Volume 7 Issue 2 April 2014

Pulse of the u.s. lAbor mArket

• The U.S. unemployment rate remained at 6.7 percent with the number of unemployed persons essentially unchanged since December.

• Unemployment for insurance carriers and related activities increased to 3.3 percent in March, despite the addition of 3,000 jobs.

• At approximately 2.413 million jobs, industry employment is up roughly 46,000 jobs compared to March 2013.

• The average 2013 industry unemployment rate was 3.7 percent. 2012’s average was 4.4 percent, 2011’s average was 5.9 percent and 2010’s average was 6.2 percent.

• On a year-to-year basis, insurance industry employment saw job growth in February* for all sectors, excluding claims (down 5.51 percent), life (down 0.59 percent) and title (down 1.32 percent): reinsurance, up 6.11 percent; TPAs, up 1.96 percent; health, up 3.75 percent; agents/brokers, up 2.71 percent; and property and casualty, up 1.81 percent.

• On a year-to-year basis, February* saw weekly wages increase for all sectors, excluding reinsurance (down 2.71 percent): TPAs, up 3.49 percent; title, up 8.73 percent; life/health, up 4.11 percent; agents/brokers, up 8.95 percent; claims, up 3.45 percent; and property and casualty, up 9.06 percent.

Derived from the data released by the U.S. Bureau of Labor Statistics*Data broken out by industry segment and category is available only for the prior month.

In thIs Issue

InDUSTry ExEcUTIvES On The MOve 2HAPPy EMPLOyEES, HAPPy BUSInESS: EngAgE yOUr WAy TO SUccESS

shAre thIs Issue of ComPAss!

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The Jacobson group is the leading global provider of insurance talent. For more than 40 years, we have been connecting insurance organizations with professionals from the board room to the back room on both a permanent and temporary basis. We offer a variety of solutions including executive search, professional recruiting, emerging talent, rPO, temporary staffing, subject matter experts, and onsite and work-at-home operations support. regardless of the need or situation, Jacobson is the insurance talent solution.

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Industry exeCutIVes

on the moVecongratulations and best of luck to the following executives who recently took on new challenges within the industry:

• stefani tygar barnes head of Personal Insurance Wells Fargo Insurance Services

• James r. boyle executive vice President andPresidentandChiefExecutiveOfficer, U.S. Life Insurance Division genworth Financial, Inc.

• edward l. dandridge ChiefCommunicationsOfficer Marsh & McLennan companies, Inc.

• david falgoust Senior vice President and Chief ethics and ComplianceOfficer crawford & company

• William W. fox, Jr. PresidentandChiefExecutiveOfficer Tower group International, Ltd.

• Patrick J. haveron President and executive vice President Maiden Insurance company, Ltd.

• rick Jones executive vice President and ChiefOperatingOfficer copperPoint Mutual Insurance company

• Christopher kay SeniorVicePresidentandChiefInnovationOfficer Humana Inc.

• Christopher leisz Senior vice President and Chief Underwriting

Officer,Specialty cnA Financial corporation

• Jeanmarie mcfadden Senior vice President and Chief CommunicationsOfficer MetLife, Inc.

• Al miralles President of Long-Term Care cnA Financial corporation

• keith mitchell President Union Standard Insurance group

• Joshua neuman ChiefInvestmentOfficer Ironshore Inc.

• Scott A. Orndorff PresidentandChiefExecutiveOfficer Millers Mutual group

• ron Pardo ChiefCasualtyOfficer,NorthAmerica xL group

• georgia Puls President Iowa Mutual Insurance company

• srinivas reddy head of Investments for Full Service Business Prudential Financial, Inc.

• James shea President of Global Financial Lines American International group, Inc.

• michael smith ChiefOperatingOfficer,CommercialInsurance American International group, Inc.

• robert thomas President,GlobalSpecialtyLines American International group, Inc.

• david l. thompson, Jr. DivisionalGroupPresident,SpecialtyPropertyand

CasualtyAgriBusiness®Division great American Insurance group

• Joseph A. tocco ChiefExecutiveofNorthAmerican PropertyandCasualty xL group

• roger s. Walleck ChiefUnderwritingOfficer Meadowbrook Insurance group, Inc.

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hAPPy emPloyees, hAPPy busIness: engAge your WAy to suCCessBy David E. coons, Senior vice President of The Jacobson group

the key to Any suCCessful busIness Is Its emPloyees. no ComPAny CAn flourIsh If Its emPloyees Are unhAPPy And unmotIVAted. the better IndIVIduAls feel At Work, the better they Are goIng to Perform. emPloyees Who feel VAlued, Are gIVen the oPPortunItIes to groW And deVeloP theIr tAlents, And belIeVe theIr Work Is meAnIngful And ImPortAnt Are more lIkely to be loyAl, engAged And hIgh-PerformIng.

given the current state of the insurance industry’s talent pool, engagement is an issue that cannot be overlooked. The industry is facing a “greying” of its current workforce and a shortage of incoming talent. nearly 50 percent of employees within the insurance industry are above the age of 45, according to the Bureau of Labor Statistics. compounded by the fact that nearly 62 percent of companies are planning on increasing their staff—according to The Jacobson group and Ward group’s recent iteration of the Semi-Annual Insurance Labor Market Study1—insurers face an increasingly challenging recruiting climate as these professionals retire and organizations work to rebuild their talent bench. The competition is fierce and insurers must step up their game in order to become an employer of choice. Engagement is key.

Despite awareness of employee engagement as a vital component of a successful workplace, a gallup survey2 reported that only 29 percent of current employees in the United States are actually engaged at work. As a result, companies face an increased risk of diminished job performance, a decrease in customer satisfaction, lower productivity,

absenteeism, damaged morale and lack of overall organizational support—all of which can negatively affect a company’s bottom line. These employees no longer love their work. They feel that they are undervalued, that their needs aren’t being met and that their company no longer cares for them as an individual or as a member of the organization. As their disengagement grows, so does the likelihood that they will be receptive to outside recruitment by organizations that have placed greater emphasis on their employees’ engagement.

Insurers that are serious about retaining top talent amidst the increasingly challenging hiring climate must implement an impactful engagement program that both considers their overall workforce strategy and incorporates what drives their employees. Employers who are focused on engagement today will gain a competitive advantage in the years ahead.

1Semi-Annual Insurance Labor Outlook Study conducted by The Jacobson group and Ward group, January 20142State of the global Workplace: Employee Engagement Insights for Business Leaders Worldwide (2013). gallup.com. retrieved April 14, 2014, from http://www.gallup.com/strategicconsulting/164735/state-global-workplace.aspx

limited to their relationships with management, but also with their coworkers. While it is important that you are not forgoing productive work time for water cooler chats, insurers should consider implementing company-wide social events to encourage camaraderie and engagement within the

workforce. Promote potlucks, after-work social hours and team-building activities such as a company sports team. Forming positive relationships within the workplace makes the work day more enjoyable and increases an employee’s job satisfaction.

A strong corporate citizenship program can also boost employee morale. Employees seek meaning in their work, not just in how it relates to the company as a whole, but in regards to their local community and society at large. When employees find their work to be fulfilling and

purposeful, they are more likely to be engaged and productive. company involvement in charitable programs and projects contributes to that purpose and lends employees the opportunity for a renewed pride in their employer.

offer CAreer deVeloPment oPPortunItIesEmployees who feel they are not being challenged to reach their full potential are more likely to feel disengaged from their work and are at an increased risk of turnover. In fact, the opportunity to utilize and expand skills and abilities at work ranks as the top contributor to job satisfaction, according to a report by the Society for Human resource Management3.

Employees seek the opportunity to improve their

Promote oPen CommunICAtIonThe relationship between an employee and company leadership is central to any individual’s engagement. The foundation of a successful relationship is effective and open communication. Better communication between employees, supervisors and management creates a sense of overall direction and increases employee morale and productivity.

Accessibility and an open line of communication allows supervisors to better understand their employees’ strengths and weaknesses, determine their preferred management style and foster a sense of security and support. While this communication can be as simple as meeting on a regular basis to check in and see how things are going, it offers an invaluable return on investment. In fact, the immediate supervisor relationship is often rated as more important to overall job satisfaction than compensation or benefits.

Open communication between senior management and employees has increased in importance as well. Sharing your organization’s overall business goals, policies and visions helps to provide direction and build trust and respect. Employees want to know how their efforts contribute towards achieving the goals and objectives of the organization. By better understanding how their roles impact the larger goal, employees feel better connected and more engaged.

lIVen uP the WorkPlACeconnecting employees to their workplace is not just

the ComPetItIon for toP tAlent Is

fIerCe And Insurers must steP uP theIr gAme In order to

beCome An emPloyer of ChoICe. engAgement

Is key. emPloyers Who Are foCused on engAgement

todAy WIll gAIn A ComPetItIVe

AdVAntAge In the yeArs AheAd.

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32012 Employee Job Satisfaction and Engagement: How Employees Are Dealing With Uncertainty. SHrM.com. retrieved April 14, 2014, from http://www.shrm.org/research/SurveyFindings/Articles/Documents/SHrM-Employee-Job-Satisfaction-Engagement.pdf

David e. Coons is senior vice president of The Jacobson Group,the leading global provider of talent totheinsuranceindustry.

To further discuss this topic or if we can serve as a thought leader in your talent-related endeavors,don’t hesitate to contact Dave at +1 (800) 466-1578 or dcoons@jacobsononline.com.

experienced and more junior employees.

emPoWer toP tAlentInsurance organizations must utilize their engagement endeavors to retain and invest in top performers who go above and beyond in their roles. recognize the accomplishments of your high achievers to ensure they know they are valued members of the team. Empower top performers by providing additional responsibilities, leadership opportunities and stretch assignments. not only will this maintain their engagement, it will help position them for future advancement opportunities within the organization.

companies should create an environment for success and encourage autonomy and independence. Granting increased freedom, discretion and flexibility when it comes to an employee’s work creates a sense of responsibility and ownership. Empowerment allows insurers to tap into their existing talent, increase motivation and productivity, and improve their chances of retaining A-list talent.

The factors that keep your workforce engaged are dynamic and require constant attention and diligence. Organizations committed to engagement must review and revise these programs as part of their continuous business planning. They must build a business environment that promotes job satisfaction and engagement that transcends compensation. Forward-thinking insurers will focus on how they can motivate, value and engage employees today to cultivate a culture of retention that will ultimately yield a competitive advantage tomorrow.

abilities, gain new skills and take on greater responsibility at work. career development opportunities including in-house skills trainings and lunch-and-learns, subsidized conferences and certification reimbursement are a great way to encourage employees to expand their expertise and exercise their skills. Insurers should implement a strategy for better understanding each employee’s career goals and objectives and determining development activities that can meet these goals on a personal level while driving the company’s objectives. Supporting individual developmental goals helps boost confidence and productivity, while ensuring that employees are able to perform their duties efficiently and enhance their current expertise.

Even with budget constraints, there are a number of low-cost opportunities to motivate and encourage employees. consider implementing a mentorship program or company-wide job shadowing. Promote knowledge sharing and networking between your

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