The aging insurance workforce challenge
The governance committee’s call to management succession development
WHITE PAPER |
According to global management consulting firm McKinsey & Company, one-fourth of the insurance industry’s workforce will retire by 2018. The shortage in the talent pool will lead to intense and competitive recruiting efforts, as organizations vie to find their next leaders. These challenges are not just concerns for an organization’s senior leadership team, but also for the governance committee, as executive positions are often the most difficult to fill. Organizations, along with their governance committees, must be more strategic about how they plan for these looming labor shortages. Management succession development is a strategic risk and a critical business process. Key to this effort, the governance committee should ensure that management succession development is:
- Incorporated into the organization’s business strategy
- Implemented with continuing commitment from all stakeholders
- Integrated as a component of the organization’s corporate culture
The governance committee’s charge
Management succession development should not be a topic that is only discussed every few years at an organization’s strategic summit. Management succession development is a continuous process that is integral to an organization’s long-term business strategy. Its effects on an organization’s operations are so far-reaching that management succession development should be included in an organization’s enterprise risk management program. As the governance committee reflects on its organization’s current practices, these are a few questions that each director should consider:
- Is a talent pipeline part of our business strategy?
- What are the organization’s employee retention policies and practices?
- Is management succession part of our business continuity program?
Read the entire white paper to learn more.