The insurance field is seeing a steady increase when it comes to pay across key demographics. The market for talent is becoming more competitive with unemployment at only 1.7% in the industry, and the amount employers are willing, and needing, to pay is reflecting the talent shortage. Read our compensation report to see how earnings in the industry are trending, and what employees are expecting as they move throughout their career.
Marketing your firm to middle managers
Companies need experience, and they’re willing to pay to acquire and keep it. People in the prime of their career are seeing an increase in lucrative opportunities as businesses try to fill their gaps in training and development with people from the outside. Since we’re seeing increased profits in the industry, companies are filling more middle-management positions now so they can build their leadership of the future. This practice can be beneficial for applicants and costly for companies when it comes to attracting external candidates. Organizations are reevaluating compensation, benefits packages, and bonus structures to make sure their best and brightest employees aren’t lured away by a bigger offer. For job seekers, this can be a rewarding time to make a move, but remember, when it comes to career satisfaction, money isn’t everything. And some companies are only offering more pay than industry average to make up for a poor culture or lack of advancement opportunities.
Veteran employees – Why they’re worth the investment
The biggest jump in compensation we’re seeing is after an employee reaches 10 years of service or more. That’s when they’re well versed in the insurance business, knowledgeable about best practices, and valuable mentors for younger employees. Companies are not only competing with each other for these professionals, but are also having to pay to keep them out of retirement. Baby Boomers represent 1/3 of employees in our industry, but they’re leaving the workforce in record numbers, and filling their high-level roles can be a challenge for employers. That’s why companies are seeing longer times to fill these critical positions and are paying thousands more than they typically would to get someone in quickly.
Getting better employees with benefits
With talent acquisition more competitive than ever in the insurance industry, employers need to get creative with benefits, work hours and cultural perks, or face the reality of overpaying to keep their current employees or to lure new talent away from competitors. Work-from-home capabilities, training opportunities and flexible benefits packages are a few of the ways companies are keeping their search and hiring costs down, but with the lack of training and talent in the industry, it looks like insurance will remain a candidate-driven market for the time being. That can certainly be costly for businesses, and lucrative for qualified, experienced job seekers.
It’s a competitive atmosphere right now, but candidates aren’t waiting to accept a position if they feel it’s the right one for them. The best way to have top talent in your company is still to train, develop and keep members of your own team. But with organizations calling candidates who aren’t actively looking to fill their open positions, it’s more important than ever to keep your own people happy. If you aren’t evaluating your compensation and benefits packages to make sure they’re leading the industry, you could risk making hiring and retention harder in the future. And if your company starts getting a reputation for not being a great place to work, it could be costly for your hiring efforts moving forward, both in talent and in salary.