Making the right insurance executive hire for your business is like finding the key piece in a puzzle.
Like trying to force a wrong piece in to the wrong a space, making a poor insurance executive hire can be extremely frustrating and very costly.
The right insurance executive hire however will complete the picture. Adding a senior leader who fits with the culture, has the vision and energy to drive the organization forward and empower those around them will be a huge boost.
Investing in the insurance executive hire process, will attract the very best insurance leadership and prime your organization for long-term success.
But rushing or making an uninformed insurance executive hire can result in significant hidden costs that stretch far beyond the initial recruitment investment.
Many involved in a senior level insurance hiring process often underestimate the expenses associated with a poor insurance executive hire.
In this insight, we outline 5 costs associated with a bad insurance executive hire:
1. Decreased Productivity:
When a new insurance executive hire isn’t the right fit, productivity and morale will suffer.
Miscommunication, lack of skills, and poor cultural alignment can lead to confusion and inefficiency within the team.
Colleagues may end up spending excessive time assisting the new hire. They are likely to be diverted and distracted from their own responsibilities and teams.
2. Training and Onboarding:
Every new employee needs to be trained and onboarded. If the new insurance executive hire doesn’t work out as anticipated, valuable resources – time and money – invested in training them will be wasted.
A sub-par insurance executive hire might require additional training sessions, necessitating more time and money into a leader who is unlikely to positively contribute to the company in the long haul.
3. Impact on Morale:
A poor insurance executive hire can significantly impact the morale of your existing team.
Initial excitement and anticipation may well turn to frustration.
Fellow leaders and employees may feel demotivated if they have to compensate for an inadequate colleague. Frustrations can soon result in a toxic culture.
Low morale can cause staff turnover rates at all levels to rise, all of which impacts recruitment and training expenses.
4. Reputation Damage:
If an insurance executive hire doesn’t work out, it quickly can tarnish your insurance business’ reputation, both internally and externally.
Internally, it might signal to all levels of employees that you hiring practices and process isn’t fir for purpose.
This may prompt talented individuals to review their career aspirations, and whether your business is the best place for them to progress.
Externally, prospective candidates may reconsider whether you are a business where they can build a successful insurance career.
A poor hire can significantly tarnish your brand’s image in the marketplace.
5. Turnover Costs:
If the bad insurance executive hire departs soon after joining or is let go, you’re back to square one and will be looking for another strategic insurance leader or to fill a critical hire.
This will incur recruitment, onboarding, and training expenses all over again.
An executive leader leaving as a result of a poor hiring judgment or inefficient can also impact staff turnover rates lower down the organization.
This can breed instability within the organization, and make it challenging to retain quality employees in the long term.
As with all things, you get out what you put in.
Putting the work in upfront will in all likelihood guarantee in a brilliant insurance executive hire.
Although you will need to put in a heftier investment initially – time and resources – to support your due diligence and hiring process, you will benefit in the long run.
As opposed to a poor insurance executive hire, a great leader will increase the productivity and efficiency of your team. Morale will be boosted throughout the organization and the onboarding and training process will be smooth.
Quality insurance executive hires tend to stay longer, mitigating turnover costs and provide stability to your organization. They will contribute positively to your company, and foster a conducive work environment.
This in turn attracts more top-tier talent.
In conclusion, the hidden costs of a bad insurance executive hire can be extremely costly to your business.
Prioritizing quality during the hiring process, with or without the support of an external recruitment partner, will save you money in the long term.
Making the right investment in hiring at the outset can increase the chances of making an excellent insurance hire.
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