Industry body releases Aussie first career research

Industry body releases Aussie first career research | Insurance Business

Industry body releases Aussie first career research
ANZIIF has released the findings of its Careers in Insurance Quantitative Study which gives a remarkable insight into career opportunities in the industry.

The research conducted alongside the ICA, NIBA and chaired by CEO of general insurance for Australia and New Zealand at Zurich, Daniel Fogarty, is the first of its type in the insurance industry, according to ANZIIF.

The report found that “approximately 40% of respondents believe that a skills shortage exists in the insurance industry and the majority perceives that it is worse than in other parts of the economy.”

The research found that a skills shortage is not as wide-spread and is isolated to technical roles for both general insurers and brokers. Respondents found some shortages in junior and mid-level roles – 50% and 79% respectively, while 77% of respondents noted a significant shortage at the expert level.

“Overall, 67% of respondents believe that the skills shortage will remain the same for the next 12-24 months, whilst 21% see it improving.”

The report did find increasing competition in the insurance labour market which is driving employers to a greater use of head-hunting companies with 20% of those questioned admitting to using recruitment firms and “55.9% reported increased time required to fill vacancies, taking up to 90 days longer to fill roles.”

Looking at staff turnover, reasons for departure, and retention programs, the research found a steady average of voluntary turnover at 12% which is in-line with research conducted by the Australian Human resources Institute which pins the national average at 13%.

Differing roles in the industry had lower turnover rates as the report states: “Voluntary turnover by functional role type revealed that senior management, IT, sales, claims and loss adjusting roles had lower than the 12% average turnover whilst broking, underwriting and administration jobs recorded turnover levels higher than the average.”

The report also highlighted that those with the lowest rates of turnover have invested in staff retention strategies while those with higher turnover rates noted a select age bracket driving turnover.

“Respondents were asked to provide commentary in relation to their turnover levels. This is best summarised as: companies experiencing low turnover are investing into staff retention strategies which involve a combination of providing some workplace flexibility, investment into learning and development programs, having good management in place, and paying slightly higher salaries.

“Respondents noted that good staff who are looked after and happy do not change jobs.”

“Conversely, those companies who are experiencing higher turnover commented that it was more prevalent in the younger age demographic and was often based on a perceived lack of career progression and challenge. This was most evident in small-to-medium sized companies, particularly in country/regional areas and capital cities outside Melbourne and Sydney where moving for greater career opportunities is more frequent.”