By Artell Smith
Like many others, the insurance industry thrives on a foundation of skilled professionals who can adapt to changing markets, regulations, and customer needs. However, identifying and nurturing high-potential (HiPo) talent on any team isn’t just about spotting top performers but recognizing those who can grow beyond their current roles and drive the company’s future success.
So how can insurance managers strategically identify and develop HiPo talent to secure a strong, agile workforce?
Implement a Robust Performance Management System
Before diving into high-potential programs, managers must have a solid performance management system. In the insurance industry, this means having clear metrics and key performance indicators (KPIs) tailored to different roles—underwriting, claims, actuarial analysis, or sales.
A comprehensive system captures not only current performance but also indicators of potential, such as:
- Adaptability: Insurance is a highly regulated industry that frequently experiences changes in laws and customer expectations. High-potential employees tend to be agile and easily navigate new processes and regulations.
- Customer-Centric Focus: Top talent in the insurance industry consistently prioritizes the customer, displaying a strong commitment to understanding and meeting client needs. This customer focus is a hallmark of those with leadership potential.
- Problem-Solving Skills: The ability to navigate complex claims or underwriting challenges often sets high-potential employees apart. They see beyond the immediate problem and anticipate future needs or complications.
Use a 9-Box Talent Matrix for High-Potential Identification
The 9-box talent matrix is widely used to assess performance and potential. In the insurance context, this model helps managers evaluate team members based on two key dimensions:
Current performance, which measures how well the employee meets or exceeds role-specific expectations like sales targets, claims processing efficiency, and risk assessments
Future potential, which assesses whether the employee exhibits behaviors that suggest they can handle more complex responsibilities, lead teams, or make strategic contributions
Here’s a typical 9-Box talent matrix:
The 9-box model divides employees into three categories of potential and three of performance: low, medium, and high. Here’s how it can be applied (assuming the high-performance row on the 9-box):
- Low Potential: These employees excel in their roles but may lack interest or the capability for broader responsibilities.
- Medium Potential: These employees show promise but need further development.
- High Potential: HiPo employees consistently exceed expectations and align with future leadership.
For more information about the 9-Box model’s uses and limitations, see More on the 9-Box Talent Matrix.
Differentiate Development Opportunities for HiPo Talent
One key to nurturing high-potential talent is differentiated development. This means tailoring growth opportunities based on an employee’s designation as HiPo rather than offering a one-size-fits-all approach.
In the insurance industry, this might involve:
- Advanced Leadership Programs: HiPo employees gain from targeted training, including executive mentorship, cross-department projects, and industry-specific courses.
- Stretch Assignments: Challenging projects, such as involving an underwriter in a new product launch, help HiPo talent build skills and broaden insights.
- Access to Senior Leadership: Mentorship or project sponsorship with senior leaders, such as shadowing a regional manager or attending strategic meetings, accelerates HiPo growth.
Apply Engage.Coach.Develop. (ECD)
The ECD framework is highly relevant in identifying and nurturing high-potential talent, especially within the insurance industry, where roles are often complex and client-facing. Here’s how each component applies:
- Engage: Build trust with HiPo employees by involving them in strategic discussions and seeking their input on key organizational issues, such as streamlining claims processes.
- Coach: Use coaching techniques to help HiPo employees solve problems and enhance critical skills, like client negotiation and risk assessment, through open-ended questions and guidance.
- Develop: Create personalized growth plans with clear goals, such as completing certifications (e.g., CPCU) or leading cross-functional projects, to prepare HiPo employees for leadership roles.
Cultivate a Culture of Feedback
A key aspect of nurturing HiPo talent is creating an environment where feedback is continuous and constructive. In a fast-moving industry like insurance, feedback shouldn’t be limited to annual reviews. Instead, establish a culture where employees receive regular, specific input that helps them course-correct and grow in real-time.
For high potentials, feedback should focus on areas where they can stretch their skills and take on new challenges. To structure feedback sessions and provide clear guidance on what behaviors to stop-start-continue to maximize their development, use the brag, worry, wonder, bet method.
Invest in Your Future Leaders
Identifying and nurturing high-potential talent is a strategic investment in your company’s future. When you focus on developing HiPo employees, you’re not just enhancing individual careers—you’re strengthening the entire organization.
With the right mindset and approach, you can turn potential into performance, ensuring a bright future for your team and your company. Get started with professional development that will help your high potential employees develop the skills for future responsibilities.
Artell has extensive experience in human resources management, advising and focusing on overall people strategy, talent management/development, and compensation/benefits. He has led transformative projects across all aspects of HR work globally, including talent development, generalist services, operations, technology, and global sourcing. Artell currently serves as principal and managing director of WatchWorks Management Consulting LLC. He has also authored two books, “No Time to Waste” (April 2023, iUniverse) and “Engage.Coach.Develop” (October 2023, iUniverse).