Why Your Insurance Employees Aren't Engaged

The insurance industry is currently navigating some real challenges. As the ageing workforce begins to retire, there's an urgent need to fill these gaps with new talent. However, many insurance companies are struggling not only to attract new employees but also to engage and retain them once they're onboard.

According to the CEO of The Jacobson Group, "We (the insurance industry) are at the lowest in the last 10 years in terms of the percentage of people who are being laid off, and we’re at the highest in the last 10 years in terms of the number of people who are quitting." (Insurance Business Mag)

The insurance industry faces a turnover rate of 12-15%, with voluntary turnover spiking at higher levels than before, as reported by Deloitte.

There are plenty of retention strategies to pay attention to, but one of the core factors that employers need to focus on is engagement.

While salary and progression are obvious reasons for employee disengagement, work environment and overall job satisfaction is easily ignored. A recent 2024 Gallup survey reported by CNBC found that only 10% of UK employees feel engaged in their jobs, leaving a staggering 90% feeling detached and on the brink of "quiet quitting." This level of disengagement results in low-quality work, lack of effort, and ultimately, higher turnover rates—issues the insurance industry can’t afford.

THE MANAGEMENT IS POOR

Poor management is a primary driver of employee disengagement. Employees rely on their managers for support, motivation, and structure. However, many managers fail to provide these essentials, leading to dissatisfaction and disengagement.

The saying "People quit bosses, not jobs" is truth in it because 57% of people quit due to their bosses and 37% have considered it. (PR Newswire) Effective management is crucial for maintaining a satisfied and engaged team.

Here are some ways managers can improve:

• Provide better structure: In the insurance industry, where dealing with constant claims and caseloads is the norm, providing a clear structure is vital. Employees need to understand their roles and responsibilities to perform efficiently.
• Avoid micromanaging: Allow employees the autonomy to manage their work. This not only boosts their confidence but also fosters a sense of ownership and accountability.
• Be approachable: Create an environment where employees feel comfortable approaching their managers with issues or suggestions.
• Lead by example: Demonstrate the behaviours and work ethic you expect from your team.

THE WORK ENVIRONMENT IS UNINSPIRING

An uninspiring work environment can drastically affect employee motivation and engagement. If the office atmosphere is bland, demotivating, pressurizing, or tense, employees will not look forward to coming to work each day.

A positive work environment and a strong company culture are crucial. Too many companies either lack culture in general or they have a negative one, where employees do not bond, managers induce stress, and unrealistic expectations prevail.

Employers can improve the work environment by:

• Creating a positive atmosphere: Encourage a friendly and supportive office environment. This can be achieved through team-building activities and fostering open communication.
• Promoting a healthy work-life balance: Ensure that employees are not overburdened and have time to recharge outside of work.
• Recognising and rewarding efforts: Acknowledge the hard work and achievements of employees regularly.

THERE IS NO INDIVIDUAL SUPPORT

A lack of individual support can lead to mistrust between employees and managers. According to a Harvard Business Review survey, 58% of respondents trust strangers more than their own boss. This highlights a significant gap in the employee-manager relationship.

Managers who are distant and fail to engage with their team members on a personal level are likely to face high disengagement rates. Introducing one-on-one meetings can significantly improve trust and support.

Individual support includes:

• Regular one-on-one meetings: Use these sessions to discuss career progression, address concerns, and set individual goals.
• Tailored performance plans: Help employees see a clear path for their growth within the company and manage it with a structured performance management strategy.
• Boosting motivation: Engage with employees to understand what drives them and how you can support their aspirations.

CASELOADS ARE TOO STRESSFUL WITH NO SUPPORT AND RECOGNITION

If you have employees facing burnout, don't be surprised when turnover becomes the norm. It's understandable that if you're facing a talent shortage that your employees are dealing with higher caseloads, but what have you been doing to support them with that?

And most importantly - are you even recognising the fact that your employees are stressed?

Far too many managers can have this mindset that their employees should simply "get on with it" because they're employed to do the work, whilst forgetting that:

a) Your employees can't work at their top level when burned out

b) Your employees won't want to work at their top level when they're not appreciated

c) Your employees aren't tied down to this position and they will start to look around if they feel like nothing is changing

It's so important for you as employer to be sensitive to the workload employees have, especially in insurance where they're mangaging important, sensitive caseload.

Take time to recognise and address the stress your employees face. This includes:

• Increasing communication: Regularly check in with employees to understand their workload and provide necessary support.
• Delegating tasks: Ensure tasks are distributed evenly and adjust workloads as needed to prevent burnout.
• Acknowledging Efforts: Show appreciation for the hard work employees put in, particularly during high-pressure periods.