Choosing the right approach for your insurance talent acquisition is crucial to securing the best people.
Understanding the two different insurance talent acquisition methods of recruitment and executive search will help insurance businesses make the right decision when it comes to their hiring strategy.
The U.S. Bureau of Labor Statistics stated in 2018 that “The US insurance sector is to lose around 400,000 workers by 2026”.
Most of this attrition is attributable to Insurance Professionals retiring. The situation makes insurance talent acquisition a hot and incredibly important topic for the sustainability of the insurance sector.
Insurance talent acquisition professionals are under pressure to attract a new generation in to insurance, but to find leaders who can bring a fresh perspective. Diversity of thought and innovation.
This insight explores two distinct options within the insurance talent acquisition arena – recruiting and executive search.
These two different approaches to insurance talent acquisition both play their part in helping the insurance industry address the insurance talent gap.
What is recruitment? And what role does it play in insurance talent acquisition?
Insurance recruitment focuses on attracting and hiring people in to more general positions, spanning entry to mid-level job roles.
Since these positions are not usually highly technical or specialized, they may be handled by an in-house HR or Insurance Talent Acquisition team.
Or the business may outsource the work to a third-party insurance recruitment firm, to help fill particularly high-volume roles.
Methods used by recruitment – either in-house or through an external service – include posting on job boards, CV libraries and social media channels such as LinkedIn, and newsletters.
Recruitment in the context of insurance talent acquisition is about attracting a higher volume of less specialized candidates.
Recruiters will want to tap in to the broadest talent pool of active job-seekers and build a ready supply of CVs / resumes and applications.
As part of their insurance talent acquisition efforts, recruitment is all about casting the net as wide as possible.
It’s about quantity over exclusivity.
Executive search, its role in insurance talent acquisition and the need for senior insurance executives
An executive search approach to insurance talent acquisition is for highly-specialized, used for attracting insurance talent for senior level positions – typically VP to C-level insurance roles.
For these types of insurance roles, candidates will usually need a specialized skills set and be able to demonstrate significant experience and expertise.
The insurance leaders required for these senior roles are highly sought after and are often referred to as passive talent.
This means, they are unlikely to be looking for a job, but may be open to a new opportunity within an insurance business that matches their career development ambitions.
Executive search requires a much more targeted and personalized approach.
As part of their insurance talent acquisition strategy, businesses across the insurance spectrum will turn to an external executive search partner to help attract these leaders.
A specialist insurance executive search firm will comprehensively research the market, assess and carry out interviews to produce a shortlist of candidates on behalf of the hiring insurance business.
Only once an executive search consultant is convinced of the candidate’s suitability and experience, will they recommend them as a fit for the role.
The process of attracting top-tier insurance talent is much more detailed and operates on a longer timeframe.
HR teams often seek the support of an external partner to carry out this important insurance talent acquisition function on their behalf.
Using an external search partner who aligns with the insurance business’ vision and values, culture and EVP is one of the most efficient ways of attracting candidates to high-level, senior leadership roles.
Recruitment versus Executive Search
As part of the insurance talent acquisition landscape, other elements to consider when comparing recruitment with executive search are:
Compensation and benefits.
Recruitment is concerned with salary, whereas executive search will focus on and negotiate the compensation and benefits required to attract the right senior level insurance leader
Recruitment is broad, seeking to engage with the highest number of active job-seekers.
Executive search targets a much smaller number of passive candidates, with strategic leadership capabilities.
Recruitment’s success in insurance talent acquisition is measured by the number of insurance roles filled within a short, targeted time period.
An executive search This in-depth selection process maximizes the chances of the candidate meeting the job requirements and being the right cultural fit for the organization.
The success of an executive search is based on identifying the right candidate, who will have long-term impact and contribute to the delivery of the insurance business’ strategic goals.
Job seekers and employers in a rapidly evolving job market
It’s crucial for both job seekers and employers to understand the role both recruitment and executive search play in the insurance talent acquisition process.
Insurance candidates can then align their career development goals with the approach that fits best.
Employers will benefit by understanding the differences and clearly identifying, which job roles require which approach.
Read more about all the Elements of the Executive Search Process
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Insurance Executive Search Specialists USA