Barry Schwartz’s “The Paradox of Choice: Why More is Less” is one of those seminal reads that seems to be even more relevant today in financial services, than when it was originally published in 2004.
In it, Schwartz critiques the very heart of Western culture – the idea that in a free society, we have more choices than ever, yet we’ve never been less happy or satisfied. From this platform, he uses this concept to explain a number of feelings that are typical of our current world – such as the feeling of being ‘connected’ (via technology) but less able to ‘connect’ with people (or at least experience it in the same way as we did pre-technology) and the rise of depression, anxiety and general feeling of dissatisfaction, which he sees as, in part, a result of increased choice making people more likely to place blame on themselves when something goes wrong, or isn’t as they expected.
At the core of Schwartz’s argument is the idea that with more choice, we are more likely to either be paralysed (by too much choice) or disappointed (as we will always think that we didn’t make the best possible choice). This is an idea, that as recruiters, resonates with us profoundly – in fact, we see it every day when it comes to hiring and building your team. But how? Let’s take a look.
#1 Choice
When you decide to hire, you have a choice. Taking aside any specifics on the ‘supply’ levels of the type of hire you are trying to make in the market (easy to find or hard to find – supply vs. demand), the fact is that people are more ‘available’ these days due to social media and online platforms. Which makes the perception of choice – at least on the surface – much larger when it comes to hiring. This is especially relevant at the senior end of the finance market. If you are hiring for a Head of Finance, you will likely have a high supply of candidates – resulting in, guess what – a massive amount of choice.
#2 Decision
Which, as Schwartz would tell us, can lead to paralysis. Faced with high levels of choice, decisions become a lot more difficult to make, as we become fixated on either the fear of making the wrong decision, or on the lure of making the ‘perfect’ hire. Like Schwartz compares the quest to find the ‘perfect’ pair of jeans, during the process of realising there is so much choice, the risk is that your initial expectations may become heightened to such a degree that only ‘perfect’ becomes the right answer.
Take this supply away – and the choice becomes easy to make. For example, if you’re recruiting for a more junior role you’ll likely only have 2-3 to choose from. With a senior hire, you could sit there and interview for days.
#3 Timing
This leads me to our last point. Paralysis caused by too much choice doesn’t only lead you to question your decision, it leads you down to road of potentially missing out on what you wanted in the first-place – due to delayed action. Again, this is a situation experienced quite a lot at the senior end of the market, where candidates may lose interest or trust in protracted recruitment processes. Even at salary levels where there are less roles (lower demand), the strongest candidates will always be hired quickly – so if you leave it too long- you may not have the choice you initially thought you might.
What’s the takeaway here? Understand the paradox of choice. It may seem like you have more choice, but be careful to use it sensibly, and don’t let it paralyse you. Be careful not to translate choice into a quest for that all too illusive ‘perfection’. And finally, be cautious of timing – this is the factor that de-rails the benefits of choice – so act with speed and don’t let delay become the cause of your recruitment woes.
We’re the experts in financial services recruitment in Ireland: From our offices in Dublin and Cork we work on financial services jobs at all levels, partnering with FS talent and world-class FS teams nationally. If you’re a financial services professional seeking opportunity or an FS leader looking to attract new talent, our experts can help. So get in touch with our team today on hello@barden.ie. Simple.
Phelim Murray, Senior Associate & Expert in Insurance Careers with Barden, takes a quick glance back over the last few quarters which shows two themes making an enormous impact in shaping the insurance industry as we know it. Those two themes are of course technology and M&A activity.
1) M&A is here to stay:
From a recent survey of over 200 C-suite insurance executives conducted by Deloitte, 75% agree that M&A will provide over 50% of growth throughout EMEA in the next 5 years.
Rock bottom Interest rates have certainly played a part in bringing private equity (PE) companies to the table who are keen to acquire and invest In specialist brokerages throughout Ireland. On the flip-side to interest rates being low, specialist brokerages are typically well governed as they are of course answerable to the Central Bank, and they are in most cases profitable and indeed scalable. So as far as investments go, they are low risk and likely to conform with the ambitious plans of your typical PE investor.
Recent M&A Activity
- Aon has agreed to buy Willis Towers Watson for $30 billion, creating the world’s largest insurance broker. Retaining the name of Aon, and being headquartered in London, the new company – worth $76 billion – will be 63% owned by existing Aon shareholders.
- Marsh acquisition of JLT in a deal worth $5.6 billon.
- Arachas, once Ireland’s largest independently owned brokerage acquired by Ardonagh Group in 2020.
- Wright Insurance Brokers, with offices in Wexford and Carlow were acquired along with Lloyds Broker Robertson Lowe by UK-based Aston Lark, which is controlled by Goldman Sachs.
- Belfast-based Willis Insurance and Risk Management (Willis IRM) acquired Leeds firm Hale Kavanagh Insurance Brokers Ltd.
- Innovu, which is backed by MML Growth Capital Partners, acquire Wexford Insurances and Sheridan Insurances consolidating much of the south east of Ireland’s commercial market.
- London based Global Risk Partners acquire Plumb Underwriting and a majority stake In Renewable Energy specialists Crotty Group in Ireland.
Consolidation has been a continuing trend in recent times as It offers attractive value creation for shareholders. One thing to keep in mind however Is that so many of these investors are committed to exiting within as little as three years, so change will be a constant.
2) Technology continues to drive the future of the insurance sector:
Insurers continue to embrace technology seeking out ways to harness the value In data analytics, automation and robotics.
According to Deloitte’s recent survey, 95% of their clients expect an increase in the use of advanced analytics over the next 3 years. All of Barden’s insurance clients have mirrored this, indicating that there will be a marked increase in tech and data analytics roles throughout 2020 and into 2021. This should result in better fraud identification, smarter underwriting & pricing policy as well as huge investment In digital marketing. Features such as chatbots are likely to become mainstream.
2021 is shaping up to be a year of significant change in the insurance industry in Ireland. In Barden we’re here to help both professionals and companies reach their full potential as they navigate this evolving landscape.
Barden…The experts in financial services and insurance recruitment in Ireland…
From our offices in Dublin and Cork we work on financial services (FS) and insurance roles at all levels, partnering with FS talent and world-class FS teams nationally. If you’re a financial services or insurance professional seeking opportunity; or an FS or insurance leader looking to attract new talent, our experts can help. So get in touch with our team today on hello@barden.ie. Simple.
At times of adversity the word ‘resilience’ often comes to the fore. But what does it really mean and what can you practically do to build your resilience? We asked John Slattery, from our Partner Firm INSPO, to write a blog for us on the topic. Here’s what he had to say…
Critical or Crucial?
I find myself, on occasion, criticising myself for using phrases like critical, crucial etc. in describing a central topic at the outset of the blog post.
‘Is it really that critical or crucial?’, I’d often ask myself.
This post is the most certain I have ever been that the words critical or crucial are relevant. The world is changing dramatically right before our eyes. We will need all the resilience that we can garner within our being to manage the change upon us, and ahead of us.
We must start building resilience now.
Before offering two ways to get started on that building process, let’s first establish a common understanding of resilience.
What is Resilience?
I lean on the definition of coach Dr. Carole Pemberton to define resilience. Pemberton describes resilience as “the capacity to remain flexible in our thoughts, feelings and behaviours when faced by a life disruption or extended periods of pressure so that we emerge from difficulty stronger, wiser and more able.”
So, it is this three-fold flexibility that we have to build.
The question now is; how do we build it within ourselves? Let me offer two areas to work on as a starting point.
How to Build Your Resilience?
Your Network…
There are people you know who have the capacity to play a role in your resilience. They are those who help you see a way through a challenging time. A call to my father has so often helped me find a good perspective at a time when the wood and trees seemed as one.
The question for you is; who in your network has that same ability to help you in times of challenge?
As a simple self-check, rate out of 10, how good you feel you are at reaching out to them when faced with periods of pressure or tension? If the answer is less than 10, make a commitment to take action to improve the number, and improve your resilience.
Your Activities…
Certain activities can play a key role in your resilience. One category of activities is those that help you maintain a sense of inner-calm and grounded-ness. Yoga has helped me immeasurably to find a very solid base mentally, which comes to my aid in normal, as much as difficult, times. It is now a key component in my resilience make-up.
The key question for you is; what activities help you create a sense of inner-calm? Again, it’s helpful to rate out of 10 how disciplined you feel you are in ensuring the activity is adequately included in your schedule each week? If the answer is less than 10, then again, I encourage you to create a commitment to action to improve that number for yourself, and improve your resilience.
Your resilience is going to be beyond essential for you through 2020 and beyond. Your investment in it now is going to reap constant rewards.
Please make that investment and be well.
We are delighted to announce our new 3-year partnership with Chartered Accountants Ireland. The partnership will see us directly supporting and partnering with the Chartered Accountants Student Society of Ireland (CASSI) by investing a six-figure sum over three years, alongside a commitment to providing 1,000 career coaching hours for students and recently qualified Chartered Accountants.
This partnership with CASSI strikes to the heart of what we are all about in Barden – knowledge and insights first, jobs second. By working directly with, and supporting, CAI and CASSI we are aiming to make a real difference in the lives of the accountants of tomorrow.
“This partnership, with the future of the accounting profession in Ireland, is a culmination of years of hard work by our team here in Barden. It was a privilege to be asked to participate and we are proud to be a part of helping the Chartered Accountants of tomorrow make the best decisions for their professional and personal development. It’s about more than just jobs; it’s about life.” Elaine Brady | Managing Partner | Barden
“The contribution Barden will make to support the Chartered Accountants Student Society of Ireland (CASSI) will make a huge impact to the positive services we offer to our members, and we will be in a stronger position to ease the path of future Chartered Accountants as they launch their careers.” Emma Noonan | newly elected Chair of CASSI (Chartered Accountants Student Society Ireland )
Throughout the partnership we will be supporting student communications, such as a website and e-newsletters, dedicated sporting events, social activities, and coaching and advisory sessions for future Chartered Accountants.
“It’s an honour for us to have the opportunity to work with CASSI – to be able to support their members, directly and indirectly, as they train and qualify as accountants. This partnership is about helping people realise their potential and getting them on the right track as early as possible in their professional life. This is how we are going to make a lasting impact on the accounting profession in Ireland.” Jonathan Olden | Managing Partner | Barden Cork
We are very excited about this new partnership and feel privileged to have been chosen. Watch this space for lots more news about Barden and CASSI.
