Diamonds in the Rough: Recruiting and Retaining Good Employees

Recruiting good employees is a difficult task; retaining them can be even more difficult. That might be why hundreds of thousands of websites offering advice on how to retain employees appear when you key those words into a search engine. Or possibly why some consulting companies focus solely on these issues or why some management groups put out publications focused on employee recruitment and retention.

Recruitment and retention are important in all industries, but it may be especially so for the insurance industry, which is experiencing an employee shortage. A survey released by Insurity and Microsoft earlier this year reported that almost 60 percent of insurance industry employees are over 45 and that many of the new people entering the workforce – called Millennials – aren’t overly interested in joining an industry that the survey says they call “old in general” and “not innovative” with “poor public image.”

What can you do to recruit and keep employees with high skill levels in a variety of age groups? Type employee recruitment and retention into Google or whatever search engine is your favorite, you’ll get all kinds of answers. No, just kidding. Here are some things that might be helpful to know.

Employees obviously want to be compensated for the work they do for your company, but money isn’t everything. A 2003 article by Catherine Oak and Bill Schoeffler of California-based consulting firm Oak & Associates says the best way to recruit and keep the best employees is to use the “total compensation” approach. They say this approach consists of three basic ingredients: challenging work, work environment, and recognition and rewards.

“Employees with multiple skills and authority are in,” Oak and Schoeffler write. “Provide additional opportunities for learning and skill development to spice up work.” As far as work environment, they say to be flexible because that’s what today’s workforce is looking for and flexible work hours are becoming common ways to attract and keep good employees. Recognition and rewards are important, too, and often can be low-cost parts of the total compensation package. “Non-cash recognition awards are a very effective way to reinforce the agency’s values,” they say.

The best way to find and retain employees might also depend upon the age demographic of the worker or workers you want on your team. According to a Boston-area staffing and recruitment firm –Winter, Wyman – the baby boom generation, Generation Xers, and Millennials all look for different things when choosing the right positions for them or when deciding to stay with a company.

Baby boomers want to have shorter commute times; to show loyalty to their employers and be shown the same from their employers; to have financial security, stability, and opportunities for post-retirement employment; and to be able to mentor younger generations as they hit retirement and need to be replaced. Employees in Generation X value a stable, established employer; the right to be able to question authority; and flexibility in a job that will allow balance between their work and personal lives. Millennials, also known as Generation Yers, according to Winter, Wyman’s Dave Sanford, want to have a free agency attitude as well as work arrangements; to make a difference within their companies and have employers that make a difference in the world; to use cutting-edge technology; to continue to learn and be able to provide input to their employers based on what they learn; and to have flexibility in their roles, schedules, dress codes, and working environments.

A lot of it comes down to making sure the goals, wants, and needs of your company match with the goals and wants and needs of a potential hire. If those don’t mesh, they might not want to stay and you might not want to keep them.

Posted: Friday, September 26, 2008 12:00:00 AM. Modified: Friday, September 26, 2008 9:47:46 AM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.