The Right Stuff

But one issue is decidedly front and center with him: Talent (with a very big "T")–how to find it, how to hold onto it, and how difficult both can be given the unfortunate reputation of the American insurance business, despite its demonstrable attractions.

"We've been very fortunate in building an organization that has been able to attract and keep highly energetic and intelligent people," he says of Hobbs. "We recruit on the college campus, put people through an appropriate training regimen, and move them out on the battlefield quickly, which is the only way to learn the business in the end."

(Hobbs also recruits–though to a lesser degree–through employee referrals, industry networking and Internet bulletin boards.)

"We stress the multi-layer interview process and psychological testing, as well as very specific job definitions, including psychological profiles of the ideal candidate," he says.

Though others on the distribution side opt instead to pirate existing talent from within the industry, "our general philosophy is to bring in talented young people and train them in the technical requirements as well as how to take great care of clients," explains Mr. Golub. "From the start, they work on teams with other professionals. We find this more effective than 'untraining' people steeped in an alternative culture."

To hear Tom Golub tell it, attracting good people to the business is still a difficult affair. Let's face it, he says, few parents dream of their children going into the insurance business, though things would be different if people had a fuller understanding of the opportunities the industry affords.

Recruiting, and recruiting at a higher level than in the past, is at least somewhat easier these days because of talent pools like the University of Georgia's risk management course and similar programs at Temple, Georgia State, the University of Wisconsin and The College of Insurance in New York.

"They're able to attract very bright people into these programs," he says, "and by the time they graduate, essentially they've made a commitment to the industry."

Curiously, Hobbs seems to have little competition on the nation's campuses. In fact, according to Mr. Golub, Marsh alone of the five-to-10 largest players on the distribution side has mounted a sustained college recruiting effort over the years. His best guess is that the others are focusing on growth by acquisition rather than organic growth.

Recruiting might be a continuing problem, but retention isn't. "If you're able to recruit talented people, generally you're able to keep them," he says. "Once you bring somebody in, they find it's a great industry."

Career growth and an opportunity to make an early impact seem to be particularly important to the type of people Hobbs employs. With Hobbs dealing mainly with companies with revenues of $500 million or greater, "our young people have early-stage opportunities to participate on the brokerage team with these large, complex accounts. This seems to provide a very important platform for career growth and job satisfaction."

And no, says Mr. Golub, "we've never lost anybody because they couldn't see opportunity easily enough–and that's relatively rare in an Old Economy business."

If they have the conventional ingredients for a good broker–strong communications, people, and time management skills, entrepreneurial assertiveness and, above all, a willingness to work hard–"they'll be able to accomplish a great deal early, early in their careers," he adds.

"I have a real passion about the industry," says Mr. Golub, citing in particular a great passion for creating opportunities–if for no other reason than the fact he was given a "no-glass-ceiling" opportunity when he was young and feels beholden to build his organization with that always in mind.

He points to Herb Kelleher, the management guru from Southwest Airlines, who, when asked how he consistently scored superior customer satisfaction ratings in an industry where that's far from routine, replied that it stemmed from Southwest's focus on recruiting the right people and creating a good environment for them. "If we get that right, everything else will follow," Mr. Golub quotes him as saying.

"I think we're probably closer to that theory than any other," he says. "If you don't have the right people, you can try to drive customer service all you want but it won't happen." He prefers the Kelleher script: create a rewarding environment for bright, energetic, motivated people and help them understand that the only way to reach their goals is to serve customers.

"If we get that right," says Mr. Golub, echoing Herb Kelleher, "everything else will be just fine".

And who could disagree with that?

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, August 20, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.

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