Over many years as an insurance executive and board participant, one question regularly surfaced in management discussions: whether the organization had a meaningful strategy for corporate, departmental, IT, and overall business staffing needs.
Organizations often maintain succession plans, individual performance reviews, and development programs. Those practices are important, but they are not the same as a true enterprise staffing and talent strategy. A broader staffing strategy helps the company identify critical positions, determine successors, close skill gaps, and plan for the talent required over the next three to five years.
A true enterprise staffing and talent strategy is designed to identify and address the staffing structure and talent resources needed to support the business as it executes its overall business plan. It is not a one-time exercise. It is a continuously evolving process that emphasizes long-term workforce needs and the organization’s ability to pursue or develop the skills required going forward.
Insurance executives have voiced concerns that staffing and skill gaps can create significant barriers to moving the business forward. For example, organizations may delay or avoid critical automation projects because they lack the necessary talent.
The staffing strategy should receive the same focus, rigor, and application as the core business strategy. Insurance staffing and talent have been in a long-term crunch, and continued technology advancement means many roles will change significantly over the next decade.
The recent pandemic also forced companies to change operating models quickly. Remote work, e-commerce, digital adoption, and employee movement across industries placed additional pressure on staffing plans and retention strategies.
If staffing is considered an important business asset, companies should manage it with the same discipline used for other major business functions. That requires a viable, ongoing enterprise talent and staffing strategy.
Core Components of the Strategy
The plan should include four major components: a hiring strategy, a retention strategy, a training strategy, and an exit strategy. Hiring helps determine when to go outside the company. Retention identifies high achievers. Training creates the educational infrastructure needed to keep staff current in technical and soft skills.
The exit strategy has two purposes: identifying employees who may be considering leaving and identifying employees who are not capable of making the projected skill or talent transition. It should also include a schedule of separation and a plan to preserve experience and institutional knowledge.
4 Steps to Developing an Effective Staffing and Talent Strategy
Define the Business Strategy and Company Goals
Understand the organization’s short-term and long-term goals. The staffing strategy should be fully aligned with those objectives.
Establish the Current Talent and Staffing Landscape
Inventory employee skills, competencies, job duties, potential for upskilling, and readiness for future roles. Compare current talent to open positions and future requirements.
Identify Staffing Needs
Determine the skills, experience, competencies, resources, number of staff members, and timelines required to achieve business goals.
Review the Strategy Regularly
Treat the staffing strategy as a living business plan. Monitor it, adjust it regularly, and secure commitment across the organization.