Bridging the divide… before it’s too late
Although there's a strong focus within the industry on recruiting Millennials and Gen Z talent, there's a growing apprehension that Generation X professionals, who play a crucial role in bridging traditional practices with future advancements, could be disregarded.
FAnews spoke to Thokozile Mahlangu, Chief Executive Officer of the Insurance Institute of South Africa (IISA) about this generation, the skills gap and more.
The “forgotten generation”
Generation X professionals serve as a crucial bridge, adeptly connecting the rich tapestry of past traditions with the swiftly evolving landscape of future innovations. Yet, amidst the clamour for younger talent, there is a risk that the unique expertise and perspective of Generation X professionals may be overlooked or undervalued, potentially hindering the industry's ability to navigate the complexities of both tradition and progress.
Stuck between Baby Boomers and Millennials, Generation X is often referred to as the “forgotten generation”, according to Mahlangu, as the insurance industry remains focused on attracting Millennial and Gen Z talent - largely forgetting that Generation X professionals are a vital link between past traditions and future innovations.
“This approach almost entirely ignores a whole generation of professionals who have been contributing to the industry for years and who possess invaluable skills and knowledge and should be the conduit between the past, present and future of insurance,” she says.
The potential knowledge gap
On a similar note, how can companies effectively prepare for the impending retirement of baby boomers and mitigate the potential knowledge gap they may leave behind? This is a critical question facing organisations as they navigate the demographic shift in their workforce.
Considering the value that Gen Xers can provide to their employers, a greater number of organisations should pay greater attention to this demographic, said Mahlangu.
“Gen X professionals are typically found to be self-sufficient, resourceful and individualistic. They tend to value both freedom and responsibility, while generally trying to overcome challenges on their own. So, while the insurance industry’s focus on attracting millennials and Gen Z is key to its future growth, the valuable experience and expertise of Generation X professionals must not be overlooked in this pursuit. With the industry edging closer to the retirement of Baby Boomers, it is becoming increasingly crucial to prepare and empower Gen X professionals to take the lead and steer the sector towards new heights,” she said.
A smooth transition of leadership and expertise
Succession planning, according to Mahlangu, is a key part of a business’s lifespan, but one that is typically overlooked.
“Business leaders should start planning for succession early to understand the implications of skills transfer and knowledge retention. A succession plan focuses on the future of the industry and dictates how the industry will transition to the next generation of leadership. It's crucial to have a clear succession plan that identifies the necessary capabilities and roles for leading companies,” she said.
“Companies should ensure the identified candidates receive the necessary training and development to assume leadership roles. They must be provided with mentorship and coaching opportunities to enable them to gain the requisite skills, knowledge and experience to succeed in their new role. Furthermore, current leaders should grant leaders under development an opportunity to bring their own flair of leadership,” she added.
Developing and nurturing talent
To ensure a smooth leadership transition and maintain expertise, investing in Gen X professionals' development and engagement is crucial, she added.
“Mentoring programs that enable retiring baby boomers to transfer their knowledge to these vastly experienced individuals can be invaluable. Due to the rapid advancements in technology, skill gaps may emerge which can be bridged with tailored training programs, this is as the sector must continue to invest in maintaining the strength and relevance of its Gen X professionals. These maintenance efforts should include recognition of their contributions, provide growth opportunities and adapt strategies suited to their unique needs and aspirations,” she continued.
Diversity and inclusion efforts
The importance of diversity and inclusion in talent management is critical for promoting innovation, enhancing employee engagement, and ensuring corporate success, according to Mahlangu.
“In order to fully utilise the potential of its workforce, an organisation must make diversity and inclusion a top priority. This includes implementing inclusive recruitment processes, offering a range of learning opportunities, and cultivating inclusive leadership,” she said.
“An age-diverse work environment comprises individuals of various age groups. Diversity defines the composition of a workforce. On the other hand, an age-inclusive culture fosters an environment where employees feel secure and wanted. Characterised by an atmosphere of belonging, an age-inclusive workspace encourages employees to stay authentic to the values of their respective generations,” she added.
Training, development and mentorship
Companies, according to Mahlangu, can develop more effective upskilling strategies by understanding how employees from different generations learn and adapt to new technologies and ways of working. “Tailored learning that is designed to match an employee's role, function, and skill level, and is linked to the practical application of those skills, not only connects with the employee but also has a lasting impact. This is true whether it is about reskilling experienced personnel or training those who have recently joined the workforce. Ensuring that skills development remains relevant is key to leading a multi-generational workforce and providing personalised upskilling programmes that meet learners where they are can assist to enhance the benefits of a multi-generational workforce.”
She added that mentorship is also a strategic approach used for the development of employees by pairing a mentee with a more experienced person who will teach, coach, counsel, encourage, share expertise and share resources.
“For mentoring to be successful, the unique culture and objectives of the organisation must be embedded into the programme. Typically, a cross-generational mentorship programme would pair participants based on their interests, skills and goals. These mentoring partners build meaningful relationships, share knowledge and provide support to one another through regular meetings and interactions,” she said.
Addressing the skills gap now before it's too late
South Africa’s insurance industry is confronted with several significant challenges, according Mahlangu.
“These include a workforce that is ageing, a lack of diversity and BREAK transformation and a shortage of skilled professionals. Yet, it is evident that the sector is unable to fill the talent gap from a shrinking pool of qualified candidates. Due to the knowledge-intensive nature of the insurance field, a severe crisis may arise from the skills gap in the next few years as highly skilled workers are needed to offer expert advice to customers. The industry may risk losing their edge if they do not address the talent crunch, leading to a vacuum in skills critical for the future of the industry revenue loss and market share decline,” she warned.
“To avert a crisis, the insurance industry will have to become more innovative and creative in efforts to attract and retain the next generation of insurance professionals,” she concluded.
Writer’s Thoughts
In light of the insurance industry's focus on attracting Millennial and Gen Z talent, it's essential to recognise the invaluable contributions of Generation X professionals as vital bridges between tradition and innovation. By investing in their development and leadership, organisations can ensure a seamless transition of expertise and address the looming skills gap effectively. Do you agree? Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts myra@fanews.co.za.
