Insurance has fared slightly better in the area of recruiting promising talent than industries such as health care and manufacturing, which have struggled greatly in this area, according to Aon Consulting's 2008 Benefits & Talent Survey.

After surveying over 1,100 organizations nationwide across multiple industries, Aon Consulting found that 56 percent of employers are experiencing a leadership shortage that is currently affecting performance, and 31 percent expect to have such a shortage in the next one to four years.

The industries it found to be faring the worst in this respect include health care, with 62 percent reporting a shortage; professional services, with 58 percent; and manufacturing, with 57 percent.

A spokesperson for Aon Consulting said that 20 percent of those organizations comprising professional services were affiliated with the insurance industry.

Speaking to insurance by itself, Dan Russell, vice president with Aon Consulting, said that the industry seems to have gotten the leadership message sooner than industries such as manufacturing, but it is still lacking.

Mr. Russell said that insurance is doing a good job developing methods for talent recruitment and selection, but added that when it comes to developing talent internally, insurance is in the same place as other industries.

Mr. Russell also said that market realities, such as the soft market cycle, are preventing the insurance industry, and other sectors within financial services, from following through on education and training plans. Insurers, he said, are putting projects on hold across the board in this area.

Regarding the leadership struggles for businesses across all industries, Dan Hajjar, executive vice president with Aon Consulting, said in a statement that baby boomer retirements are having an impact.

"With a lack of leadership talent, an organization will face severe challenges in attracting new talent, easily developing and retaining current talent, and fostering the requisite thought leadership and innovation to grow the business. Talent management and leadership development programs need to be viewed as an investment, not as an expense," he said.

The Aon Consulting survey found that businesses in general recognize the importance of recruiting new talent, and training the talent they have, but that recognition has not translated to significant action as of yet.

Aon Consulting noted that 58 percent of respondents said workforce planning in light of demographic shifts and talent shortages is very important or extremely important, but only 21 percent of employers believe they are very effective or extremely effective at delivering this workforce strategy.

Special Reports /

Insurers Recruiting Talent, But Struggling With Training

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