Sectors throughout the Canadian economy are anticipating a talent shortage as baby boomers prepare to retire, but the insurance industry is already feeling this shortage particularly acutely, according to DGA Careers, a recruiting company specializing in the insurance sector.
This is partly because the industry has a median age of 41 — a higher share of the baby boomer demographic than the rest of the workforce.
“The demographics that are hitting all industries right now are a little more extreme for the property and casualty insurance industry and the life insurance industry,” said DGA Careers president Gerald Legrove.
Specifically, one-third of the broker and adjustor community could retire in the next 10 years, according to consultant Lorie Guthrie Phair of LePhair Associates, and that percentage is even higher at the management level.
In addition, the insurance industry is facing growing challenges in finding candidates with specialized knowledge in such insurance industry aspects as underwriting and claims, Legrove said.
“The specific skill sets that they’re looking for are becoming harder and harder to find,” said Legrove.
The supply of new graduates and qualified candidates is simply not keeping up with demand, said Donald Givelos, founder of DGA Careers and Insurance Works.
“The recruiting pyramid has been flipped upside down,” he said. “Years ago there were 10 candidates for one open position; today there is only one or two good candidates for 10 positions.”
Certain forward-thinking companies are already making efforts to prepare for the looming talent shortage, and those who aren’t risk getting left behind, said Legrove.
In taking a proactive approach to the human resource challenges, companies are advised to create a strong HR brand to attract new and qualified talent. “It’s important to understand what your brand is in the marketplace for potential workers,” said Legrove.
In addition, DGA Careers recommends that companies foster stronger retention policies and incentives for staying, beyond salary alone, and develop a continuous formalized recruitment process.
Specifically, a number of new technologically advanced methods of recruiting are becoming increasingly popular. Online job fairs, for instance, let employers use multimedia to reach a wide range of potential candidates with information about job opportunities within the company, the corporate culture, and the benefits of the workplace.
“Mid-sized and larger companies are taking the initiative and using the best of modern technology to control their own destiny and build the workforce that they need to compete,” said Legrove.