attracting and retaining top talent in the surety business ... · attracting and retaining top...

Washington DC June 2019 1

Attracting and Retaining Top Talent in the Surety

Business….some thoughts

FILE 2019056

Paul Farrar


Credit & Surety

Privatization of the Irish State Export Credit Insurance Scheme

Head of Trade Credit Allianz Ireland

Coface Credit Alliance network

Management Committee of ICISA 2004-2006

Country Manager Ireland – Euler Hermes

MGA with partner Advent Insurance DAC

Leading credit rating advisor in Ireland

Surety hub of partners

Setting the scene


Surety is largely a local business

Surety different in each market

$15 Billion global business

Supports international trade, construction and infrastructure development

Many countries there is no surety business

In others it is too small to make a career

So why would someone choose Surety over Banking or other major sectors?

Let’s explore and see if we know…….

1. Causes

2. Market perception

3. Remedies

http://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwjKsZ-Yw7viAhVStHEKHWY-B-wQjRx6BAgBEAU&url=http://roughnotes.com/surety-bonding/&psig=AOvVaw1fU6EHz7yEz1IJo_jMquM6&ust=1559039917426149

Lack of new talent?


Why else on the ICISA agenda?

We each know local concerns

Experienced underwriters are crafted…..not purchased

Retirements of experienced people

New technology

Transfer out of Surety to Banking etc.

Glass ceiling

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwiJqqnxyKziAhWxUxUIHVM3DVwQjRx6BAgBEAU&url=https://writinginspiteofmyself.wordpress.com/2016/07/18/ive-hit-my-head-on-the-glass-ceiling-and-i-dont-even-have-a-job-yet/&psig=AOvVaw1GCDRiMugbFT4ntm1ektcT&ust=1558526173982531

The good old days


One man band

Effective

Labour intensive

But underwriter close to risks

Things got done

Reinsurers happy on experience

Most important…clients wanted it this way

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjQ7euli6ziAhWhVRUIHUslAAcQjRx6BAgBEAU&url=https://www.123rf.com/photo_16872593_one-man-band.html&psig=AOvVaw0ZJhIlnxZ0M_PJzVLS9PXB&ust=1558509713471379

Things changed


‘Older’ people retired

New technology….can a computer kick a tyre?

Graduates were leaving

Other sectors appeared more interesting

Dilemma…one boss (career 20+ years)

Created poor ‘sense of purpose’ environment

Result was best were leaving after ‘internship’

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwicgOWW4MXiAhVSVBUIHd_5DbgQjRx6BAgBEAU&url=https://twitter.com/bryce_edwards/status/983793039620505600&psig=AOvVaw048iqjGmDRIPaUc8l2f-H-&ust=1559391472161117

Value people


https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwie9Z2EjaziAhU8SRUIHeW4A2kQjRx6BAgBEAU&url=https://www.gapingvoidart.com/gallery/show-me-a-sense-of-purpose/&psig=AOvVaw3a8i3bSKUFy_iFQ63HZucT&ust=1558510089231045

How could things improve?


Sense of purpose…pick the winners early

Role variety

Income progression ….not 2% p.a.

Share in the successes ….praise

Meeting clients regularly

Inputs to senior management thinking

Best ideas come from customers and staff

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwiX06uejaziAhU2QhUIHcNoBBMQjRx6BAgBEAU&url=https://dummr.wordpress.com/2016/08/03/ziggys-career-path-comic/&psig=AOvVaw2U63DKBRJnOilw4afi_LpG&ust=1558510240847682

Silos


Work in large organisations

lowering costs

cogs in a machine

Developing fully-rounded experts often discouraged

artificial intelligence can’t kick or sell

Clients still want experts to manage their business

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwjM5ve9jKziAhVDURUIHcFGAroQjRx6BAgBEAU&url=https://the16percent.com/2014/02/14/thats-not-my-job/&psig=AOvVaw0nfleMqs-vqSbH6kCiwPRQ&ust=1558510016934384

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwiEk87Px6ziAhWxUxUIHVM3DVwQjRx6BAgBEAU&url=https://www.industryweek.com/change-management/why-do-silos-form-and-how-can-we-knock-them-down&psig=AOvVaw2-RSxwTz17rrgzNeYCGwzo&ust=1558525669922117

Why choose Surety?


My personal selection process

Industry that seems to……

1. value unexceptional

2. Invest technology to cut costs

3. Not enhance the capabilities of all its professionals

4. Puts customer second?

5. Value sales over underwriting and claims handling

6. cuts professional development budgets when market gets soft

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwiHqcP4jqziAhXgThUIHYEXChIQjRx6BAgBEAU&url=https://www.pinterest.com/pin/429671620670828736/&psig=AOvVaw3QJh5o2TgkbfgrvrPFzHNP&ust=1558510637515714

Surety sector positioning


Creates huge credit value in economy

Surety rates much better than Credit

Surety vital to project success

We create huge benefit in underwriting approach

Our people create many jobs

In short…taken for granted

Yet virtually no one knows about us

Yet Credit gets more publicity

Yet project views us as a simple commodity

Yet no one knows the extent or value

Who cares?

Our services undervalued

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwjugrWW07PiAhVZTxUIHSY0C9QQjRx6BAgBEAU&url=https://www.pinterest.com/pin/591941944748708089/&psig=AOvVaw14qmlk0W8eP0M_akDIudqb&ust=1558769506711418

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwjW99jK07PiAhUGQRUIHXd2BW4QjRx6BAgBEAU&url=https://www.art.com/products/p15063371629-sa-i6846668/charles-barsotti-take-my-advice-roberts-and-hide-your-light-under-a-bushel-new-yorker-cartoon.htm&psig=AOvVaw3DgGohv5ztr-yUFTeJNhMd&ust=1558769625809159

What do young people want?


Several key items:

sense of completion

mentoring, ongoing professional training and development

part of a vibrant team

solving complex and challenging customer problems

Have we asked them?

Today’s generation has other values

Different work/life balance, working from home, etc.

Technology / social media

Why not ask them the type of career they want?

How might we find out?

Why not do a survey on among young professionals both in ICISA and outside our industry?

Could cover their career expectations, job satisfaction, remuneration etc.

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwiErr3y1rPiAhWORBUIHTnhBaQQjRx6BAgBEAU&url=https://www.freepik.com/free-vector/flat-young-people-social-media-like-concept-background_4142520.htm&psig=AOvVaw1rkXKju1TdxwvkTI2uWVSj&ust=1558770472209639

Attract new talent?


Surety is not insurance….viewed that way

insurance industry today is not viewed as a growth industry

Little innovation

Labour-intensive and capital-intensive.

Highly regulated business, competitive, generating modest profits.

Portray a positive image for Surety

Talents needed……

http://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwj1kozYxbviAhUWRxUIHe-RAuEQjRx6BAgBEAU&url=http://www.cndajin.com/group/talented-clipart/&psig=AOvVaw0hJt4Awy3JzgbyIF7vZQW5&ust=1559040696577056

Make it interesting…not like this


https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwi-ianFwrviAhU1VRUIHU1wBrwQjRx6BAgBEAU&url=https://www.wwisinc.com/&psig=AOvVaw1fU6EHz7yEz1IJo_jMquM6&ust=1559039917426149

Make it interesting…like this

Variety Challenges


Projects

Clients

Complexity

Risk

Analysis

Marketing

Sales

Great career challenges

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwiL_Y2y77viAhWgUBUIHY7zCksQjRx6BAgBEAU&url=https://www.irishexaminer.com/breakingnews/business/heathrow-cost-thrusts-dublin-airport-plan-in-spotlight-823373.html&psig=AOvVaw3fG4nryT6rXDapS4zcONhX&ust=1559051228690809

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwiHhamO8LviAhXCrHEKHbZsASUQjRx6BAgBEAU&url=https://surety1.com/bond_info/customs-bonds/&psig=AOvVaw0ylVHCkbzW-LPRthMrfi-c&ust=1559052177446902

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwiOxseq8bviAhXnQhUIHV19B5QQjRx6BAgBEAU&url=https://www.shutterstock.com/video/clip-10287644-successful-business-executives-shaking-hands-each-other&psig=AOvVaw2M1Iy9T7Y2by_HTSKY_d0a&ust=1559052507404484

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwisrOTf8bviAhVltnEKHd7uB-IQjRx6BAgBEAU&url=https://www.forbes.com/sites/mikekappel/2018/04/04/how-to-encourage-employee-involvement-in-decision-making/&psig=AOvVaw0D1cpo7imX5tFcfgfDNClp&ust=1559052602233542

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwih8Meu8rviAhVEXRUIHfaqC9MQjRx6BAgBEAU&url=https://www.freepik.com/free-photo/high-five-business-people_1369161.htm&psig=AOvVaw2iJx61xi3Y14Vw3nM6yt5S&ust=1559052753772520

One idea….mentoring


https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwil74WUjKziAhXiQxUIHf3-BfsQjRx6BAgBEAU&url=https://www.boredpanda.com/mother-bear-cubs-animal-parenting/&psig=AOvVaw16vH9ney_Wr8ppUB0ZByLA&ust=1558509943321041

One idea….mentoring


One idea….partners hub


Find current, retiring, enterprising Surety experts

Jointly commit to developing Surety book

Supported by a common:

IT platform

Reinsurance

Regulatory

Capital support

Accounting

Grey Panthers

In effect a new form of MGA platform but with more control at the centre.

The local executive………share in business / build portfolio / develop the next generation

USP


Avail of our experiences

‘grey hair’…Advisory Board of former ICISA members

Alliance of partner countries

Pooled experience

Team feel….we all need to be connected

Success……

1. Be disruptive

2. Rethink your audience

3. Use insights, tests, optimise

4. Get personal

5. Build shared value

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwi_1db9pL7iAhUJShUIHQTpBbIQjRx6BAgBEAU&url=https://www.amazon.com/Happy-Silly-Jolly-Animal-Cartoon/dp/B06Y13LMPZ&psig=AOvVaw1uxnqtvsaBLX3bnIskbAjy&ust=1559135081478601

Mentoring


There are no restrictions on how many mentors you can have

Different people can provide different value at different

Mentor relationships can be as formal or informal as you want.

Mentors - unforeseen challenges / save you both time and money / valuable peace of mind.

help you evaluate which opportunities to pursue and which to pass on.

Great mentors teach you ‘how to fish’ rather than just providing handouts

Sometimes a great mentor is just someone that helps you think differently

Seek out people who believe in you and your capabilities

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwjNy6izpL7iAhXEShUIHZdzB9EQjRx6BAgBEAU&url=https://www.123rf.com/photo_9701520_cartoon-of-old-man-with-a-walking-stick-isolated-on-white.html&psig=AOvVaw3dWkK4Txb0-rYcNda8AWuy&ust=1559134905956566

https://www.google.ie/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=2ahUKEwjyxqTUpL7iAhUOTBUIHZT-DmYQjRx6BAgBEAU&url=https://scubasanmateo.com/explore/cane clipart elderly/&psig=AOvVaw1tNnyVCIsbE3PA-Ac89Uez&ust=1559134987270782

Summary


Need to assess in more detail

1. causes

2. Marketing perception

3. Ideas

4. Other

Entrepreneurship ……can be a hard, lonely place

Tip 1: Make your own luck

Tip 2: Never Stay Still

Tip 3: Be careful when and how you use praise, but

use it lots when it’s really due

Tip 4: HR is your problem and your gold mine.

Engagement matters

Tip 5: Leaders do both the walk and the talk

Tip 6: Great ambition is achieved with small steps

Tip 7: Marketing can be cheap

Tip 8: Don’t forget shit happens to the best of us

Tip 9: Pay attention to people. They matter

Tip 10: The Client can tell people you are great or

terrible. Which will it be?

attracting and retaining top talent in the surety business ... · attracting and retaining top...

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