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Back in 2022, we polled our LinkedIn followers on how they got into the insurance industry. Half of respondents said they started their insurance career through networking, and only 3% of people studied something related to insurance in college. While we love the happy accidents and personal connections that bring so many great people into our industry, we can’t help but feel this is indicative of the lack of in-roads to insurance careers. And this is not the only sign…
For years, the insurance industry has struggled with hiring and retention. Half of the insurance workforce is reaching retirement age and job openings continue to outpace the unemployment rate, meaning every hire is a battle against other, needy organizations. This has not only led to short-staffed teams, but a drain on institutional knowledge and expertise. The ultra-competitive candidate market sometimes means hiring timelines are shortened are important steps in the screening and interviewing process are overlooked.
So while we can talk all day about how attract active candidates, make great offers, and retain your best employees (all important factors in restabilizing the insurance labor pool) the big question is how do we get more people in the insurance industry? We can’t promise all the answers, but we want to focus this article on the power of mentorship and how we can leverage those person-to-person relationships that got so many of us into the industry to help grow our businesses.
Mentorship goes beyond the boundaries of typical employee training and management. It is a symbiotic relationship where experienced professionals share their knowledge, skills, and insights to guide less experienced colleagues towards professional growth and success. This process involves more than just teaching; it’s about fostering a supportive environment where mentors and mentees engage in open dialogue, exchange ideas, and challenge each other to think critically and creatively.
Structured mentorship programs pair individuals together and often include scheduled training sessions, clear goal setting, formal feedback and more. In fact, having a formal, organized component to mentoring is associated with greater success. According to HR.com’s research, 82% of top-performing organizations have a structured component in their career mentorship programs.
In this industry, where the complexities of products and the nuances of customer relations are paramount, mentorship can play a pivotal role. It’s not only about transferring technical knowledge but also about imparting the wisdom gained from years of navigating the industry’s unique challenges. A mentor in the insurance sector serves as a role model, a confidant, and a strategic guide, helping mentees understand not just the ‘how’ of their tasks, but the ‘why’ behind industry practices. This depth of understanding is crucial for developing professionals who can contribute meaningfully to the industry’s evolution and sustainability.
By providing clear pathways for professional development and growth through mentorship, the insurance industry can position itself as a dynamic and supportive field for career advancement, attracting individuals who seek a workplace that invests in their growth. Not to mention both mentors and mentees have a 20% higher retention rate compared to employees not participating in a mentorship program.
Professional mentorship can take many different forms and each insurance organization will have its own best program format. Below are five of the most common mentoring structures. Consider how your existing staff structure and company culture might integrate with each or how you can combine elements to create a mentorship program unique to you.
In this model, more experienced staff members are matched internally with new staff or employees who are looking to improve their skills and grow their careers. Mentors and mentees spend time together one-on-one, setting goals for the relationship, having extended training and work sessions, and sharing feedback. This builds close relationships across company hierarchies and assists in long-term leadership development.
We always have something to learn from one another! Peer mentorship programs involve individuals at similar levels or stages in their careers mentoring each other. It’s particularly effective in fostering a collaborative learning environment where mentors and mentees can both teach and learn from each other. This reciprocal model encourages a more egalitarian approach and can be especially beneficial in breaking down silos and promoting cross-functional collaboration within an organization.
In this model, a single mentor works with a group of mentees. It encourages peer learning and group discussions, allowing mentees to benefit from multiple perspectives. If your organization has a larger portion of new employees to experienced staff, this can be a great model.
A company might send an employee to an external mentorship program in scenarios where specialized expertise or insights are needed that are not available within the organization. This could be for advanced skill development, exposure to different industry practices, or for leadership training. Not only does it reduce the strain on internal resources, it also enriches the mentees learning with diverse perspectives and provides networking opportunities.
This involves younger or less experienced employees mentoring more senior staff, particularly in areas like technology, social media, and current trends. It’s beneficial for fostering intergenerational learning and keeping older employees updated with new developments. It can also be a great tool for leadership development, teaching potential managers or executives to value the opinions and insights of their employees.
Like any good training initiative, successful mentorship programs require careful planning, which will look different depending on your organization and the model you select. Generally, rewarding workplace mentorship will follow these six steps:
It’s worth reiterating the transformative impact such a program can have. Not only does it address the immediate challenges of talent acquisition and retention, but it also positions your organization as a forward-thinking and employee-centric workplace. The implementation of a mentorship program is a testament to a company’s commitment to nurturing and developing its workforce, fostering a culture of continuous learning and mutual support. This approach not only benefits the current employees but also makes the organization more attractive to potential new hires, showcasing a clear path for career development and growth. As the insurance industry evolves, embracing innovative strategies like mentorship will be key to staying competitive and ensuring a robust talent pipeline.
Want to learn more about how a mentorship program could work for your company? Or already practice workplace mentorship and want to funnel more talented young insurance professionals into your organization? We have more than 50 years of experience partnership with companies to create the best, holistic staffing strategies and cultivating internal skills is a big piece of the pie! Get in touch with our team of recruiters to use this tool to its max.