A Failure to Communicate

When I first graduated from college, I was offered a position as a claims adjuster trainee. Although it was an interesting learning experience, I chose to leave after I received my first promotion. I created this fictional case study as a result of some observations I made during the time when I worked for "Acme" Insurance Company.

What are your thoughts about how the company might have communicated to potential recruits during the interview process and then communicated to trainees once they were hired to avoid "wash outs" and a very high turnover rate?

Becoming An Insurance Claims Trainee

Acme* Insurance Company representatives typically recruit on college campuses during the winter and spring of each year. The initial contact with potential recruits occurs at job fairs held on different campuses. At this initial encounter, seniors who are interested in becoming a claims professional at Acme are exposed to a ten minute video on the company and get an opportunity to talk with the recruiter. Students may fill out an application on the spot and leave it with the recruiter.

The selection process at Acme is highly competitive. The company is interested in candidates who have the right academic preparation, demonstrated leadership ability, strong communication skills, a high GPA, and at least two years of work experience (part-time is considered). In addition, Acme looks for candidates who have been involved in some type of community service or other volunteer work. Promising candidates who will be graduating at the end of the term are invited for initial one-on-one interviews held on campus usually one month after the job fair. Those candidates who pass the initial screening interview are invited for a structured interview conducted by a three-team committee at local branch of the company. The most promising candidates are invited to a third interview at the company. At this interview, the candidates are given a series of tests that measure analytical and problem-solving abilities. Those candidates who do well on these tests are scheduled for a final interview with the branch manager. This entire process may take up to two months to complete.

Once the new graduate is hired, they are immediately sent out of state to a three-week training program along with other new recruits. During this training period, the trainees learn about Acme values, company policies and procedures. Primarily though, the new trainee learns about the rules and regulations that govern the industry and the claims adjuster role. Trainees also participate in a number of “high stress” simulations dealing with auto accident or loss claimants. About 10% of the trainees “wash out” during the first three weeks of training.

When the trainees return to their branch offices, they are paired with a mentor (a senior claims associate) as they start assuming a caseload of files to assess and close. If the trainee does well, he/she may become a full claims adjuster associate within one year. Approximately 35% of all new trainees make it to full adjuster status within the first year. The process is highly competitive.

To become a full-status adjuster, the trainee must not only demonstrate competence by closing a high volume of claims while making reasonable claims (dollar) decisions to accomplish this, they must also do so with a minimum amount of complaints. Further, they must show that they can work well with others, demonstrate a consistent positive attitude, and always communicate as an Acme professional.

All trainees (along with all other adjusters) in the branch attend quarterly meetings to discuss expectations and progress. Claims stats are shared at this time. Trainees are aware of how their “stats” compare to other trainees.

Trainees receive their first formal performance review at nine months. Claims supervisors seek feedback from the trainee’s mentor and other adjusters. The trainee is also asked to complete a self-appraisal. The supervisor uses a category rating system and his/her own observations in addition to stats that the trainee produced during the first nine months. In addition, the supervisor reviews the trainee’s self evaluation and the narrative and checklist submitted by the mentor and others.

As many “want-to-be” claims adjusters soon come to realize, stats are important in the review / promotion process. If the adjuster’s stats are not good, he/she will not be promoted to full status. However, even with good stats, trainees quickly discover during the review process that others’ perception of their “soft skills” such as teamwork, communication ability, etc. can heavily influence whether or not they are promoted.

*not real name