The shift to hybrid work models has significantly impacted the insurance industry in Australia, raising questions about the long-term sustainability of these arrangements.
According to Gallagher Bassett’s “The Carrier Perspective: 2024 Claims Insight” report, 25% of Australian insurers express concerns over the future of hybrid work models. On a global scale, 30% of insurers have noticed a marked decrease in employee engagement, and 17% report lower productivity under these work models.
In addition to these challenges, the industry faces difficulties in attracting and retaining skilled professionals. One significant factor is the impending retirement of a large portion of the workforce within the next five years, exacerbating the talent shortage.
To counter these challenges, insurers are implementing various strategies to improve employee retention, according to Gallagher Bassett.
Globally, 84% of insurers have increased salaries to remain competitive, compared to 80% in Australia who have adopted this approach. Additionally, 65% of Australian insurers have redesigned their benefits packages to retain staff.
See LinkedIn post here.
“Prioritising the wellbeing of our workforce is not only essential for their personal happiness but also for driving productivity and success. By offering comprehensive wellness programs and benefits, insurers can create an environment where employees feel supported, empowered, and motivated to give their best every day,” said Tanith Jones, head of people operations at Gallagher Bassett Australia.
Jones noted that Gallagher Bassett Australia recently introduced a mental health and wellness program designed to enhance overall employee wellbeing. This initiative includes ongoing confidential counselling services, providing vital support to employees dealing with personal and professional challenges.
“By offering access to professional counselling, employees have invaluable support to navigate challenges that can impact their wellbeing and productivity,” she said.
The report further found that 35% of Australian insurers are incorporating AI-powered solutions to automate routine tasks and improve employee engagement. Upskilling initiatives are also a priority, with 68% of insurers recognising their importance for retaining talent.
“Insurance leaders play a crucial role in supporting and upskilling their employees. By seeking out the best talent both internally and externally and collaborating on individual development plans for those aspiring to grow within the business, insurers can positively influence both employee engagement and retention,” Jones said.
Aside from improving employee wellbeing, Australian businesses have also been urged to prioritise sustainability as investors, stakeholders, business partners, employees, and consumers now prefer brands with solid sustainability practices.
