Risk Strategies embraces remote work aiming to attract a younger workforce

Before the pandemic, working in the insurance industry typically meant a 9-5 office job, which could be longer for some people. The majority of this time was spent in the office, commuting to and from work added an hour or even more to the working day.

However, as we all recognize, times and the definition of ‘the workplace’ have changed, potentially permanently. Working from home, or part-time (often referred to as telecommuting to avoid imagining someone attending a client meeting from their kitchen), is now commonplace in our industry.

When Karen Williams (pictured) joined Risk Strategies as part of the company’s acquisition of Krauter & Company based in New York, she may not have anticipated that the working world would be drastically changed by a global pandemic beginning in distant Asia. This pandemic triggered a tidal wave of remote work, prompting Risk Strategies to make significant adjustments to its workforce model by emphasizing remote work.

The shift towards remote work

In a unique interview with Williams, who is now a senior managing director at the top 10 private insurance brokerages, she revealed to Insurance Business that over 90% of the company’s private equity vertical now operates completely remotely.

“A few employees follow a hybrid model,” she informed IB, “but over 90 percent – maybe even close to 95% – are completely remote with a broad geographic footprint within the US.”

Originally, employees were offered the choice between full-time remote or in-office work environments.

“The remote work model has resulted in increased productivity and job satisfaction,” Williams pointed out. “It also offers more flexibility, especially for employees with caregiving duties. We have a number of working mothers who have been recently hired.”

This change is in line with broader trends in the US workforce, where remote work has become increasingly prevalent. According to a 2023 Stanford University report, 40% of US workers work at least one day a week from home.

Risk Services’ transition to remote work was fast following the coronavirus outbreak, and staff were given options about what they preferred to do.

“At the outset, we were primarily offered two options,” Williams elaborated, “and it was either fully remote or fully in office. So, 80% of the staff went fully remote. It was surprising. I don’t think any of us anticipated that.”

Among the remaining employees, while they chose to work in the office, they now tend to use a hybrid model more than full-time office work, according to Williams. “I would say they are more inclined at 20% to be hybrid. They’re in maybe Tuesday, Wednesday, Thursday or Tuesday and Thursday.”

The lingering question, however, is how the dispersed workforce impacts business growth and development.

“[The remote work feature] is a very appealing feature I find, and it does aid in our recruitment process,” explained Williams. “But I am not a full advocate of it…does it really last and contribute to the growth and development at the pace we would like to see? I don’t think so.”

Research supports some of Williams’ concerns, with another recent Stanford paper showing that any savings on commute time are more than offset by increased needs for meetings, distractions or other factors.

Filling the talent gap by targeting the young

With the impending retirement of a large number of baby boomers, Risk Strategies has already started to integrate younger professionals into the workforce. The company’s teams consist of members from multiple generations, promoting knowledge sharing and collaboration. Senior employees are tasked with mentoring junior associates, a critical part of the company’s strategy to bridging the talent gap.

“Our teams usually consist of boomers, Gen Xers, and millennials,” said Williams. “This structure encourages the transfer of industry knowledge while also allowing senior staff to learn from younger employees, especially in areas like technology.”

Teams are constructed around senior level employees, “They are given the responsibility of developing their junior associates as part of their roles,” she said. “It’s not an option, it’s part of the responsibilities, just like dealing or handling a client. They are also responsible for the growth of their associates. So, the teams are primarily structured at the senior level. You would have a boomer or a Gen Xer, and these boomers would be supported mainly by the millennials.”

The company also has several programs that are continually being developed. “It’s an ongoing process,” explained Williams. “Needs change and one has to evolve with that. So we have a number of programs for varying levels of talent and a program for future rising stars.”

“New hires are offered the opportunity to work for, say, six months in one vertical and then cycle