Analysis: Delivering opportunities for graduates during the Covid crisis

The insurance industry appears to have bucked the national trend of a shrinking job market for graduates during the Covid-19 crisis, with almost all respondents to a survey by Post reporting stable or growing levels of recruitment and upbeat plans for the future. 

According to the Institute of Student Employers, the number of graduate jobs in the country dropped by 12% in 2020, the biggest fall since the financial crash of 2008 when the market contracted by 25%. ISE forecast that the best-case scenario for next year is another 2% decline. 

According to Michelle Ransome, lead talent acquisition partner at Zurich: “It was never a question that we were not going to run the graduate programme.” 

The insurer took on 23 graduates in September and plans to do the same for next year. 

“It is integral to have the graduates as a huge part of our development of work programme,” Ransome said. 

Working from home 

Despite the government’s instructions for people to work from home being issued in March, Covéa, like Zurich, did not rescind any offers. 

“Our strategy has been to bring in young people to complement the experience levels we have got within the business,” said Matthew Metcalfe, senior manager for talent acquisition Covéa. 

In his view lifelong learning and personal growth is the number one driver for employee engagement. “Being able to develop them at an early age, especially when they are used to continually learning and developing, helps you to retain your people,” he argued. And with ambitious growth plans the danger is when you stop a graduate programme it takes a long time to rebuild the pipeline afterwards, he continued. 

“You need to have people ready to go,” Metcalfe added, questioning: “Why would you want to risk switching something off now?” 

Across the board insurers were clear that graduates were a key part of an early career and talent strategy. They stressed that while other routes like apprenticeships are crucial too, without all the bits of the puzzle the jigsaw does not fit together. 

Direct Line Group delayed its September intake to January but communicated that throughout the recruitment process and has kept the programme running for those already on it, according to Jason Gowlett, director of HR operations. 

He said: “The easiest thing for us would have been for us to skip a year but we were absolutely convinced it was the right thing to do from a society point of view to continue with it,” he maintained. 

“It is a win for the organisation as well as these people are more likely to stay with us.” 

The business is keen on the skill sets that graduates bring in.

“We have a real desire to move the organisation to a digital way of working, this population has that embedded in their life,” Gowlett explained, adding that is why DLG spreads them across the company rather than having them in just one area.

The challenge for news starters in a virtual environment has had to be addressed.

Stephanie Ogden, HDI Global distribution director, said: “A lot of what I achieved as a graduate was going above and beyond and finding new ways to interactive with people, broadening my network.”

Ogden joined Allianz in 2008 on its graduate trainee scheme, staying with the business for a decade.

“When you are restricted to four walls and your laptop to communicate we need to be creative with how we support our talent and people coming through,” she said. “I’m sure I would have probably got there but it would have made it really difficult.”

Insurers acknowledged the issue and insisted that Teams and Zoom training had been carefully planned and segmented, along with steps taken to safeguard mental health 

and make sure new starters do not feel isolated.

In keeping with previous approaches, graduates have been given a “buddy” from the cohort a year ahead and mentors they can turn to, the only difference being the relationships are built online. The business leaders also pointed out that with senior management not travelling as much in certain ways they were even more available for calls and virtual-coffee meetings.

Embracing the situation

At Zurich, Ransome reported that graduates have embraced the situation and flagged that there had been challenges for line managers too.

“It is a different way of working and line managers have certainly had to adapt,” she accepted, praising the learning and development team for jumping into the situation. “They rolled out coaching and training sessions on how to manage a team virtually,” she detailed, listing modules delivered for the new way of working as including on handling difficult conversations via technology, one to ones and structured reviews.

Allianz had already completed its recruitment schedule by the time the pandemic struck in March. Jules Harrison, graduate talent manager at the provider, stressed that senior management had been very firm about the fact that there was never going to be a pause about going ahead.

“The hardest challenge was how can they have a true Allianz experience that we can really show the best of what we can do when they cannot join us in our office and meet us in person,” he conceded.

However, he stressed that with everything now being run remotely the provider is “confident that we can bring them on well”.

Retention rates for graduates across Allianz’s graduate schemes, which last two to three years, are around 80%. Julie Harrison, who joined Allianz as chief human resources officer in July, added the provider will be expanding its scheme. 

The topic was brought up in her first board meeting in August, she stated. 

“It was about securing the talent pipeline for both sides of the organisation,” she highlighted, pointing to the opportunities with LV. It will be looking to boost the scheme by 25% from its near 40 intake this year with recruits rotated between the two. 

Recruitment process 

The recruitment process for those that have traditionally timed it to start in September is well underway and has had to be done in a fully remote manner. The largest change has been to a traditional assessment day and the group exercises at the end ahead of a final decision. It has not been an overly onerous challenge for most who already had a hybrid of face-to-face and virtual assessment and interviews. 

For instance, DLG – which recruits in Spring for its three year rotational programme – is planning to recruit for September 2021 as normal having already used gamification as a psychometric tool for a couple of years. 

“It is also an engagement tool that keeps candidates in the process,” Gowlett observed. “By making the attraction process engaging we also see less dropouts.” 

Across the industry though the test is to make sure that as wide a range of people apply. 

Das runs a three-year graduate scheme for the law arm of the insurance business. Over the last four years it has taken on 19 graduates, 17 of whom remain with the firm. 

“Diversity and inclusion is something we are focusing on and will be a key focus in 2021,” said Sasha Leach, resourcing partner at Das citing different networks for women, BAME and LGBT+ among its offering. “We do our best to promote that,” she said.

Likewise Zurich is part of the Financial Services Skills Commission and working on a project about how to attract talent and change the narrative.

“I would be lying if said it wasn’t a challenge,” Ransome said. “It is a huge thing on our diversity and inclusion agenda.” 

It has advertised on diverse job web-boards, run webinars targeted at BAME and female applicants, is a sponsor of the Insurance Cultural Awareness Network and is linking with other networks to get its brand in front of a more diverse pool of candidates. 

“It is an ongoing conversation and work in process,” Ransome concluded. “There is still a lot of work that can be done.”