Survey: Talent
Replenishing the pool
Re/insurers have been vocal in their commitment to hiring young talent in Bermuda, which is especially important as the baby-boomers retire in increasing numbers. Bermuda:Re+ILS asked readers to share their thoughts.
When re/insurers talk about the experience of doing business in Bermuda, the same themes often arise. One is praise for the Bermuda Monetary Authority and how approachable and willing to engage with business it is.
“The company that enjoys the returns from that investment in a young person may not be the same company that made the initial investment.”
Another that comes up almost as often is the enviable pool of experience and talent that exists in the Bermudian workforce. One respondent to this survey pointed to a depth of talent that is available in Bermuda at all levels, from actuaries and underwriters to middle office and executives.
“Bermuda has arguably one of the deepest talent pools in the world with respect to the risk market,” she said.
In a sense, to hire young talent—in other words, inexperienced talent, fresh from school, full of enthusiasm and potential but without specific skills gained by spending time working in the re/insurance industry—is to ignore this pool. Others would argue it is, more accurately, a necessary replenishment of the pool, to ensure all those drinking from it maintain access to the clear, life-giving water it contains.
“Giving young Bermudians good jobs ensures ‘a vibrant economy, talented workers and individuals with spending money in their pocket’.”
Traditionally, re/insurers have looked to find a balance when staffing their operations in Bermuda, bringing talent to the Island from operations elsewhere and supplementing that with locals. As the industry continues to grow, however—the number of re/insurers in Bermuda is on the rise again, after years of consolidation caused a decline—competition for talent in Bermuda has increased.
Figure 1:
How easy is it to hire experienced staff in Bermuda?
There was considerable divergence of opinion about how easy it is to hire experienced staff in Bermuda (Figure 1). While more than a third of respondents (36 percent) took the noncommittal middle option, 29 percent said it was very easy, compared to 28 percent who said it was not so easy or not at all easy.
The experiences of different institutions will vary depending on a number of factors, with a relative scarcity of experienced executives already based on the Island making them a valuable commodity and enabling them to gravitate to the most prestigious or highest-paying institutions.
Whether it is to mitigate a shortage of supply in talent, or as a way to cement stronger bonds with the local community, many re/insurers have made increased efforts in recent years to hire more local Bermudians.
William Wharton, head of Argo Insurance in Bermuda, spoke for many in the industry when he questioned the tendency of some institutions to bring people to the Island from London and elsewhere, rather than training up young locals to do it.
“If someone can demonstrate they are intelligent and hard-working, they could easily be trained to do the job,” noted Wharton. He said many job specifications were originally composed years ago as an excuse to hire from outside Bermuda, including requirements that could only be met by hiring abroad to justify a work permit application.
Today, many job specs are copied and pasted from old ones, but the job requirements that are carried over each time are out of date, he said, and act as a barrier to entry for Bermudian youth.
Figure 2:
How committed are you to hiring young talent in Bermuda?
A large majority of respondents to our survey expressed enthusiasm for hiring young local talent in Bermuda, with more than four out of five describing themselves as either extremely or very keen on making such appointments (Figure 2).
There were some dissenting voices, however, with 10 percent saying they were not that keen, and another 4 percent even more vehemently opposed to making such appointments.
This points to some of the challenges that re/insurers face when offering jobs to young Bermudians.
Figure 3:
What is the biggest challenge when hiring young talent in Bermuda?
Respondents highlighted a number of challenges that can potentially complicate the decision for those looking to hire candidates, even if they have the best of intentions when it comes to hiring locals (Figure 3). The biggest of these, cited by 32 percent of respondents, is the challenge around talent retention: put simply, the risk that one company hires a bright young employee, only for him or her to defect to a competitor once a certain amount of experience has been gained.
There is a cost associated with hiring a young and inexperienced employee, but the number of respondents who cited this expense as a problem in itself was a much smaller 8 percent.
It appears that this investment would be a relatively easy one to justify if there was a guarantee that the employee would stay with the company for many years to come. Absent that guarantee, the concern is that the company that enjoys the returns from that investment in a young person may not be the same company that made the initial investment.
Nearly 30 percent of respondents cited issues around the quality of candidates who are available for entry level positions, with one respondent calling on Bermuda’s education system to do more to identify appropriate candidates—those who excel in maths in particular—early, and to tell them more about what a career as an actuary would entail.
Related to this, another 23 percent said they do not receive enough applications from candidates who would be suitable.
Only 6 percent of respondents feel the heat of competition emanating from re/insurers overseas. That suggests Bermudian institutions probably have a relatively clear run at the best graduates and high school leavers for entry level positions, or at least those who are interested in careers in this industry.
Figure 4:
What is the biggest advantage of hiring young talent?
With a clear majority showing some desire to invest more in local young talent, the question is what do re/insurers hope to gain from it? What is the appeal of hiring these relatively inexperienced youth, the potential pitfalls of which have already been discussed?
The biggest advantage, according to respondents, is also the most obvious: they are relatively cheap (Figure 4).
That left 57 percent of respondents citing other factors as the biggest advantage for hiring young talent, with 21 percent citing loyalty as the driver. That is an interesting observation in light of the concerns about defections to rivals highlighted in the previous question, suggesting some executives at least expect young employees to recognise the investment that has been made in them, and for that investment to be repaid.
Another 13 percent of respondents noted that young people can be infused with the culture of a company more easily than can employees hired from competitors, which is one downside that comes as part and parcel of hiring people who have more experience.
One respondent saw such hires as a form of window into the future. Having a cadre of Bermudians at a company gives its management “the opportunity to learn and listen to what the future leaders of the Bermuda insurance industry think, need and are willing to sacrifice,” the respondent said.
Another respondent highlighted the sense of corporate pride that comes with hiring and developing young talent, likening it to a sports team bringing players through a youth academy, rather than buying stars off the shelf.
Another stressed that investing in young individuals is tantamount to investing in the whole island and the industry’s future there. Giving young Bermudians good jobs ensures “a vibrant economy, talented workers and individuals with spending money in their pocket,” the respondent said.
Figure 5:
What characteristics do you look for in young talent?
The number of respondents who cited impressive grades as the principal consideration when hiring young talent was tiny, with the ability to interview well also low on the list (Figure 5).
The majority of respondents emphasised a number of other factors that take precedence. Two-thirds of respondents said the biggest factor they look for is some evidence of the candidate showing initiative, while another 21 percent said they look for specific evidence that the candidate has shown some interest in the industry beforehand.
One respondent noted that when you can find a candidate with a genuine interest in the industry, you can be confident they are destined for great things. “When work does not feel like work then you have an all-star talent,” the respondent said.
