The vital role of training and development in the surety industry

Effectively managing the challenges of hiring, retention and employee training throughout the surety industry has become a high priority.

The recent “State of the Surety Industry” survey, conducted by the National Association of Surety Bond Producers (NASBP), highlighted the industry’s desire to strike a balance between business staffing needs and employee development. Nearly 80% of those surveyed said recruiting, training and retaining a new generation of underwriters will be the primary challenge and opportunity for surety companies in the years to come.

Meeting diverse professional needs and attracting new talent

For professionals entering the surety industry from other sectors, educational training is indispensable. Surety is unique with regulations and specialized practices, making tailored education opportunities essential for a smooth transition. Specialized training ensures that newcomers can swiftly adapt to the industry’s specific demands, minimizing the learning curve and quickly enhancing their contributions.

As surety organizations seek to attract younger generations of professionals, comprehensive training programs offer a dual advantage. They not only equip professionals with the skills and understanding required for success but also nurture their confidence and competence. This targeted training will help cultivate the next generation of underwriters, ensuring they feel empowered with the tools and knowledge to succeed within our industry.

Benefits of employee training

The importance of employee training is well-established. It directly impacts an organization’s productivity and performance. Educational opportunities provide professionals with a common understanding of their roles, imparting the knowledge and skills necessary to succeed. This not only enhances job performance but also boosts confidence.

According to HR Magazine, companies that invest $1,500 or more per year on training each employee typically enjoy profit margins that are 24% higher than those with minimal or no investment in employee training. While it’s important to consider the financial benefits of investing in your workforce, there also are a number of low-cost or free surety training programs available.

Training opportunities

The surety industry is fortunate in that there are a wealth of specialized training opportunities available to support our growing workforce. At Tinubu, for instance, we recently deployed a six-week online curriculum with FIA Surety. The program focused on critical business areas including:

• Surety Bonds 101
• Commercial and Miscellaneous Surety Bonds
• Performance and Payment Bonds
• Understanding Financial Statements
• WIP Schedules
• Bonding Solutions and Advanced Financial Statements

We’ve also benefited from NASBP’s generous course offerings. They have a variety of continuing education programs, available both online or in person to surety professionals through its “Surety School” program. There are courses available on different topics like ethics, contracts, construction, and more. Some are in-depth for those who need a comprehensive educational program while others build upon prior learnings with continuing education.

The versatility of both online and in-person learning are helpful when it comes to a dispersed workforce. In the NASBP State of the Industry survey, 42% of respondents highlighted fostering knowledge transfer among staff in a hybrid or remote work environment as a top challenge for surety companies. Many surety firms are responding to this issue by expanding trainee programs, which were perceived to have lagged in recent years. By connecting surety professionals with online or in-person learning opportunities, they’ll have access to supportive tools whether they work in-person, remotely, or in a hybrid environment.

Comprehensive employee development programs are instrumental in maintaining engagement, nurturing internal talent pipelines, and retaining top-tier professionals. By investing in employee development, our industry can signal a strong commitment to individual growth and professional advancement. This not only attracts high-quality candidates but also fosters a culture of continuous improvement, where employees are encouraged to seek growth opportunities within any organization.

Continuing education and training opportunities in surety will lay the groundwork for an informed, talented and engaged workforce for decades to come. By refining recruitment and retention strategies to support the next wave of underwriters, the industry is gearing up for a promising future. This commitment sends a powerful message to current and prospective talent, assuring them that their growth and success remain central to the industry’s mission.

Bryce Christensen is the vice president of Surety Sales, Americas for Tinubu, a global software company providing an end-to-end platform for insurers, brokers, agents and their customers.

These opinions are the author’s own.

Also by Bryce Christensen: A digitized future for surety: Efficiency, accuracy and trust