Risk Strategies adopts remote work and targets younger workforce

Risk Strategies adopts remote work and targets younger workforce | Insurance Business America

Insurance News

Risk Strategies adopts remote work and targets younger workforce

Does remote work, work? And how do you get younger talent on board?

Insurance News

By
Matthew Sellers

Before COVID, working in the insurance industry was a predictable 9-5 (and for many of us longer). That time was almost exclusively spent in the office – reached with a commute in each direction, sometimes adding an hour or even more to the working day.

But as we all know, times – and what consists as ‘the workplace’ – have changed, perhaps for ever. Working from home, at least part of the time (now often referred to as telecommuting, probably because it keeps the image of someone perched at the kitchen island while attending a client meeting out of one’s mind) is very common in our profession.

When Karen Williams (pictured) joined Risk Strategies as part of the company’s acquisition of New York-based Krauter & Company, she had little idea that in just a few months the working world would be turned upside down by a global pandemic originating far away in Asia. That epidemic did sweep the world though and catalyzed the gradual work from home ripple to a tsunami – causing Risk Strategies to make significant adjustments to its workforce model, focusing on remote work.

Adoption of remote work

In a an exclusive interview with Williams, who is now a senior managing director at the top 10 private insurance brokerage, she told Insurance Business that over 90% of the company’s private equity vertical now operates entirely remotely.

“A few staff are hybrid,” she told IB, “but 90-plus percent – maybe closer to 95% – are a fully remote work remote with really a very wide geographic footprint within the US.”

Initially, employees were given the choice between fully remote or fully in-office work environments.

“The remote work model has led to increased productivity and job satisfaction,” Williams said. “It also offers greater flexibility, particularly for employees with caregiving responsibilities. We have a number of working mothers that are fairly recent hires.”

This shift aligns with broader trends in the US workforce, where remote work has become more prevalent. According to a 2023 report by Stanford University, 40% of US employees work at least one day a week from home.

Risk Services change to remote was rapid following coronavirus, and staff were given options on what they wanted to do.

“We were offered two options at the outset primarily,” Williams explained, “and it was either fully remote or fully in office. So, 80% of the staff went fully remote. It was extreme. I don’t think any of us expected that.”

Of the remaining employees, while they chose to be in the office, nowadays they tend to be more hybrid than full-time in the office, according to Williams. “I’m going to say they’re more inclined at 20% to be hybrid. They’re in maybe Tuesday, Wednesday, Thursday or Tuesday and Thursday.”

The question that lingers though, is what effect the dispersed workforce has on driving growth and development in businesses.

“[The remote work feature]is a very attractive feature I find, and it does aid in our hiring process,” explained Williams. “But I find that I am not a full advocate of it…does it really endure to the growth and development at the pace that we would like to see? I don’t think so.”

Research backs up some of Williams’ concerns, with another recent Stanford paper showing that any savings on commute time are more than offset by increased needs for meetings, distractions or other factors.

Addressing the talent gap with a focus on youth

With the upcoming retirement of many baby boomers, Risk Strategies has already taken steps to ensure that younger professionals are integrated into the workforce. The company’s teams are structured to include members from multiple generations, promoting knowledge transfer and collaboration. Senior employees are tasked with mentoring junior associates, a critical part of the company’s strategy to bridge the talent gap.

“Our teams typically include boomers, Gen X, and millennials,” said Williams. “This structure supports the transfer of industry knowledge while also allowing senior staff to learn from younger employees, particularly in areas like technology.”

Teams are built around senior level employees, “They are tasked as part of their responsibilities in the development of their junior associate,” she said. “It’s not an option, it’s part of the responsibilities, just like it is in taking or handling a client. They are responsible as well for the development of their associates. So, the teams are structured primarily at the senior level. You would have a boomer or a Gen Xer, and those are the boomers who would be supported primarily by the millennials.”

The company also has a number of programs that are constantly in development. “It’s an ongoing process,” explained Williams. “Needs change and one has to evolve with that. So we have a number of programs for varying levels of talent and an emerging talent program for the future leaders.”

“New employees are offered the opportunity to work for, say, six months in one vertical and then cycle through to another to give them exposure and help them define a path that is of interest to them that they want to proceed on.”

And is the scramble for younger talent working? The problem may not be perfectly solved yet, but things are getting better, according to Williams.

“I think we’re in a better place today,” she told us, “but I think there is still the need for more. There are really concerted efforts throughout the industry to support those initiatives of bringing in younger talent. I would say that, 10-15 years ago, and even before that, we were not an attractive industry to be a part of.”