Power to the people

Professional development - a strategic business tool

In an increasingly competitive insurance marketplace where the costs of protecting - let alone growing market share and ensuring regulatory compliance - are escalating, what business has the time or money to consider the professional development of its employees?

While it may be easy to identify with this sentiment, take a look at your peers in your respective insurance disciplines. Of those you would identify as successful companies, consider their approach to professional development. It is likely they are actively pursuing a policy to encourage and support staff in the pursuit of professional excellence.

There has been a shift in mindset across the industry in recent years, whereby the training and development of staff is no longer seen as a 'bolt-on' to the business plan.

Rather, the professional development of staff is both seen and deployed as a strategic business tool, enabling the company to deliver against myriad business objectives and ultimately support revenue generation and profit creation. These companies have purposefully and successfully generated a culture of professional excellence and recognise its value. Loyal, highly motivated employees, intent on achieving personal growth and career development, support business growth.

We are all aware of the battle for talent which faces the insurance industry in recruitment.

While the respective industry bodies are uniting to address this challenge, the fact remains the poor reputation associated with our industry has been with us for many years.

We cannot expect to eradicate this overnight; unified, long-term commitment and drive is required. Employers have a part to play. By embracing a policy of professional development within our organisations, we enhance the reputation of the industry and our firms benefit from attracting better candidates and keeping talented people in situ.

The quest to attract the right candidates, against the backdrop of a less-than-illustrious industry reputation, can lead companies to overlook talent they have.

A company-wide policy of professional development, aligned with business objectives, can provide benefits. If knowledge is power, then we have untapped power sources within our companies if we fail to place training and development at the heart of our business.

Conversely, by harnessing the knowledge within the organisation and ensuring we share it as part of our development policy, the resulting impact on efficiency, productivity and service is unquestionable.

Organisations alive to these benefits are using structured mentoring and coaching programmes as a sophisticated method of enhancing professional development and achieving best practice in all areas of the business.

This form of training is also suited to the support and development of people skills - an overriding factor linked to a successful career in the insurance world and a key driver in achieving high standards in customer satisfaction as an organisation And what of our clients? It stands to reason that dealing with staff who are motivated, excel technically, have well developed people skills and are equipped and confident to make decisions, means their service experience will be of the highest standard. Service is often the only key differentiator left in what is becoming an increasingly commoditised market. If investment in the professional development of our people supports the delivery of exemplary service, then the return on that investment becomes apparent in the form of client retention, growth and attracting new clients by word of mouth.

Equally, we should not overlook the benefits of a professional training and development programme as a marketing tool. If we have invested in in-house training that meets industry standards, we can offer this facility to clients as added value and as a means of strengthening relationships.

A number of insurer and broker clients take advantage of AMG's in-house training facilities.

FSA regulation has required every organisation to ensure the competency of employees. While the administration associated with compliance can feel onerous, the principle behind the regulation makes sense. Who would not want the most technically competent people working within their organisations, when the benefits are clear? So, why is regulation necessary?

Following the pensions and endowments scandals, it is understandable consumers need reassurance they are dealing with a professional organisation and their interests are protected. If FSA regulation supports our reputation as a professional industry and we have a culture of professional excellence then, if we could get the regulators to streamline administration, we'd be laughing.

Speaking as loss adjusters, AMG recognises the loss adjusting profession is often at the low end of the food chain in the battle for talent. At the same time, there has been a dumbing down of the role played by the loss adjuster in the claims process. We believed we had a responsibility to our people, our clients and our profession to pursue technical excellence.

Hence in 2004 we launched our Training Academy, in order to engineer business success by developing home grown talent. Subsequently, our Intensive Trainee Loss Adjuster Programme received CII accreditation.

The starting point for our professional development policy at AMG was to identify future needs of the business. Analysis was undertaken across the organisation to assess the available expertise and skills gaps.

Placing training at the heart of the business and communicating the plan, allowed each employee to relate to the business goals and the part their individual development plays in reaching them. IT

- Val Barlow is associate director employee development and Malcolm Hyde is associate director training, quality and compliance at AMG.