The aftermath of COVID-19 has ushered in events including the Great Resignation, mass layoffs, and the hybridization of the workforce that challenge technology vendors’ talent strategies today. The fast-paced world of technology demands a steady stream of top talent, especially for vendors servicing the insurance industry as insurers harness AI, IoT, data analytics, and other advanced technologies. Consider that tech employment is expected to grow a total of 13% between 2020 and 2023, according to the Bureau of Labor Statistics. With this in mind, it is critical for vendors to be strategic in 2023 and beyond in how they grow and retain valuable talent in a market rife with competition.
A new research report from ReSource Pro examines how insurance tech vendors’ strategies are evolving in the competitive labor market. Insurance vendors are increasingly recognizing the critical role of talent retention in developing future leadership, productivity, and innovation in a competitive talent market—unsurprising given the cost to recruit and fill a tech role can run up to $30,000. Nearly 90% of vendors stated that retention is their top talent priority this year. This is a shift from 2022 when vendors’ top talent objective was attracting new talent. Within the past three years, vendors have implemented many initiatives to retain employees that include investments in employee training, well-being, and compensation. For example, most vendors have placed greater priority on their business models, such as increasing the availability of remote and hybrid work. Vendors are also offering more opportunities for career development, supported by education/training and initiatives to redefine roles and responsibilities.
The findings of the research report highlight the critical role that tech talent plays in enabling carriers to navigate the complexity of the current digital landscape. Looking toward the future, insurance vendors must adjust and balance their priorities for professional development. There is every reason to expect change to continue, with the rapid acceleration of technology and demographic changes, so vendors should plan to regularly review and modify their talent strategies to stay competitive and evolve their workplace to better meet employee expectations.
For more information on workforce trends and talent strategies for insurance vendors in 2023 and beyond, read ReSource Pro’s recently published research report, “Talent and Workforce Plans for Insurance Vendors: How Strategies Are Evolving in A Competitive Technology Talent Market.”