President Biden recently announced that all Americans will be eligible for COVID-19 vaccines by May 1. As we are getting “closer to normal,” returning to the use of office space remains a hot topic. Most of the insurers we have spoken with suggested that they will wait until Labor Day to decide on their future office work life. The next few months will be critical as insurers gather employees’ needs, analyze the feedback, and plan for the post-pandemic work environment.
Last week, Novarica hosted our Group and Voluntary Benefits Special Interest Group with a panel of insurance leaders. The discussion centered on return-to-office plans, talent recruiting/retention, and innovation in a virtual world.
Return to Office: Hybrid Models Shine
A year of remote work has given insurers an opportunity to understand employees’ work-life preferences and productivity. In general, insurers had a mindset that geographic “proximity matters” prior to the pandemic. Now, insurers show an increased interest in adopting a flexible, hybrid work/office model. Our panelists shared that they plan to categorize employees into three groups: those who will work full time from the office; those who will come to the office and work from home on some days; and those who will be remote full time.
As we were discussing hybrid models becoming an attractive option, one of the participants noted that the critical mass question will be interesting. It may be challenging to bring everyone into the conversation when a few employees are working remote while critical mass is back in the office. Insurers may also face challenges coordinating remote workdays for employees who choose to work from the office and from home.
The future of work may not just depend on a 40-hour work week. One possibility is a 3-2-2 model, where employees work three days from office, two days from home, followed by two days off. The focus of this model is achieving objectives set by self-organizing teams rather than by work hours. In a business world that isn’t dependent on large-scale capital investments, such as factory production lines, an array of organizing options which seemed improbable, if not impractical, only a year ago are now possible. This timing is helpful for companies now grappling with demographic changes taking place with surprising speed.
Post-Pandemic Talent Recruiting and Retention
The conversation on the return to office led us to a discussion about the impact of adopting a hybrid model on talent recruiting and retention. Many insurers have reported bringing in a higher caliber of candidates when geographic proximity is no longer a limiting factor. At the same time, retaining talent has become more difficult as the best employees may have more options to transition jobs.
It is likely that employees with key skill sets and experiences will expect a more flexible work environment in the post-pandemic world. Insurers need to keep in mind that not offering a hybrid or full-time remote option may lead to retention challenges or become a limiting factor in finding the best talent to fill specific vacancies.
Consistently looking for ideas to create employee engagement will be key to talent retention. In an increasingly virtualized world, finding ways to recreate “watercooler moments” and taking time to make personal connections will be important to building the networks that are part of any organization’s culture.
Innovation and Agile
One of our carrier participants raised a question on how to spark innovation in a virtual environment. The panelists agreed that the pandemic has led everyone to adjust to digital collaboration, and it has led to greater thought, inclusion, and ease of access. More people can be included in virtual meetings because there is no physical constraint of a meeting room. Leveraging the power of technology to get diversity of thought and feedback from employees has been the key driver of innovation. At the same time, the combination of the pandemic and the persistently low interest rate environment has placed a premium on shortening the time to value from operational investments.
Innovation is key for many carriers, but it has taken on more of a tactical focus than a strategic one. As a result, much of the focus has been on near-term improvements to existing approaches and operations. One of the panelists agreed that their company’s focus is centered on refining digital capabilities to deliver better customer experience.
Another panelist has seen a shift in thinking toward iterative delivery of value. There is a greater willingness to do pilots and to take a “test-and-learn” approach for initiatives than was true before the pandemic. The panelist shared that their company has achieved a high adoption rate by piloting a product to a small group of users and iteratively incorporating feedback to build toward a final offering.
While insurers can gain huge benefits from scaled Agile, insurers should keep in mind that Agile transformation is an organizational change. Automation, DevOps, cloud, and architecture go hand in glove with Agile as a methodology. Accountability and alignment with business are critical to successful Agile transformation.
The next Group and Voluntary Benefits Special Interest Group will take place on July 22.
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