Recently, Novarica Executive Vice President Rob McIsaac wrote about the new realities of the American labor force. Millennials now make up more than 50% of US laborers, and the third year of Gen Z is about to graduate from college and join them. While talented candidates are available to replace the Baby Boomers continuing to retire in increasing numbers, a recent Deloitte study found that organizations spend 50 times more on recruitment than on training.
Employers are also making their strategies for talent retention part of their organization’s overall knowledge management—and transferring that knowledge to the next generations. If incoming workers expect their employers to provide opportunities to develop their expertise, then continuous learning can create a competitive advantage for insurers. A few notable insurers investing in innovative training programs include:
Nationwide: The Future of Work
Nationwide recently announced its Future of Work program, a five-year, $160M investment in digital literacy and capabilities training. The Future of Work program will provide in-person and online instruction to all Nationwide employees. Each year, staff will receive a personalized learning plan tailored to their business unit and specific career path.
Prudential: Apprenticeships and Accelerators
Prudential is embarking on digital literacy and leadership training initiatives through a combination of apprenticeships and accelerators. Apprenticeships are six-month immersion programs, which are supplemented by modular training initiatives called accelerators. Accelerators are intended to work in tandem with apprenticeships specifically and with business units more generally, filling in gaps in knowledge on an as-needed basis. Prudential is also partnering with universities to enhance its talent pipeline and has created a $10M scholarship to help New Jersey students from low-income families attend university.
Cigna University/ERP
Cigna launched Cigna University, an online learning program that offers microlearning experiences intended to create changes in mindset, skills, and behaviors. Cigna also launched an Educational Reimbursement Program (ERP), which provides up to $5,250 per employee for undergraduate courses and $8,000 for graduate courses. A study of these programs showed that every dollar invested generated $1.29 in savings and that employees spent on average 30 hours in Cigna University and 29 hours on other learning pursuits.
Farm Bureau Financial: Stand-alone IT Intern Team
Farm Bureau Financial established BOLT (Building Opportunities through Leadership in Technology), a program that created a stand-alone Agile team of interns to solve real-world challenges with oversight from high-potential IT employees. The program has helped “market” Farm Bureau Financial to college students; positive social media responses have increased brand recognition. The self-service options enabled by the resulting mobile app are estimated to save $200,000 annually. This program was recognized with a Novarica Impact Award in 2019.
Investing in employee skills is key to bolstering productivity, morale, recruitment, and retention efforts, especially in IT. CIOs surveyed by Novarica frequently cite talent as a primary concern and challenge. Novarica has recently launched three new talent development programs: an executive development program in Insurance IT leadership with Brown University’s School of Professional Studies; an online learning course in the Foundations of Insurance Technology Strategy to help junior and mid-level staff gain a holistic understanding of the role of IT in insurance operations and business strategy; and the Novarica Women’s Network, a networking and mentoring program for women in insurance IT. Contact us to learn more about any of these programs.
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