With a serious shortage in talent happening within the insurance industry, carriers are straining under the weight of too much work and too few employees, a problem that will only deepen as more Boomer-aged insurance professionals head off to retirement.

Yet the industry has not addressed effectively the growing talent shortage. Understandably, insurers have focused primarily on attracting millennials to insurance careers. Still, in an era of global enterprise, too few carriers offer anything but a traditional, 9-to-5 in-house business model.

That’s a big deal, particularly to the millennials who are considering career options. A 2013 Odesk study reveals that 89 percent of millennials prefer to choose when and where they’ll work over a traditional 9-to-5 job. On the whole, 45 percent of millennials would opt for workplace flexibility over pay, according to a 2013 study by Millennial Branding.

Another factor impacting the employee shortage: How carriers are viewing their retiring and retirement-aged employees. Many retirement-aged workers are nowhere near ready to leave their careers behind. According to a 2015 Transamerica Retirement Survey, 82 percent of workers aged 60 and older expect to or are already working beyond age 65.

Ironically, what millennials want is also what older workers want. A report released by Shift: The Commission on Work, Workers, and Technology, reveals that older workers are more inclined to choose alternative work arrangements—freelance, consulting, and remote work.

Fortunately, carriers are beginning to recognize the wisdom in keeping the knowledge and expertise on the job a little while longer. By offering step-down or transitional retirement options, organizations can help their employees ease into retirement. By coupling such options with the ability to work remotely, companies can not only retain key talent, but also attract a wider pool of candidates.

Addressing the Misconceptions

While some carriers are incorporating into their operations a remote work model that includes retiring or retired insurance professionals, the industry has yet to fully embrace the potential that remote work arrangements can bring. Instead, there is a reluctance among carriers to address what they perceive to be insurmountable challenges that remote workers bring.

Those perceived challenges include the idea that remote workers are more difficult to manage. In truth, remoted workers are no harder to manage than in-house staff. While it does require some changes to one’s current operations, such as setting clear goals and expectations and following up regularly, managing a remote worker can be a seamless process.

Also, managers often believe communication with a remote worker is both difficult and sporadic. However, technology has made it quite simple to communicate with remote workers via video chats and messaging programs. In fact, a recent study conducted by employee feedback and engagement software provider 15Five reveals that 63 percent of managers, supervisors and executives say they are more actively engaged and communicative with their remote employees than with in-house staff.

The biggest misconception is that remote workers are less productive if they’re not within sight of their managers. The 15Five survey shows that 21 percent of employers have noticed improvements in both productivity and performance coming from their remote workers.

With so many of the roadblocks to engaging remote workers either easily overcome or nonexistent, carriers that opt to include remote workers in their employee mix have three distinct advantages. These advantages help decrease the backlog of work, increase efficiency, and improve competitive advantage.

Advantage One: Wider Talent Pool

By offering step-down or transitional retirement options, organizations can help their employees ease into retirement. By coupling such options with the ability to work remotely, companies can not only retain key talent, but also attract a wider pool of candidates.

When hiring a remote worker, companies can expand their search nationwide. With a wider talent pool, carriers are better able to secure that underwriter who specializes in special event underwriting or the property adjuster who understands brownfield exposure.

Also, a remote worker can be assigned specific tasks. By assigning that backlog of claim filings to a remote worker, carriers can free up in-house staff members for more customer-facing initiatives.

Advantage Two: Increased Productivity

A problem for all employers is lost productivity. According to the Centers for Disease Control, several factors impact productivity. Obesity and chronic health conditions costs employers $153 billion in lost productivity each year. Stress involving child care can cost $300 billion annually (Brandeis University/Catalyst 2006), and caregiving for older relatives $33.6 billion (AARP statistics/2012) adds to that total, as do tens of billions of dollars in excessive commuting costs (Urban Mobility Reports).

With a wider talent pool, carriers are better able to secure that underwriter who specializes in special event underwriting or the property adjuster who understands brownfield exposure.

Also, remote workers have far less downtime. A 2013 study by collaborative software company PGi shows that unscheduled absences cost $1,800 per employee per year, and that companies with a telecommuting program say they have 63 percent fewer unscheduled absences.

Advantage Three: Decreased Business Costs

Then there’s the cost to employers. According to GlobalWorkplaceAnalytics.com research, the average business would save $11,000 per year for each person who is telecommuting for half of a full workweek. For those employees who telecommute, the savings would average $2,000 to $7,000 annually. (The potential national savings to companies should people who had compatible jobs work from home half the time would top $700 billion each year.)

Also, remote workers require no equipment or office space. A full-time remote worker saves $10,000 per year in real estate costs, according to a PGi study.

Another benefit: lower salaries and benefit costs. Retiring and retired insurance professionals are eager to remain working, but often in support roles. They’re also willing to work without the expense of benefits.

The insurance industry is facing a very real brain drain as well as a significant shortage of talent. Carriers can alleviate much of the shortage by considering alternative working arrangements. By adopting a remote solution, carriers can help their retirement-aged workforce phase into retirement, and companies can keep top talent contributing until the next generation of insurance professionals finds its footing.

Retiring insurance professionals who have dedicated their careers to the insurance industry are not ready to walk away just yet. Savvy carriers that recognize that fact will do all they can to keep that knowledge engaged and on the job.