Insurance companies must balance the short-term benefits of remote work with long-term growth strategy

?Four years on from the start of the pandemic, approximately 68% of Fortune 100 companies have embraced hybrid working, according to JLL research. Somewhat surprisingly, the insurance industry—which skews older and more traditional than many other industries—is at the forefront of this trend with leading insurers fully committing to flexibility options and requiring lower than average in-office attendance than other industries.

In fact, more than 80% of leading insurance companies are offering hybrid or remote-first options, with an average of 2.3 days of required office attendance per week. That suggests more policy flexibility and more autonomy in employee decision making. Simultaneously, many insurance companies have moved quickly to shed costs by reducing their corporate office footprints. Yet, a compelling workplace is as important as ever where attracting and retaining talent, productivity, corporate culture and professional development are concerned.

Hybrid work can be an effective tool but it must be nested inside a broader workplace strategy that focuses on business objectives and reinforces corporate culture. Organizations must leverage innovative concepts and technologies to ensure that hybrid doesn’t result in shallow team connections and higher attrition levels. One such innovative example is Dynamic Occupancy Management , ?which helps organizations manage unpredictable space demand while offering an easy and frictionless way for employees to customize their workplace experience. Forward-looking companies are investing in sophisticated and integrated workplace technologies to drive cost efficiencies by predicting patterns of demand in their real estate and providing the right workspaces to meet workers’ needs.

Ultimately, it is possible to balance portfolio savings with a great workplace—but the process requires experimentation and customization for organizational culture.

The pressure to create a great workplace

One compelling reason to rethink the insurance workplace is demographic change. By 2036, an estimated 50% of current insurance workers will have retired, according to the U.S. Bureau of Labor Statistics. As older employees retire, the insurance sector will need a new workplace value proposition to attract and retain Gen Z talent (born between 1997–2012), forecast to constitute 30% of the total labor force by 2025.?

While the infusion of automation and AI-driven technologies may help to solve some of the industry’s talent gap it will also put insurance in direct competition with other industries for technology talent. In fact, this trend is already apparent as the number of software developers working in the insurance sector jobs has spiked over the past three years .

In this hyper competitive talent environment, the insurance industry must create a? differentiated work experience that capitalizes on the many benefits of hybrid work.

Developing the right strategy

Shaping a great workplace value proposition begins with understanding what employees want from the office. Gen Z employees, for example, are energized by a high level of interaction at work, according to JLL Research, but also want the flexibility of a hybrid schedule. Contrary to popular opinion, younger workers actually want to be in the office, at least some of the time, for mentoring, collaboration, experiencing corporate culture and enjoying a sense of shared purpose.

Choice is also a key component of a great workplace, so companies should avoid replacing every individual workspace with group settings. Our research has found that 51% of the time in offices is spent on focused work. One smart strategy is to provide a diverse range of workspaces—enabled with workplace technologies—for small or large group activities, one-on-one collaboration, private phone calls, heads-down focused work, social activities and more.

Another finding from JLL’s Insurance Executive Forum was that workplace strategy is not “set it and forget it.” Instead, it’s better to start with pilot programs for in-office engagement and provide flexible furniture options to make full use of the space. Think of your office space as an evolving work scape that is continuously adapting to the needs of key team members. There are many sophisticated ways of tracking use and attendance but ?simply walking around the office is a good way to gauge enthusiasm for the space and learn how employees are using it beyond the raw data.?

Another key strategy is to create a workplace experience team to program meaningful experiences, services and amenities. Pop-up art galleries or shops, massage days, wine tastings, onsite yoga classes—the list is endless. These programs appeal to team members by offering them the excitement and novelty that lures them out of the comfort of home offices. An experience team can even create community projects to bring employee volunteers together around a shared philanthropic purpose, providing a meaningful channel for forging new connections.

Workplace initiatives have the best chance of success when backed by a thoughtful change management program— and it’s worth every penny.? Since your workplace strategy is likely to evolve continuously, constant change management should be a priority to avoid the productivity dips that typically accompany change.?

Making every dollar count

More than 62% of insurance company relocations since 2019 have been into higher-quality space. For example, one Indianapolis insurance company turned an unexpected move into $4 million in savings and a vibrant new workspace for the hybrid era.

However, moving into that shiny new space doesn’t mean you’re making the most of it.

The office should offer an experience that helps employees benefit from in-person collaboration, mentorship and productivity tools, while also providing flexibility. The office is equally important for recruiting those future employees—especially in an industry like insurance that needs to appeal to a new generation of workers. The question is, what kind of workplace strategy will work for your organization?

Learn more about how the insurance industry real estate landscape is shifting here .