Aon Hewitt’s Ward Group Research Center says unemployment is a thing of the past in insurance. The center’s Insurance Labor Market Survey said the industry is looking at a 2.1% unemployment rate.
And things are going to get better if predictions of increased revenue in 2016 by 80.4% of the firms polled. Increased revenue almost always means more jobs. Two-thirds of that 80.4% say they’re going to increase staff in the next year.
• 57% say the expansion is based on an increase in business volume.
• 54% say expansion is because they’re moving into new markets.
• 41% are buffing up delivery of existing services.
Ward Group head Jeff Rieder says this is the most optimistic things have been since they started tracking employment in 2009. But he warns to be careful reading too much into the stats. “Going into this softening market cycle, I think that [these numbers] might be a bit ambitious for many companies. The survey was filled out largely in early December and end-of-year results will likely temper growth plans, which may have an impact on staffing expectations.”
Looking at reality, Rieder said a lot of us are really optimistic in January but we don’t see the results we expected. And he gave some examples:
• In 2015 the industry grew 0.88% but predictions were for a 1.48% growth rate.
• 3.3% of companies reduced staff by 2% to 4% in 2015 when just 1.9% said they’d they were going to make cuts.
Jacobson Group’s Greg Jacobson added, “A big number of companies will be unable to achieve their initiatives because they will not be able to attract the type of talent they’re looking for. Industry veterans —15- to 20-year veterans — are particularly difficult to find.”
Another problem is finding younger talent. “And of course a big issue is attracting millennials to the industry. There will be 400,000 jobs to fill in the next few years and half the industry will be gone in the next 15 years,” Jacobson said.
• The toughest jobs to fill are actuarial and technological.
• Following close behind are analytics and higher executive positions.
• Bigger companies will find hiring tougher than smaller firms.
• Personal lines hiring is harder than commercial lines.
To meet hiring needs, Rieder and Jacobson say more efforts need to be aimed at people just leaving college. Retaining talent is also going to be a challenge.
Source link: Insurance Business America