labor Statistics


Difficult Disciplines to Recruit

On a scale of 1-10 (10 being most difficult)

Actuarial 6.9

Executives 6.5

Technology 5.7

Underwriting 5.4

Product Management 5.3

Sales and Marketing 5.1

Compliance 4.8

Claims 4.7

Accounting 4.3

Source: The Jacobson Group and Ward Group 2010 Labor Outlook Survey


Industry Growth 2008 to 2018

According to the Bureau of Labor Statistics, the finance & insurance industry is expected to grow by 5 percent from 2008 to 2018.– Securities, commodity contracts, financial

investments & related activities expected growth: 12 percent

– Credit intermediation & related activities industry (banks) expected growth: 5 percent

– Insurance carriers & related activities expected growth: 3 percent


Industry Job Growth: 2008-18

Insurance industry labor market is expected to grow at 2.9 percent.

Source: Bureau of Labor Statistics

3.0

8.4

11.1

3.6

11

14.1

Total U.S. Employment

Claims

Computer Systems Analysts

Agents

Customer Service Representatives

Accountants


Expected Growth

61.4%19.7%

13.4%

5.5% 12‐Month Revenue Plan

Increase Revenue 61.4%

Flat Growth 19.7%

Decrease Revenue 13.4%

Don't Know 5.5%

39.4%

45.7%

15.0%

12‐Month Staffing Plan

Increase Staff 39.4%

Maintain Staff 45.7%

Decrease Staff 15.0%

Source: The Jacobson Group/Ward Group July 2010 Insurance Labor Market Study


12-Month Staffing Plans



Significant Trends

• High unemployment rate universally, yet lower unemployment rate for insurance/financial industry

• Lack of qualified/skilled candidates• Age of qualified talent pool/mass

retirement• Lack of interest in industry• Decrease in company loyalty• On-boarding/training



Significant Trends

• Company factors (reputation, stability, leadership)

• Location (cost of living, commute)• Compensation/benefits (flex schedules,

telecommuting options, career pathing/advancement)

• Work/life balance• Generational expectations



The New Marketplace

• Career security vs. job security

• No more job for life• Strategic

contribution vs. tactical production

• Required soft skills vs. hard skills

• Work life vs. personal life


Understand Current Hiring Trends and Strategies

As the economy strengthens, so does the confidence of hiring managers.


In Reality…

Overall, confidence in hiring managers is disturbingly low. (key finding, Towers Watson Global Workforce Study, 2010)


Top Hiring Trends

• Pursuit of passive job seekers• Hire for fit, train for skill• Formal employee retention and

engagement strategies• Reliance on recruiters• “Recruitment culture”• Hiring from within• Strategic succession and leadership

development planning


The Changing Career Market

• Career security vs. job security• No more job for life• Strategic contribution vs. tactical

production• Required soft skills vs. hard skills• Work life vs. personal life


Change Never Stops

• Cultural Issues• Business Issues• Societal Demands• Environment• Technology• Demographics


You Have a Need, Now Make a Plan!

• Keep up with the changing market by updating your hiring process.

• Think outside of the box.– Social networking– Referrals and warm introductions


Market Your Company

We don’t need to market our company to potential employees in this market. With a high unemployment rate, quality talent is easy to find.


In Reality…

Now more than ever employers must communicate their brand to potential employees to ensure a successful, lasting hire.


Employer Branding

• Attract the right fit.• Build brand advocates .• Potentially repel “non-fits” and lower

rate of bad hires.• Reduce time to fill positions.• Create greater internal engagement.


Creating Your Employer Brand

Employment Brand Market Strategy


Candidate’s Upper Hand

• Potential employees seek companies that provide values/opportunities that match their needs.

• Your company must be able to present itself as a desirable option.

• You must be more aggressive in positioning your company as an employer of choice.


Always Be Recruiting

• Use any and all candidate sources, including those previously untapped.

• Promote diversity; consider unique backgrounds and experiences.

• Be able to articulate your company culture and vision with passion at all times.

• Enlist your current successful employees to help get the word out.


Always Be Recruiting

• Consider rewards for employee referrals.

• Know your company perks and benefits.

• Advertise and promote your jobs with pizzazz!


Sell Your Company to Potential Employees• Your Website

– Know your site and where people go.– Partner with marketing and human

resources.

• Social Networking– Utilize Facebook, YouTube, Twitter,

and LinkedIn.– Have a plan and policy.


Keep Employees Engaged

Most of my employees are NOT actively seeking a new job.


In Reality…

While employers believe that only 37 percent of employees are actively or passively searching for a new job, 65 percent of employees are actually engaged in a job search.

Source: Towers Watson Global Workforce Study

“Competitive employers are thinking about a lot more than just pay. They’re thinking about all the things they can use to attract, motivate and retain.”

-Ryan Johnson, Vice President of Research, WorldatWork Source: Knowles, Francine. "Firms Rebuilding Talent Pipelines." Chicago Sun-Times 13 Sept. 2010.


Three Levels of Engagement

• Cognitive Engagement: employees focus very hard on work, are rarely distracted and think about very little else during the work day

• Emotional Engagement: employees are emotionally engaged with their work, put their hearts into their jobs and are excited when they perform well

• Physical Engagement: employees are willing to go the extra mile for their employer and stay until the job is completed, while exerting the energy to perform


Engagement Spectrum

ActivelyDisengaged

EngagedDisengaged

19% 54% 29%

Source: 2008 BlessingWhite Employee Engagement Report and 2003 Gallup Management Journal Study on Engagement


Critical Levels of Discontent

• 60 percent of employees intend to leave their jobs in 2010.

• One in four are networking and updating their resumes.

• Only 13 percent are not job searching and intend to stay.

• According to the Bureau of Labor Statistics, it costs one-third of an employee’s salary to replace him/her.

Source: Right Management 2009 Survey


How Does Employee Engagement Affect the Bottom Line?

• It is estimated that actively disengaged workers cost U.S. businesses approximately $300 billion per year.

• Organizations with engaged employees experience the following advantages:– Reduced turnover (-24%)– Higher business scorecard (+7%) – Higher customer satisfaction ratings (+2%)– Higher revenue growth (+10%)

Source: 2008 BlessingWhite Employee Engagement Report, 2003 Gallup Management Journal Study on Engagement, 2008 DecisionWise engagement survey


Create a Positive Work Environment• Provide honest feedback, early and often. • Offer variety in the position.• Bring human touch into the workplace.• Reinforce the right behaviors to get the right

results.• Show your appreciation at the time it is

deserved, not just at the holidays or quarter-end.– Gift certificates– Early starts to holidays/weekends– Paid days off


Empower Talent

• Develop your own. • Involve the employee in the development

process.• Understand each employee’s individual

career goals.• Create individual development plans for

each employee.• Define measurable objectives and goals.• Give the employee ownership of the

process.

“Change is the only constant.”

-Proverb


Questions & Answers

Thank You!

Contact:Margaret Resce Milkint

Managing PartnerThe Jacobson Group

(800) [email protected]

the new employment marketplace: myths and realities

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