Each year, Vertafore surveys our agency customers to uncover the latest trends and challenges facing the independent insurance workforce. Our 2024 report—out later this month—highlights that insurance professionals love the work they do. At the same time, our industry is still struggling to attract new talent and filling open roles. In fact, 40% of our survey takers who are involved in hiring said they struggle to find enough candidates, while more than half said that they frequently face underqualified candidates.
But keep this in mind: in 2023 one third of our survey respondents said they came into insurance after working in another industry.
The takeaway for agencies, carriers, and MGAs looking for new talent? There are opportunities to recruit experienced, talented workers looking for a change. The key to finding this talent lies in reimagining the hiring process to spot great candidates with valuable, transferable skills that transcend the experience section of the resume.
Rethinking what qualifications look like
This approach (known as skills-based hiring) looks at a candidate's abilities and competencies—what they can deliver and contribute—rather than focusing on specific past titles and years of experience. Here’s how these differences might show up in a job posting for an insurance claims adjuster, for example:
Traditional job posting
We seek an experienced Insurance Claims Adjuster to join our team. The ideal candidate will have a strong background in processing insurance claims.
Qualifications:
- Bachelor’s degree in Business, Finance, or a related field.
- Minimum of 5 years of experience as a Claims Adjuster.
- Proficient in MS Office, especially Excel.
- Strong analytical and negotiation skills.
- Excellent communication and interpersonal skills.
- Knowledge of insurance policies and regulations.
Skills-based job posting
We're looking for a detail-oriented Insurance Claims Adjuster with strong analytical and problem-solving skills. This role assesses insurance claims, determines their validity, and ensures fair settlements.
Required skills:
- Analytical thinking: Able to assess complex information and make sound judgments.
- Attention to detail: Focus on accuracy and thoroughness in investigations and reports.
- Communication: Excellent verbal and written communication for interacting with clients and preparing reports.
- Negotiation: Proven ability to negotiate settlements effectively.
- Customer service orientation: Ability to handle clients with empathy and professionalism.
The first posting focuses on “what” happens in the role and emphasizes general credentials—like a degree in a particular discipline—and career timelines. This focus may pass over a great, skilled applicant simply because there isn’t a simple, direct line from their past experiences and titles. In comparison, the skills-based example emphasizes “how” candidates should be able to execute, along with expectations for quality and outcomes.
Skills-based hiring can be especially effective for industries and roles that require stellar soft skills—like insurance. Think about what makes an agency’s top performers stand out. Sure, they bring great knowledge to the table. But chances are their success is also about how they respond to clients, how they chase leads, and how they work with others. These qualities are more likely to shine through in a skills-based hiring process that uses tools like practical evaluations, behavioral interviewing, role-playing exercises, and assessments.
Getting started with skills-based hiring
Skills-based hiring encourages organizations to reframe roles as a collection of abilities and desired outcomes, rather than as a title defined by set functions or tasks. In this approach, organizations are freed to think about their goals holistically and to seek out people with the skills to achieve those goals.
It helps to think critically about what is and is not trainable in a role. For example, it may be easier and faster for a candidate to fill a knowledge gap on a line of business or learn how to navigate through a different technology platform than it is to teach someone how to problem solve or how to communicate effectively with clients. Here’s an overview for getting started:
- Identify core skills: Determine the key competencies required for each role. Create a detailed skill profile for each position.
- Update job descriptions: Highlight the necessary skills rather than focusing solely on years of experience or educational qualifications.
- Effective selection: Use behavioral-based interview questions to accurately identify if the candidate has the skills needed to perform the job. Consider if an assessment tool might help with this as well.
- Training: Provide training to hiring managers and others involved in the hiring process on how to assess skills effectively and recognize potential in candidates from diverse backgrounds.
What’s in it for organizations?
The most obvious benefit to skills-based hiring is that it can broaden the talent pool to include applicants who might not have a linear career path but possess the required skills. That’s a pretty good inducement in our talent-strapped industry. But organizations that have made the shift report a wide range of benefits, including:
- More diverse perspectives: Skills-based hiring is more likely to attract candidates from various educational and professional backgrounds, potentially leading to a more innovative and dynamic team. It can also attract candidates that better reflect your clients (not just your current staff).
- Higher-quality hires: Focusing on specific skills ensures that the candidate can meet outcomes effectively, leading to better performance and productivity.
- Engaged employees: Candidates are more likely to excel and be satisfied in roles that match their skills.
- More objective hiring: By focusing on skills and competencies, the process minimizes unconscious biases related to age, gender, background, or education.
- Greater adaptability: Employees with the right skills can adapt more quickly to new roles, business needs, or opportunities, adding agility to the organization.
- Improved employee retention: Worried about the costs of a bad hire? A survey of 1,500 employers reports 88% of companies using skills-based hiring saw a decrease in mis-hires. A strong skills fit often leads to higher job satisfaction and retention, decreasing the costs linked to turnover and rehiring.
The future for insurance professionals
Skills-based hiring isn’t change just for its own sake. In their 2022 report “Next in insurance,” PWC found that nearly 40% of workers think their jobs will be obsolete in five years—and that was before generative AI tools like ChatGPT hit the market.
In response, the report notes that “High-performing workers—especially younger ones—are strongly focused on building long-term skills” over accumulating years in one function. Skills-based hiring is a great way for employers and hiring managers in insurance to uncover the talent they need and create a future-forward workforce that will help them meet their business goals and serve their clients.
Check out these resources to learn more:
- PWC: Next in insurance: Insurance can win the war for talent—if they tell their story
- Deloitte Insights: The skills-based organization: A new operating model for work and the workforce
- McKinsey & Company: Taking a skills-based approach to building the future workforce
- Built-In: Skills-Based Hiring: What It Is and Why It Works
Kristin Nease is Vertafore’s Chief People Officer. She is responsible for all things people for Vertafore's 2,500 employees in the U.S., Canada, and India, including talent acquisition, employee development, engagement programs, culture, belonging, diversity & inclusion, internal communications, workplace services, and total rewards. She joined the Vertafore team in 2017 to lead human resource and drive an award-winning, employee-driven culture.