Introduction:
Talent gap simply refers to a lack of skilled personnel in an organization. The Talent gap is a term that describes the gaping hole between the requirements of a job and what job candidates possess in terms of professional backgrounds and expertise.As the job market increasingly focuses on technicalTalent, employers are having a challenging time finding applicants with the background and experience needed to meet the needs of changing job roles.Many industries and employers are having trouble filling positions. Still, some industries are struggling more than others, Insurance Industry is prominent among them. There areabout 65% of respondents said that they believe a Talent gap is affecting their organization as per the survey conducted by Wiley Education Services. Being unable to find employees with necessary Talent is costing companies with serious drain of money. The average job vacancy costs around 3.5 lacs of rupees and a turnaround period of 65 days. In other words, the Talent Gap is as similar to workforce shortage in the system.
When Insurance eco system is considered workforce has a different set of meaning in comparison to other industries of the economy because of the unique functionality and a separate set of process of workings. The departments like Underwriting, Actuarial, Claims, Pre-Inspection, Legal, Cover note and Proposals, Accounts etc has its special working features where the Talent or Talents of the employees plays a very paramount role in determining the top line as well as bottom line of the organization. The talents in Insurance industries creates a phenomenal bonding among the team members that Knowledge of a particular kind flows automatically if the talent pool is of homogeneous nature.
Causes of Talent Gap:
The phrase is used to describe the difference between the Talent that employers want, as shown by their job advertisements, and those that are available from workforce looking for a job.Because of Talent gap employee might not be able to perform the complete job leading to financial crisis both to the organization as well as to the economy. There are numerous causes that leads to Talent Gap but important of them are economic conditions, local market trends, demographics, immigration patterns, education and training capacity, and force majeure incidents, such as natural disasters or pandemics which are termed as External factors. The organization also possess few Internal factors like changes in technology, high employee turnover including resignations, terminations etc along with introduction of new work practices.
As far as Insurance Industry is concern the industry needs new talent skill sets to tackle rapidly evolving risks and accelerated digital progress.Filling insurance-specific roles has been a particular challenge.As more knowledge work is automated, the workforce lacks in more creativity, critical thinking, and social intelligence to shape and guide the organization. As far as Insurance is concerned the market is underexplored and there are far ways to go for the Insurance professionals and other employees due to its vagaries of nature of work. The Insurance industry is reeling under the acute pressure of crisis in manpower and the Talent Gap is acting as a catalyst to it.
Consequences of Talent Gap:
A Talent gap, when left unaddressed can cause serious problems for an organization.
Increased costs: A Talent gap is bad for the top line as well as bottom line. When the right people cannot be hired at the right time or existing employees need to upskill but employee training capacity lags behind – employers may be forced to take more expensive measures to make up the shortfall, such as hiring freelancers or contractors.
A drop in quality: In any industry, maintaining quality is vital to success. When employees are lacking sufficient Talent to keep quality high, the business can suffer in multiple ways, including loss of revenue, dissatisfied customers, and reputational damage.
Competitors gaining a workforce advantage: If a Talent gap is caused by an exodus of employees to a competitor, this can have serious consequences for own operations, productivity, and staff morale. Insurance Industry is suffering from such issue in a very severe manner.
Dissatisfaction among the peer Employees: The Talent Gap in Insurance has really created a deep vacuum for which the Industry is having a correct frame work towards the same. The Employees are dissatisfied with the workforce who are not having adequate skills or qualification with respect to the nature of work and thus is a concern which is really impacting the functionality of the Industry.
Ways to Identify the Talent Gaps:
- Survey the leader and explore in each department of the organization about the shortage in Talent/Talent like in Underwriting and in Re-Insurance. The skills or qualifications should commensurate with the nature of work assigned.
- Conduct Interview with Employees on regular basis to capture the Talent index.
- Train current Team leaders who in turn will train the followers swiftly.
- Take a new approach to Hiring and be ready for capturing the right talent with proper qualifications for the Insurance industry.
- Keep an Eye on the Competitors on regular basis and try hard to implement the new concepts from the competitors.
- Timely injection of new talent into the system.
- Embrace continuous learning and the department should constantly endeavour towards the learning of the employees and Insurance is a Knowledge based Industry.
Ways to Combat the Talent Gap:
Talent/Talent audit: A good way to help prevent a Talent gap before it happens is to undertake an organization-wide Talent audit. This is a good way to not only create a detailed record of the Talents of every employee, but it also helps identify areas where upskilling is required. One of the pleasant surprises that can emerge from a Talent audit is to discover employees have Talent and qualifications that the employer might not have been aware of – this can help prevent Talent gaps by better deploying employees within the organization. If Talent gaps are identified, employers then have an opportunity to improve training processes to help ensure long-term success. The best result here is motivated, productive, multi-skilled employees who are versatile and able to move around various roles in the company and share their knowledge internally.
Improved internal training programmes: Following on from a Talent audit, it makes good business sense to regularly review internal training processes. For example, it is worth examining whether senior employees would be able to mentor junior employees on a one-to-one basis. This has the advantages of upskilling junior employees, creating a more well-rounded workforce, and aiding in succession planning. At a broader level, it is worth investigating internal training sessions where knowledge can be passed on to multiple employees at the same time.
Better recruitment practices: A Talent gap can be frustrating if hiring suitable people becomes a challenge. This could be the catalyst for reviewing and improving the way you recruit people. Whether advertising through the most relevant publications and websites are done? Are we using a recruitment company that does not understand our needs? Are we asking the right questions at the interview stage? Is unconscious bias playing a role in rejecting suitable candidates? Asking self these often tough questions can be a powerful first step in improving the way employees are recruited – and, as a result, the workforce will have the Talent required for success.
Talent gaps do not have to take organizations by surprise. By taking a long-term, strategic approach to ensuring a properly skilled workforce is in place at all times, employers can reap financial and social benefits. Preventing Talent gaps is an important part of developing a resilient organization that can survive and thrive, even in challenging times.
Leverage problems as opportunity:Problems in the workplace should be seen by employees as opportunities to develop their skills and hone their talent for future performance. Learning the causes and stresses inherent in the problems can be helpful for both the organization and the employees. Insurance Industry possess a challenges in every Risk that comes for its coverages.
Benefits of combating the Talent Gaps:
For Organization:
Talent management or combating the Talent Gaps is integral to modern businesses and is one of the crucial management functions in an organization. Here, the below listed major benefits that Talent Management has to offer is given below:
- It helps the organization fulfil its vision with the help of efficient and promising talented people.
- Talent management also assists the organization to build a talent pool comprising a list of talented people to meet future exigencies.
- It makes the organization more competitive and progressive.
- It paves the way for future leadership.
- It helps automate the core processes and helps capture data for making better decisions.
- Automates repetitive tasks like creating small proposals thereby releasing time and resources for making strategies and more critical risks.
For Employees:
The following points explain how Talent Management can be beneficial for employees
- Promotes long-term association with the organization.
- Persistent and higher productivity of employees.
- Keeps the employees motivated which helps in career development.
- Helps the employees get job satisfaction from their work.
Conclusions:
Closing the Talent gap requires efforts from employers and prospective employees. Employers must realize applicants might not arrive as a complete package. If you think of applicants as people willing to learn and grow with the company, then it can open opportunities for both employers and employees. Employees and applicants should consider expanding their knowledge through training programs focusing on essential skills. Working together is a win-win for everyone and a way to slowly but surely close the Talent gap.Persistent talent gap is likely to hamper the growth and development of an organization. It also has a negative impact on the employees’ motivation as they feel demotivated due to lack of talented people to look up to for necessary instructions and advice to work effectively.
