Tag: employee retention

Retirement plans’ impact on recruiting and retention in the public market

Mary Pat Campbell

Link: https://reason.org/commentary/retirement-plans-impact-on-recruiting-and-retention-in-the-public-market/

Excerpt:

A number of conclusions regarding the retirement plan’s impact on recruiting and retention can be drawn from the MissionSquare survey results:  

Recruiting and retention should not be looked at as a singular issue. While public employers have seen steady success in hiring, retention has suffered greatly in recent years in the public market. 

The survey does not make the case that an employer’s retirement plan, whatever the design, has a substantial impact on recruiting or retention at all. In fact, the survey shows employers are more focused on employee morale, development, and engagement to enhance retention, along with salary increases. The survey does not suggest that there is a widespread recruiting issue although some positions, including nurses, engineers, and police officers, are more difficult to hire than others. 

Plan sponsors should avoid treating retirement plan design only as a tool for retaining employees. Rather, they should focus on a retirement plan design that realistically meets the needs of a modern workforce. The retirement plan should focus on providing lifetime income in retirement commensurate with the part of a career that an employee spends with a particular employer. The plan should recognize the realities of mobile modern employees and should not penalize employees that do not spend a full career with one employer. 

The survey illustrates that employers are focused on employee wellness as a means to improve retention. It follows that keeping employees happy should also be the focus of the retirement plan. Retention is best addressed by having a retirement plan that addresses the realities of the workforce today, as noted above.  

Author(s): Richard Hiller

Publication Date: 9 Aug 2022

Publication Site: Reason

The Great Attrition is making hiring harder. Are you searching the right talent pools?

Mary Pat Campbell

Link: https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/the-great-attrition-is-making-hiring-harder-are-you-searching-the-right-talent-pools

Graphic:

Excerpt:

Despite significant changes in the economy since the onset of the Great Attrition (or what many call the Great Resignation), the share of workers planning to leave their jobs remains unchanged from 2021, at 40 percent. That’s two out of five employees in our global sample who said that they are thinking about leaving in the next three to six months.

However, the past year has revealed nuances of the larger trend:

Reshuffling. Employees are quitting and going to different employers in different industries (48 percent of the job leavers in our sample). Some industries are disproportionately losing talent, others are struggling to attract talent, and some are grappling with both.

Reinventing. Many employees leaving traditional employment are either going to nontraditional work (temporary, gig, or part-time roles) or starting their own businesses. Of the employees who quit without a new job in hand, 47 percent chose to return to the workforce. However, only 29 percent returned to traditional full-time employment.

Reassessing. Many people are quitting not for other jobs but because of the demands of life—they need to care for children, elders, or themselves. These are people who may have stepped out of the workforce entirely, dramatically shrinking the readily available talent pool.

Author(s): Aaron De Smet, Bonnie Dowling, Bryan Hancock, and Bill Schaninger

Publication Date: 13 July 2022

Publication Site: McKinsey

Ten Most Dangerous Risks for Insurers

Mary Pat Campbell

Link: https://mcusercontent.com/991483cca1a8e7eb050cff8bd/files/7dfc14f1-eaa5-5658-64a3-54f5c5e1955f/1Q2022_SRSE_Dangerous_Risks.pdf

Excerpt:

This year we had record participation with
over 250 insurance professionals taking part.
This is the fifth iteration of this poll and 2022
shows some consistency along with some very
new risks. Inflation, Employee retention and
Ability to hire new employees are three new
risks to the top of this poll, but they should
not be surprises.

….

2. INFLATION
Up very sharply – Previously #52
Prices are rising faster than they have since the
1980s in most of the developed world. Insurers
will be hit with a double whammy as the real
value of invested assets decays and the cost of
doing business and claims costs increases at the
same time.

EMPLOYEE RETENTION
Not on the list previously
The Great Resignation makes the headlines.
COVID seems to have accelerated the timeline
for the inevitable wave of Boomer retirements.
Also concerning are the numbers leaving due to
health care burnout and caregiver
responsibilities. The problem for insurers is
figuring out how to respond to the massive loss
of experience.

Author(s): Actuarial Risk Management

Publication Date: Accessed 8 Mar 2022