Finding the next generation of loss adjusters
As the battle for industry talent heats up, how can loss-adjusting businesses attract the next generation of leaders?
The battle for talent in loss adjusting is an age-old issue and one that continues to cause challenges for adjusting firms both in the U.S. and internationally.
Rarely a month goes by without seeing headlines of lateral hires, team moves or the need for our industry to plug the generational gap in talent.
So where should businesses focus their hiring efforts? How can adjusting businesses appeal to a more diverse, younger workforce? More broadly, how can the industry increase interest in and awareness of the adjusting profession in general?
This comes down to having a clear talent acquisition strategy, which requires a multifaceted approach, focusing on culture, sustainability, ethics and values; offering competitive benefits and working practices; and providing a pathway with regards to career progression and qualification. More broadly, the industry must increasingly focus beyond traditional talent pools, by building relationships with colleges and universities and partnering with industry professional organizations to foster greater awareness and interest.
A strategic approach
Lateral hiring, or the recruitment of established practitioners, is a well-trodden path that can be hugely effective, particularly when building out new practice areas or strengthening existing ones. Done well, it can boost growth quickly, but this strategy is not without its drawbacks. Such recruitment needs to be strategic, not opportunistic, with due diligence and integration being of key importance. If not, unsuccessful hires can risk wasting management time and leadership capital, as well as potentially negatively impacting both clients and other employees.
With this in mind, and notwithstanding the benefit that such hires can bring to an organization, the fostering of young, up-and-coming talent within an organization is an increasing focus of loss-adjusting firms.
Appealing to the next generation
Developing future talent is a challenge, with the “skills gap” a recurring topic in industry media and events. Mentorship, education and training are key factors here. Alongside professional development, this includes tapping into the wealth of experience that senior personnel can offer. Increasingly, this doesn’t just relate to loss adjusting or fee-earning roles. Marketing, data and technology, finance and HR professionals have a key role in the business of loss adjusting and supporting their professional development is crucial to our long-term success.
Workplace culture is also important. Company culture is the essence of an organization, often referring to its character and ethos. It is a key focus for any potential recruit, but arguably younger generations have become increasingly savvy about an organization’s culture and how it may impact their working lives.
An oft-cited piece of research from global analytics firm Gallup in 2018 asked Gen Z and millennials what they look for most in an employer finding employee wellbeing, ethical leadership, and diversity and inclusion to be key focus areas — all key aspects of an organization’s culture.
It’s important that loss-adjusting businesses have a strong employer value proposition (EVP) i.e. a clear understanding of their reasons for being, what makes them unique, what they want to be and how they behave. These aspects are often best defined by the mission, values, practices and brand narrative, yet it’s a mistake to assume that culture rests on the shoulders of HR and brand. In fact, it’s driven by many things, primarily leadership.
The new world of adjusting
This also feeds into aspects such as benefits and working practices. Not only do employment packages and benefits need to be competitive, but they should reflect the culture of the firm, particularly as post-pandemic working practices evolve into new forms of hybrid work and fully-remote work.
In a post-COVID world, many firms have adopted a flexible or hybrid approach to working, and this has now become a priority for prospective employees.
ESG considerations are also increasingly reflected in benefits. At McLarens, for example, we offer both an electric car scheme, and opportunities to become involved in corporate social responsibility initiatives.
At the same time, there is a strong link between the culture of a business and its ownership structure. For example, as an employee-owned, practitioner-led business, we believe that McLarens’ entrepreneurial culture derives from the sense of collective pride, ownership and accountability taken by our team.
An industry-wide approach
Misperceptions, or indeed a lack of awareness, about the loss-adjusting profession don’t help with recruitment of younger talent. For many years, loss adjusting has been viewed as one of the more traditional areas of the insurance market, a profession in need of modernization and disruption. Yet today loss adjusting is on a journey of reinvention, shifting to an ever more digital model (accelerated by the pandemic) and we will undoubtedly continue to see greater use of technology, including artificial intelligence in the collection of data collection and analytics.
The industry has embraced diversity and inclusivity. While there’s still work to be done, organizations such as the Chartered Institute of Loss Adjusters (CILA), a UK-based member organization, but one that represents loss adjusters practicing across the globe, have made great strides. The organization has undertaken various initiatives, including the formation of the Women in CILA group, which has been extremely successful in raising the profile of the profession and promoting the development of women. They’ve also focused on making qualifications more accessible. Such initiatives are hugely welcome.
More broadly, we as an industry have a responsibility to shout about the positive and varied work that we do. Insurance underpins everything in modern life, and loss-adjusting professionals play a key role in that process. Claims, as is often said, are the shop window of the insurance industry and, above all, loss adjusting is a people business where empathy and relationships are key to what we do. We need to fight hard to ensure our voice is heard in the media, politics and further afield, and work with member organizations, educators and others to make sure that up-and-coming talent considers ours as the worthy career that it is.
Sonya Tolson is the chief human resource officer at global insurance services provider McLarens. She has 20 years of experience and expertise in HR strategy, talent management, compliance, learning and development and culture enhancement. Her background includes work in start-ups, acquisitions, and fast-paced, high-growth technology, medical devices, BPO, professional and financial services, and non-profit organizations.
Opinions expressed here are the author’s own.
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