Talent Predictions for 2023

It’s safe to say that 2022 has presented its challenges for the insurance sector. A significant rise in inflation, adverse weather patterns, talks of another recession, soaring energy prices, and a continued struggle to find promising Talent amidst the Great Resignation.

The many unpredictable events in 2022 have impacted this year’s Talent Predictions for the insurance industry, with many of last year’s Talent Trends remaining relevant for 2023.

There have been some substantial technological and societal shifts. DE&I is still very much front and centre as a hot topic. The acceleration of digitisation and the move towards smarter ecosystems continue to promote technical roles as the most advertised and sought requirements over any other area of the UK labour market. As pay, benefits, and remote/flexible working remain high on the employees’ priority list, some companies are pulling out all the stops, delivering strategies on individual purpose and values to get the competitive edge.

So, what does this mean for Talent and our industry?

While there’s no such thing as a 100% recession-proof career, many jobseekers will seek out “safer” careers. Some industries offer greater job security than others amid the rising interest rates and inflation recently experienced. Thankfully the sector of insurance remains resilient and essential in any economic storm. This being said, it’s likely that we could see an influx of candidates pivot towards career opportunities in the sector. As a result, companies should develop their hiring strategies around hiring Talent with transferrable skills from other industries for some difficult-to-hire roles.

Power skills will dominate employer wishlists.

“Soft” leadership skills are being rebranded as “power skills” in today’s remote and hybrid work environments. They’re essential in today’s workplace, but a shortage fuels our current skills gap. According to LinkedIn data, the skills needed to perform in a role have changed by 25% between 2015 and 2022 and are predicted to change by another 41% by 2022.

Artificial Intelligence (AI) is taking over repetitive tasks in the workplace. As a result, employers focus on power skills when looking for candidates, and many in-demand job skill sets are changing fast.

Empathy, curiosity and listening are key to a company’s growth mindset. These personality traits and behaviours help people flourish in their jobs, raising productivity. Meanwhile, problem-solving, communication and leadership were three power skills that dominated job descriptions on LinkedIn throughout 2022 and are likely to continue this year.

The need for these qualities will only grow in importance and relevance in the new talent economy. Numerous studies have shown that the costs associated with upskilling are far lower than letting go of workers and replacing them with new ones. Therefore, it’s likely that 2023 will see a lot of upskilling initiatives in the workplace, and employees and candidates open to continuously gaining new skills throughout their careers will stay ahead of the curve.

AI = A faster talent process

It is evident that the shift to online interviewing vs in office shaves days off of a recruitment interview process. 2023 is likely to see a new age of rapid recruiting.

As with any other industry and market, AI is everywhere. Talent experience platforms with AI tools to automate sourcing strategies and personalised experience will significantly impact recruitment speed and accuracy.

With the labour market still very candidate-driven, slow processes and feedback will result in losing potential Talent. Talent is no longer waiting two weeks for a job interview; they want a job and want it now. The historical process of multiple interviews over several days with different hiring team members is now regarded as way too slow.

AI’s role in hiring will continue to increase, offering objective data-driven sourcing and selection tools, along with valuable candidate insights – machine learning will help to deliver quality talent in quantity. This could also increase unconscious bias in recruitment, which is beneficial from a DE&I perspective.

AI technology won’t replace recruiters or HR. Still, it can vastly improve these roles by removing tedious manual elements and freeing teams up to focus on more value-adding strategic tasks.

Mental Health policies for employers.

The Great Resignation has shown us that workplace happiness and satisfaction are critical to employee retention. Regardless of the economic challenges that many companies will likely face this year, corporate leadership will find it necessary to continue focusing on employee retention and happiness to keep their Top Talent.

According to Willis Towers Watson’s wellbeing diagnostic survey, the top two emotional wellbeing actions employers plan or consider in the next two years are programmes to support chronic mental health conditions and secondly assessing policies and procedures for response to workplace mental health.

TalentLMS data shows that almost three-quarters of the youngest workers want mental health days and access to hybrid or remote work. More candidates are looking for their employer to value their whole selves, including their work-life balance, outside interests and wellbeing. Employers who want the best Talent should take note.

Compensation & Benefits are a favourable talent attraction piece, especially for experienced hires.

The amount of transformation in the workplace right now can be overwhelming! Currently, firms from all sectors are battling to attract, engage, develop and retain the same in-demand individuals to help them navigate future change and distruption. The seemingly endless pay, benefits and policy implications of so much change, coupled with a cost-of-living crisis is a lot to contend with.

From late 2021 to the first quarter of 2022, many companies thought that remote working could result favourably in an ability to lower salaries or even diminish London-weighting costs. 2022 data has proven that this is not the case. Amidst a looming recession and as workers struggle with the rise of the cost of living, it’s quite the opposite. Cash compensation is likely to be even more important, and work location is irrelevant to the expectation of higher salaries.

However, it isn’t just compensation that’s a differentiating factor. Like much of 2022, companies have to look at their wider offerings beyond basic salary as the market remains at its most competitive for a long time.

In-office benefits such as gym memberships or free food/drink/coffee facilities are much less valued compared to pre-pandemic times as they are no longer useful for the hybrid/remote work style. To distinguish themselves from others, rewards and benefits professionals will need to assess regularly and get creative with their perks this year as demands of candidates and employees heighten, all while keeping a close eye on sticking within their company budgets.

ESG & Purposedriven work.

A word that will firmly stand on the agenda for 2023 is purpose. It seems to be a must-have concept, but the key to success for businesses will be their ability to translate this into tangible actions.

Top Talent is very focused on ESG issues; specifically millennials and Gen Z, whom Mercer reports will make up 72% of the workforce by 2029. Candidates entering the market are planning their careers not just around joining a stable company that pays well. They’re also evaluating company sustainability, DE&I and the company’s purpose beyond profit.

While that’s great for candidates and employees, it profoundly impacts organisations. How insurers compile and action their Talent and Resourcing strategy and how they choose to find, retain, value and treat their employees over the next year will be pivotal to each company’s workforce success.

In summary, it’s been a tough year for insurers, but many have focused on advantages in the face of uncertainty. People are still empowered to choose jobs that make sense to them, fit their lifestyle and values, and pay well. So it’s fair to say the current candidate market wants it all!

If available technological tools are utilised, and effective strategies behind finding, retaining and valuing employees remain a top priority; this next year could be an excellent year for Talent in the insurance market.

Here at r10 Consulting, we offer our talent expertise as a service in several ways. We actively resource and pipeline top Talent in insurance and technology, boasting a large active, specialist talent pool of consultants and candidates available for both permanent and contract assignments.

If you would like to know more about how our services can help you, please reach out to us at opportunities@r10.global

About the author.

This article was written by Lauren O’Donoghue, our Talent & Resourcing Manager. Lauren leads the talent attraction and resourcing strategy for r10 Consulting while attracting, engaging and hiring the best possible talent for r10 and its clients.

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