The Workforce Revolution

© 2011 Work At Home Vintage Employees LLC

The Workforce Revolution

Sharon Emek, Ph.D., CIC

Work At Home Vintage Employees LLC20 Tower Lane, 3rf Fl

Avon, CT 06001www.wahve.com

646.807.4372


The Increasing Rate of Change

Agricultural Age 10,000 BC to 1700 AD

Information Age 1970 – 2010

This new virtual/connected/creative age will add to the challenges already being faced by insurance firms.


Changing Employee Dynamics

The aging of the baby boom generation along with declining fertility rates is changing America’s age structure. The number of people over age 65 will rise substantially beginning in 2011 as the oldest members of the babyboomer generation reach 651

About one in five Americans are age 55 or older and by 2030, one in five Americans will be 65 or older1

While the older population is increasing dramatically, America’s current young population has zero growth1

82% of the nation’s young population growth from 2005 to 2050 will come from new immigrants and their children1

The industry is predicting a 50% babyboomer retirement over next eight years

1 U.S. Census, Next Four Decades, May 2010


Challenges to Insurance Firms

36 % projected boomers population

with “zero” growth in young population

Generational work ethic differences

among Boomers, Gen X, Gen Y, Millennial

and future generations

Brain-drain of experienced,

educated and well-connected employees

Employers competing for the same labor pool &

lack of talent

Thousands of back-office processes completed by

highly paid staff

Challenges of a multi-cultural

workforce

Declining margins

Increasing staff costs

Constant new technology challenges


What Has Changed?

InsufficientLocal human capital


What does this mean for businesses?

This workforce revolution is challenging our current structure:• The way we view the workforce will have to change in dynamic ways –

from a closed, controlled community to an open, collaborative community and from production focused to creative focused

• The step-by-step, top-down command and control management methods we use to build monolithic firms will need to be re-thought focusing on creative output and relationships

• The linear fashion in which we design jobs will need to be transformed encompassing a variety of methodologies

• Once we adopt new technology, we never return to old technology and the impact that makes on:– the amount and type of workforce we need– how jobs should be done– who should do the job – where the job should be done

Management needs to see their world in 3D and focus on strategic workforce planning to optimize the value of their companies.


The Perfect Example of the Production ModelMost CSRs/AMs still spend a majority of their time on back office tasks.

Back Office Tasks 52%

Client Phone/Email Time 24%

Carrier Phone/Email

Time15%

Client Face to Face Time7%

CSR Time

Hig

h R

etur

n, H

igh

Val

ue

Low

Ret

urn,

Low

Val

ue

Rough Notes, “Foundations of Customer Service,” August 2005


How can insurance firms flourish in this new arena?

Need to re-define the work that needs to be done and the best methodology to get the work done

Need to consider a world with a combination of virtual and physical employees/offices

Need to identify the type of talent needed to do the work and provide the appropriate tools that will enable them

Need to maximize use of technological tools

Need to envision management styles, procedures and jobs that fit this new model, e.g., an open, collaborative

cultureNeed to create a sales model that maximizes the

virtual/social network world with the physical network world


How to Prepare• Parse out job descriptions based on high

value creative, customer contact and low value production work, not the position

• Re-name work positions to reflect this new approach, e.g. instead of producers use connectors, social networkers

• Re-assess your staff and align them with the appropriate type and level of work

• Effectively use technology, aligning it with human capital

• Enhance the quality and quantity of work by being open to flexible arrangements, e.g., job-sharing, telecommuting

• Consider firms that offer lower cost onshore, contract, knowledge workers and offshore process workers


The Right Job

The Right Skills

The Right Resources

The Right Moment

The Right Quantity

The Right People

The Right Price

How to Plan for the Staff You Need

Anywhere


Why is this different from what I do now?

Hir

ing

base

d o

n n

ew

para

dig

m

Hir

ing

base

d o

n o

ld p

ara

dig

m

• Stagnant Job descriptions

• Predominantly focused on process work

• Mostly present focused, not future focused

• Limited consideration for how to best utilize available talent

• Limited to local talent, which has been readily available

• Limited consideration for the streamlining capabilities of technology

• Production focused

• Dynamic, iterative job descriptions

• Focused on creative/relationship development

• Considers rapidly changing terminology

• Considers job sharing

• Considers insourcing & outsourcing

• Seeks talent wherever available at the right price

• Anticipates demographic changes

• Core staff combined with flexible staff

• Considers Generational and ethnic differences


What’s Available to Make This Model Work?

• Cost-effective and sophisticated remote/outsourced talent domestically and globally

• Productivity tracking software • Virtual training tools • Virtual meeting tools • VoIP / Internet phones• Dashboards with analytics and live chat• Exchange technology which simplifies client acquisition

and retention• Social networks/avatars• Smart phones, tablets, mobile applications


Overcoming the Fear of Outsourcing & Remote Workers

Drivers• Broader access to talent• Reduced cost• Increased flexibility• Moves account managers to front line• Shared risk• Increase resource availability• Greater efficiency/higher quality• Keeps business operating when disruptions• Maximum use of available technology

Inhibitors• Security & confidential

Information• Communication concerns• Fear of loss of control• Trust• Employee backlash• Loss of knowledge capital• Ability to physically supervise

Adapted from Gartner, IT Director’s Community of Practice, August 14, 2007


To Maximize the Use of Outsourcing & Remote Workers

Create a Paperless

environment

Employ Real time,

straight-through

technology.

Overcome fear of not seeing and managing staff in an

office

Trust that if the right

procedures &

technology are in place, people can

be managed anywhere any time


The value of any firm is in the Customer

• Firm’s resources should be set on “core competencies” where they can provide unique value for customers

• Think of what is not critical to insource & strategically outsource those activities

• Consider creating jobs/titles that match the generational and ethnic differences within the firm and with the customer

• Consider access to talent & consider offering talent the ability to work remotely if they need to

• Look to see where you have misemployed/misdeployed talent • Use technology to deploy the strategy


The Insurance Office of the Future

Lean in-house

highly paid knowledge and client focused

staff

Less physical human interaction

but broader cultural interaction

Flexible Contract remote

knowledge workers

Progressive supervision

balanced with technology

Outsourced process workLess real estate & overhead

Technology that tracks all

insourced and

outsourced staff for quality control


Organizations who do not adopt a more flexible management and staffing approach supported by technology and social networks will not keep or acquire talent. The fear of change inhibits innovation.

Think differently. Imagine the future!

The Workforce Revolution

Presentations & Public Speaking

Transcript of The Workforce Revolution