Why insurers should look to tech to modernize company benefits

The COVID-19 pandemic taught us that we need to be prepared for big changes at any moment. Like most industries, insurance initially hurried to adopt new workplace options and benefits in step with the evolving needs of a workforce navigating unprecedented uncertainty and change. Two years later, we're beginning to see companies roll back some of the perks and policies they implemented in 2020. The Society of Human Resource Management surveyed 3,000 U.S. companies and found that paid maternity leave beyond what's legally required increased by 53% in 2020. The same survey found that the number had dropped to just 35% in 2022, reverting to pre-pandemic levels. However, the wants of the workforce are no longer in alignment with "the way it has always been." While the pandemic has begun to subside, employee expectations have permanently evolved. 

The insurance industry is historically traditional and slow to change. Companies that failed to adapt to evolving workplace expectations have lost employees in droves—many to industries eager to embrace a people-first mindset. As we navigate the "Great Reshuffle," people are evaluating their current workplace against everything being offered by other employers and industries. The talent pool is making moves and reshaping their careers to fit their lifestyle and priorities, creating one of the most competitive and agile recruiting markets the insurance space has ever seen. This year, the industry hit a record number of job openings. These don't just represent data points, they're the key players, creative minds, and top performers who support innovation and growth. 

So how can we think outside the box to retain and recruit entry-level and experienced talent for careers in a field that is both sustainable and rewarding? And where do we start? 

Looking to the tech industry for inspiration

The technology industry is an established pioneer when it comes to employee autonomy and ownership. Since the 1980's, companies like IBM have embraced telecommuting, citing that work productivity went up as people spent less time traveling to and from work. Recent data illustrates that the future of the workforce is flexible by way of autonomy. This provides people the freedom and responsibility to design and own their workday in a way that works best for them. Increased autonomy supports greater satisfaction, motivation, creativity, work-life balance, and trust. Companies may also see an improvement in their organization's culture and connection. 

Lead with guidance rather than rules

Rules infringe on autonomy. Companies win the employee experience when they figure out how to create a hybrid working environment that empowers both workplace connectivity and individual freedom. Implementing guidance—not rules—is the sweet spot for modernizing and making employees feel invested, seen, and valued. A true understanding of company culture policies, and procedures all support the employee experience ecosystem. Human resources executives in insurance need to focus on aligning the three to be proactive in retention and successfully improve company benefits. 

Recognize that people are not a trend

Fostering a people-first culture requires a long-term shift in mindset—and it starts by putting the 'human' back in 'human resources.' Many insurance companies rapidly adopted new policies and perks as a response to the pandemic in an effort to retain employees. However, prioritizing people should be a sustainable and ongoing effort, not a short-term fix to a problem. The tech industry has a long history of putting employees first in order to recruit and retain top talent. For example, Amazon's Leave Share program allows staff to share up to six of their 20 paid leave weeks with a partner whose employer doesn't offer paid parental leave. Adobe offers up to 20 days of backup care for the children and senior family members of employees through Bright Horizons.

Best practices in action 

The improvements we implemented at Central Insurance over the past few years were not prompted by the pandemic; they were the result of a sincere desire to do more for our people. We asked big questions, listened to our employees, and acted on the feedback we received. We researched best practices in tech, then used that inspiration to design policies and benefits for our industry. By reflecting on the milestones people navigate over the course of a lifetime and career, we developed benefits to best support them throughout those moments. This intention has become our guiding light for all HR decision-making. Meeting the needs of our people isn't a final destination, it's a bar we're continually raising. 

Moving the industry in the right direction

Insurance is at an important fork in the road. Traditional insurance companies are beginning to play tug-of-war with digital players eager to adapt to new employee expectations at a rapid pace. According to the latest Vertafore survey of more than 1,300 independent agents and MGAs, nearly half of respondents considered leaving the insurance industry in favor of greater compensation, a better work-life balance, and career advancement. Taking a page from the tech industry's playbook can help modernize and move insurance companies in the right direction. We also must change the stigma about working in the business. Insurance is a stable, relatively recession-proof industry. If we can combine economic stability with a modern employee experience, we set the stage for happy, engaged, talented employees excited to help build the future of the industry while redefining what it means to work in insurance.