Recent research into recruitment inefficiencies has revealed that three-quarters (75%) of insurance businesses have experienced serious issues as a consequence of the time and cost required to train and support new junior and graduate hires in their workforce.
According to survey data from emerging talent and reskill partner, mthree, 42% of businesses in the insurance sector have seen productivity fall due to needing to constantly devote increased resources to recruitment and training. Nearly a third (31%) have had to turn away work due to internal talent shortages, 20% said that their cash flow has been damaged, and 22% reported that they have been unable to expand.
Despite 98% of insurance businesses offering training to new employees, with 65% offering a structured training programme, 45% providing training on an ad hoc basis, and 42% using external training providers, the research found that 95% of these organisations have needed to invest in additional training and resource for new junior employees.
For instance, 47% of insurance companies needed to find extra time to familiarise junior employees with the specific technology used by the department, 36% needed to help employees with their softer skills, and 15% found that new employees were not as qualified as initially advertised – adding further time and resource pressures onto the onboarding process.
Interestingly, the research also revealed that whilst insurance businesses are typically spending a month training up new junior talent, it can take up to six months before these hires start to add real value to the business.
Commenting on the research, Ben Town, global head of sales at mthree, said: “It’s important to remember that emerging talent is the future of every workforce, and, in spite of this initial outlay, businesses would struggle to survive without the regular influx of fresh, enthusiastic faces keen to make their mark.
“However, there are naturally certain roles and disciplines that require more indepth, specific training than others. In these situations, it can be extremely valuable to explore alternative options, such as working with emerging talent providers. By taking promising graduates with raw potential and turning them into productive professionals who immediately start contributing to the bottom line, last mile training can bridge the gap between education and the workplace and tackle many of the issues commonly associated with hiring graduate talent.”
