Investing in Your Employees - The Importance of Upskilling in the Insurance Industry

In today's fast-paced world, insurance firms are constantly facing new challenges and opportunities. To stay competitive and meet the demands of their customers, businesses need employees who are skilled and knowledgeable in the latest technologies, trends, and regulations. This is where upskilling comes in.

Upskilling is also essential to retain talent. According to a McKinsey report, employees frequently quit their jobs because they do not feel appreciated by their employers or supervisors. The study noted that a lack of opportunities for personal and professional growth, as well as unstimulating work environments, were significant contributors to employee departures. In a separate Gallup-Amazon survey, 65% of employees believed that employer-provided upskilling is a critical factor when considering new job opportunities.

Upskilling is the process of acquiring new skills or knowledge to improve job performance or advance in a career. This typically involves learning new technologies or techniques that are relevant to one's career goals. Upskilling can be done through a variety of means, such as taking classes, attending workshops or seminars, or through eLearning.

1. Enhanced Employee Productivity

Upskilling can significantly enhance employee productivity by improving their skills and knowledge. When employees are trained in new techniques and technologies, they can work more efficiently, make better decisions, and complete tasks more quickly. Upskilling employees can allow firms to bring new products and services to market.

2. Improved Customer Satisfaction

Customers are increasingly demanding personalised products and services, fast and efficient claims processing, and seamless digital experiences. To meet these expectations, insurance firms need employees with the necessary skills and knowledge to leverage technology and data analytics and deliver exceptional customer experiences. When employees are knowledgeable about the latest products and services, they can provide better advice and support to customers. Additionally, upskilling can help employees to handle customer complaints and improve the customer lifetime value.

3. Increased Employee Retention

One of the worst losses a business can suffer is the loss of knowledge and experience employees take with them when they exit a company. Especially with the highly competitive insurance job market, many firms cannot afford to lose good people. Upskilling current employees can make them feel appreciated and valued. This leads to increased loyalty and commitment. 94% of people in a Clear Company survey said they’d stay at a company longer if their employers invested in their careers. This investment demonstrates that the company is committed to their future and career growth, providing a sense of purpose and direction.

4. Competitive Advantage

The insurance industry is facing new risks and challenges, such as climate change & cyber threats, that require specialised knowledge and skills. Upskilling employees can help to build a workforce that is equipped to identify and manage these risks effectively which can provide insurance firms with a significant competitive advantage. When employees are trained in the latest technologies and techniques, they can help their companies to innovate and develop new products and services. If your employees have the relevant skills for emerging customer needs, you can strengthen your firms position in the market and be successfully positioned for the future.

5. Cost Savings

When employees are trained to work more efficiently and effectively, companies can reduce the costs associated with hiring new staff. Bersin & Associates Principal and Founder, Josh Bersin believes the cost of losing an employee can be 1.5–2.0x the employee’s annual salary. Upskilling employees can also lead to increased productivity and efficiency. When employees are trained in new skills and techniques, they can work more effectively and complete tasks more quickly, reducing the need for overtime and extra staff.

In next weeks article we will look at strategies insurance firms can implement to upskill employees.

Get started today upskilling your employees effectively!

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For more information about the Aviva Development Zone and to sign up for a free trial or a demo, visit www.mydevelopment.zone.