Tag Archives: bureau of labor statistics

How to Embrace Workforce Flexibility

Because of the economic crash in 2007, many people were left scrambling for work, any work.

Those who were determined, but still came up short, looked inward to their skill sets and assets to find relief.

The answer quickly became obvious; what is now referred to as the flexible workforce or sharing economy, is made up entirely of freelancers and independent contractors.

This new group of freelance workers now makes up more than 35% of U.S. workers and earned more than $1 trillion last year.

This information is found in a recent survey, “Freelancing in America: 2016,” which was published by Upwork, one of America’s largest freelance workplace platforms.

The Gig Economy: A Brief Introduction

The gig economy is a term that describes a portion of the U.S. economy that is made up of freelancers. It is often used, interchangeably, with “sharing economy,” “collaborative consumption” or “access economy.”

This growing army of gig workers has become an integral part of the workforce, available on an on-demand basis.

This has allowed innovative businesses to pivot and remain nimble. Indeed, in an era where consumers are increasingly more interested in access over ownership, flexible workforces have become powerful tools for businesses.

Although many believe this segment of the workforce may be a fad that will soon to be diminished when unemployment numbers eventually plummet, a closer look at available data indicates otherwise.

Reportedly, the gig economy has grown every year over the past five, and there are solid indications that this trend will continue.

See also: 9 Impressive Facts on Sharing Economy  

What the Feds Report

Well, they haven’t quite caught up yet – although they’re getting there.

The labor experts in D.C. minimize the gig economy by referring to gig workers as “contingent workers” (any position not expected to last longer than one year).

The feds report that that this segment makes up about 4% of the total workforce.

Looking more closely, however, one can easily determine that the most recent survey numbers used by the Bureau of Labor Statistics refers to data accumulated more than 10 years ago.

I don’t feel like we need to delve into why that’s an issue, correct?

How the Gig Economy Is Growing

The gig economy continues to increase as traditional companies look for solutions to workforce issues.

Although “outsource” is a term that consumers and traditional employees detest, no one has a problem with a temp in the workplace.

But when you use the word “outsource” (which is what a temp employee is), many Americans think of good American jobs being sent overseas where workers will work for pennies on the dollar.

The gig economy is growing because entrepreneurial gig workers now have the means to share with others how they can become freelancers and realize their dreams of being self-employed.

Platforms such as Upwork, Airbnb, Uber, TaskRabbit, WeGoLook and many others seamlessly connect this new freelancer class with those who have paid work available.

This entire process is all facilitated by innovative mobile technology and apps.

What’s not to love about that?

It’s certainly not for everyone, but for those who even feel a mild burn of the entrepreneurial spirit, they can use their skills or assets to become part of the gig economy.

Why The Gig Economy Is Growing

The gig economy (flexible workforce) continues to grow because America needs it to grow.

Companies can access skilled on-demand workers for one-off or continuing tasks.

Thanks to on-demand worker platform, businesses can now access expert freelancers to perform critical functions that are temporarily needed.

According to Jobshop, nearly one-third of B2B companies plan to hire gig workers over the next five years.

Further, a report by Fieldglass indicates that 95% of B2B companies not only understand, but recognize, the need to incorporate the gig economy into their business models.

The American workers are changing. Many regard employment as a job totally unrelated to what their life goals may be.

Goals that were formed in their minds at a young age and continue to burn deep in their hearts.

Even highly skilled workers earning terrific incomes imagine what it would be like to do what they love to do rather than what they have to do.

Although born out of necessity, gig work has become a compromise for millions of hard-working Americans.

Freelancing allows them to choose to do what they love and what they are best at. It provides the flexibility to work the hours of their choice, spend more time with family and become highly skilled experts in a field they love.

Embracing the Flexible Workforce

The insurance industry can embrace this growing flexible workforce made up of skilled freelancers in a number of ways.

For starters, insurance carriers can use skilled gig workers to create efficiencies across many channels in their organization.

Although major insurers have embraced technology, they continue to fumble the ball streamlining their processes and supply chain.

Similar to the federal government, large insurers have many layers of bureaucracy that at times put the breaks on workflow, innovation and even communication.

The result typically frustrates the consumers they have committed to serve.

In the digital age where consumers crave access, convenience and timely services, cumbersome policies and bureaucracies will fade. Quickly!

Areas that need rethinking and refocus are those where consumer interaction is critical.

Communication

There are many critical areas of communication that need not be assigned to full-time workers.

These tasks are generally performed on-demand and for specific reasons and following certain events.

Using a skilled freelancer who can be available on an as-needed basis for a short period makes more sense than using a highly paid (when you consider compensation plus benefits) full-time employee.

See also: Benefits: One Size No Longer Fits All  

Claims

Streamlining the claims process is a priority for every insurer because it’s not only a profit-earning department, it has many functions considered menial to an experienced licensed adjuster.

Tasks such as consumer visits, picture taking, damage verification and more could easily be assigned to a local gig worker.

Why maintain a network of thousands of field employees nationwide when you can access hundreds of thousands of on-the-ground gig workers when you need them?

Although claims activity can be forecast to a certain degree, many insurers are caught off guard with the arrival of events such as a natural disaster.

This often leaves carriers scrambling to recruit independent contractors, who sometimes are unwilling to perform many of the tasks that a freelancer can provide.

Marketing

Because marketing is about communicating with various market segments, it makes sense to contract with gig workers who specialize in that particular demographic.

For example, millennials communicate differently than Generation Xers, who talk differently than Baby Boomers.

Although each category can have similar insurance product needs, they prefer to learn about it, and make the purchase, in different manners.

Whether you are an agency or an insurer, outsourcing your marketing needs to a gig workers can make more sense than loading your payroll with different personality types so that you can accommodate the preferences of the various market segments.

Or, many companies are electing to leverage gig workers to augment their current full-time staff. Gig work isn’t a full-time or part-time discussion – they can be complimentary.

Whether you designate this growing on-demand labor force as the flexible workforce, gig economy, freelancers or outsourcing, there is no doubt that this workforce can provide skilled on-demand workers to the insurance industry.

These are workers who are doing what they know best and are passionate about.

Principals in the insurance industry should look to this flexible workforce to streamline processes that affect consumer satisfaction and save payroll dollars in the process.

As the gig economy continues to grow as a viable employment alternative for many, traditional insurers can get ahead of the curve by leveraging them and embracing flexibility.

Why We Need a Consumer Bill of Rights

As common as insurance is, most people do not understand this complex financial instrument.

According to the Bureau of Labor Statistics Consumer Expenditure Survey (2014), insurance is a consumer’s fifth highest monthly expenditure behind housing, transport, food and pensions. For many Americans, if you add up all types of insurance (auto, health, etc.), monthly total premiums can surpass housing costs.

But the insurance industry has its fair share of participants (companies, agents, wholesalers) who thrive on complexity and make sales that do not fit the client’s need. There has been a tendency — especially with annuities, life insurance and long-term-care insurance — to introduce insurance products with more options. And each time an option is added, it becomes more challenging to understand that product.

Often, this complexity is not a matter of intent; it is simply that even those within the industry or those who participate in the insurance procurement and review process (third party advisers such as financial planners, CPAs, etc.) do not understand insurance. The majority of people and companies do a good job, but there is a significant gap in insurance literacy in this country.

See also: Best Insurance? A Leadership Pipeline

The Insurance Consumer Bill of Rights was created to provide simple, easy-to-understand guidelines for everyone involved in the insurance ecosystem, including consumers, insurance agents, wholesaler, insurance companies and financial advisers.

The Insurance Consumer Bill of Rights is based on the simple premise that insurance agents, wholesalers and companies should place the consumer’s interests first, to the best of their abilities. The Insurance Consumer Bill of Rights provides simple, clear and reasonable guidelines to accomplish this goal. It is a standard of excellence for all in the insurance industry.

The importance of this movement is that, for many years, insurance has been a black box, something people know they need, although they have no real, unbiased information about it. And most people do not have the right coverage to fit their needs.

In my 30-year career, starting as an agent before making the transition to a fee-based insurance consultant/litigation consultant/author/consumer advocate, I have seen that the situation behind the scenes is often not pretty. However, the majority of these situations could be avoided if all members of the insurance industry followed the Insurance Consumer Bill of Rights.

Insurance consumers should have the right to receive any information that they request in a timely fashion. They should also be provided with all relevant information needed to make a decision in an easy-to-understand fashion. The goal is to not flood the consumer with something like a mutual fund prospectus; rather, it is to provide them with useful information.

It is always a win-win situation when all parties come out ahead and are on the same side of the table. Truth always has a way of coming out, and, to get ahead in this digital world where there are fewer secrets and more information and choices, those who strive to provide the highest-quality service and information will thrive.

See also: Fast and Slow: the Changing Landscape

For many years, consumers have ended up with insurance they don’t need, with premiums they either cannot afford or really see no value in paying. It is time to change the conversation so that consumers end up with coverage that fits their needs, with premiums they can afford into the future.

The Insurance Consumer Bill of Rights is a playbook for consumers, agents and companies to follow that puts everyone on the same page.

Monitoring an insurance policy and making adjustments to an insurance portfolio is something that is almost always overlooked. Insurance needs change. Sometimes, the change is as simple as getting a new car, while other times it can be more complex and overlooked, like having a new child who is not added as a beneficiary to an existing life insurance policy.

This is where the Insurance Consumer Bill of Rights matters. Making these adjustments, just like having regular maintenance done on your car, is what will ensure that a consumer has the right coverage in place at the time of making a claim. If the right coverage is not in place at claim time, what is the point of having insurance?

While it is not a panacea, and there still would be bad actors and inappropriate sales, the Insurance Consumer Bill of Rights is a call to action and gives guidance to consumers on what to look for, what to expect and what they have the right to.

Knowledge is power, and the power should be in the hands of the customer. Having and knowing your rights will protect and benefit consumers, along with calling the insurance community to task when needed and helping consumers and agents optimize insurance coverage and minimize premiums. Join the Insurance Consumer Bill of Rights movement!

The Insurance Consumer Bill of Rights movement is gathering momentum, and I want to thank all of its supporters. Recently, the Insurance Consumer Bill of Rights has received numerous mentions in the press:

  • Featured Article: It’s Time for An Insurance Consumer Bill of Rights — a reflection on how the Department of Labor Fiduciary Rule is a pre-cursor to the Insurance Consumer Bill of Rights.
  • As part of a joint effort with Chris Huntley’s Whole Life Rebellion that called for signing the petition, Forbes.com’s Barbara Marquand stated: “Sign the ‘Insurance Bill of Rights,’ a petition created by Tony Steuer from InsuranceLiteracy.org. Among other things, the bill says agents should act in consumers’ best interest and recommend affordable and appropriate coverage. (Click here to view the article.)
  • In an article on PTmoney.com titled “The Truth About Whole Life Insurance — Ethical Obligations and the Insurance Consumer Bill of Rights), it states, “Doctors take the Hippocratic oath and financial advisers the fiduciary oath. These are ethical codes professionals swear to live by in the execution of their duties. As of today, the life insurance industry has no such code, which is a travesty. Tony Steuer (InsuranceLiteracy.org) has created the Insurance Consumer Bill of Rights on Change.org, which seeks to implement a similar code of conduct in the insurance industry requiring all agents to act in the consumers’ best interest. The desired result would be agents targeting consumers’ specific needs to provide them with the most affordable and appropriate life insurance for their unique circumstances. Insurance agents should be held accountable for the advice they offer.” (Click here to read the article.)

And that is just some of the talk. So, what’s the next step? Please continue to share the campaign via email and on social media. And you can now contribute to the Insurance Consumer Bill of Rights movement through the petition page on Change.org, or you can support the Insurance Consumer Bill of Rights movement on Indiegogo.

Find Your Voice as an Insurance Agent

“If you talk about what you believe, you will attract those who believe what you believe.” Simon Sinek.

Recent data from the Bureau of Labor Statistics estimates that there are 374,700 active insurance agents in the U.S. alone.

How can you as an agent find a way to stand out in the highly competitive arena?

It starts with finding your voice.  Microphone

When I say finding your voice, I don’t necessarily mean your tone quality, pacing or vocabulary.

I’m talking about the language you speak to yourself, BEFORE you speak it to the world.

It begins with your inner voice.

How do you speak? Not just the words, but the voice you project.

Your voice is a statement and picture of your character, your poise and your persona. It is a statement of belief, confidence and personal power.

So how do you make your voice authentically yours?

  • When you do what you believe in
  • When you do what you are passionate about
  • When you work in your chosen field
  • When you find your calling
  • When you discover something you were born to do

The Myth of Chasing Success

I love talking with motivated insurance producers. They have big goals and dreams and work with fearless energy.

I often hear about chasing success.

As the late great Jim Rohn stated, “Success is not to be pursued, it is to be attracted by the person you become.”

The point is that chasing or pursuing success is a daunting task. Where do you even start?

It starts with becoming a better you and with your passion for personal growth.

When you grow personally by working on your skills and development, you will attract others by finding your unique voice.

As your belief system, confidence and passion develop, so does your internal and external voice.

If you want to stand out and be noticed in among the crowd of 374,700 other insurance agents, start by looking within.

Broader Approach to Workplace Violence

With the recent terrorist attack in San Bernardino, CA, fresh on people’s minds, workplace violence has received major media coverage, but little to no attention is paid to deaths by suicide even though rates in the U.S. have gone up considerably in recent years. Suicides claim an average of 36,000 lives annually, and, while most people take their lives in or near home, suicide on the job is also increasing.

The Bureau of Labor Statistics reported that workplace suicides rose to 282 in 2013, the highest level since the numbers have been reported. In 2014, the suicide rate went down slightly to 271, but that is still the second highest level. The annual average number of suicides deaths that occurred at work during the time period 2003 – 2014 is 237, for a total of 2,848. Since 2007, the numbers have been above the average.

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Source: U.S. Department of Labor, Bureau of Labor Statistics, Census of Fatal Occupational Injuries

The rise in suicide rates at work is even more significant given that overall homicides in the workplace have been steadily decreasing since the mid-’90s.

The obvious question is: Why is this startling rise in suicide rates at work occurring?

“The reasons for suicide are complex, no matter where they take place,” said Christine Montier, CMO of the American Foundation for Suicide Prevention. “Usually, many factors are at play.”

Many suicide prevention experts linked the increase in one way or another to the Great Recession. I believe the recession played a major role because it put a triple whammy on people. Housing, which has traditionally been the major investment and retirement source for Americans, was in the toilet. Foreclosures were at an all-time high. Companies were laying off people, and job prospects were slim.

I believe that many working people experienced daily stress about employment. Every day, they might be laid off. Many were severely overworked because they needed to pick up the slack caused by reductions in workforces. They faced continuous fear of taking time off for vacations or illness and had few options to leave because jobs elsewhere were scarce.

Put all these issues in the pot together, and some people could not see their way out of their dilemma except through suicide.

Researchers in a study published by the American Journal of Preventive Medicine suspect that suicides occur at work because the perpetrators wanted to protect family and friends from discovering their bodies.

In the midst of the fear of terrorist attacks and active shooting incidents, organizations are significantly challenged in how to deal with the spectrum of violence they may face. However, it is critical that organizations not shy away from addressing these issues and muster the resources to engage their employees.

Managers need clear guidelines on healthy approaches to manage and prevent violence in the multiple forms it can take. Two industries that have taken the issue of suicides at work head-on are construction and law enforcement.

What can management do?

Promote awareness

Stop thinking and acting like “it couldn’t happen at your company.Provide regular communications through the channels that are most effective in your company regarding the potential warning signs that employees or others are at risk of acting in a violent manner. See a list of the classic early warning signs of workplace violence here. Many of the signs are also telltale signs symptoms of depression and suicidal behavior.

Sally Spencer-Thomas, Psy.D., co-founder of Working Minds, a Colorado-based workplace-suicide-prevention organization, described a giveaway that’s more obvious than one might suspect: The employee will tell you.

When contemplating suicide, a person can be entirely consumed by the thought, she said. The problem may be coded in conversation—the individual may talk about death often, for instance.

As uncomfortable as it may seem, it’s important to bite the bullet and ask the awkward questions. “It is very hard to resist a human who is coming at you with compassion,” Spencer-Thomas observed. She suggests that HR professionals frame their questions in an understanding manner, giving the employee the opportunity to explain his or her condition. Statements such as, “I’ve noticed that …,” “It’s understandable given …,” and “I’m wondering if it’s true for you…” should be followed by a nonjudgmental statement.

Promote resources available to help employees

If your firm has an employee assistance program (EAP) or your healthcare provider offers counseling service, make sure that managers are trained about the program and skilled in how to make an effective employee referral. If your employee usage rates are below your industry average, you need to assess why and take action to increase usage. Talking to a professional counselor can make a big difference to a troubled employee.

If your firm does not offer an EAP, then identify community resources that can assist your employees and keep the list current.

HR should also have a strategy to deal with the devastating impact of a homicide or suicide at work.

I believe the time has come for executives to take a comprehensive approach to violence that occurs in the workplace and especially to bring mental health and suicide issues out of the closet into mainstream workplace conversations. We are past the point where organizations can think of suicide as a dirty little secret and hope it will go away. The time has come for meaningful action.

Don’t wait until something happens and people lose their lives. If you really mean that your employees are your most important asset, now is the time to step up.